90 years in, $900 million to go

Ninety years ago, a profound transformation of rural America began—one that led to the creation of nearly 900 energy democracies. Today, these democracies are called rural electric cooperatives and electric membership corporations.

“Electric cooperatives are the backbone of rural economies throughout most of the United States, providing critical infrastructure in rural communities while demonstrating the capacity of rural communities to self-determine their own future.”

– Professor Gabe Chan, Co-Director, Electric Cooperative Innovation Center

The Rural Electrification Administration, now known as the Rural Utility Service (RUS), was one of the most successful federal agencies in our nation’s history, bringing power to millions of rural residents.

But rural electric cooperatives have been slow to transition to more affordable generation sources because, historically, they were locked out of tax incentives that for-profit utilities have enjoyed for decades.

This is one of the reasons the Rural Power Coalition (RPC) was created, and why we proposed $100 billion dollars in new federal investments in electric co-ops. It’s why we were able to secure a $10 billion down payment on that investment with the New ERA and PACE programs.

A historical image used to publicize electrification programs in rural areas, from the 1930s. Public domain image from the Library of Congress.

The United States Department of Agriculture (USDA) recently committed to “ensuring our rural communities have the resources they need to succeed.” In the next ten years leading up to the 100th anniversary of the Rural Electrification Act, it’s more important than ever to deliver on this promise of more affordable and resilient energy systems.

RPC will continue to advocate for new investments in rural communities. Over the next year, we will co-create a blueprint for a model electric co-op that is resilient and committed to affordability, and strong community engagement. This will be a one-stop-shop for co-op staff, board-members, member-owners, policymakers, and organizational partners to understand how to support and implement programs that benefit rural electric co-op member-owners. 

To stay up to date, sign up for our newsletter here. And check out the Electric Cooperative Organizing Toolkit and other resources to better understand and engage with your rural electric co-op or utility, and to push for changes that benefit you and your neighbors.