The Rural Electrification Act of 1936, enacted on May 20, 1936, provided federal loans for the installation of electrical distribution systems to serve isolated rural areas of the United States. The funding was channeled through cooperative electric power companies, hundreds of which still exist today.

What does the Rural Electrification Act do?

This law allowed the federal government to make low-cost loans to farmers who had banded together to create non-profit cooperatives for the purpose of bringing electricity to rural America.

What is basic principle of rural electrification?

The guiding principle for most rural electrification programs is to expand service at the lowest cost to the highest number of community members. ... Specialized construction standards translate into lower capital costs, which in turn results in lower depreciation costs to the consumer.