The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-07-12

Electriication for
Rural Communities
Moves Forward.
by VINCENT Lyons
Times financial EdltS<


Indiana Farm Bureau-have their
ears to the ground awaiting the
Public Service Commissions &C
ton on a petition for the incorpor-
alton of the Utilities District Of
Western Indiana Rural Electric
Membership Corp, the first such
project IN the state 90 reach this
advanced stage.
The petitioner proposes to build
800 miles of electric transmission
line TO serve 2100 customers in II
western Indiana counties, which
comprise 60 towns. The average
population IN each Of these towns
IS 100, none OF whom at present
are furnished with electric service;
except, Of course, in the case Of a
few private plants.
Deep-dyed interest is being
shown in rural identification at
this time because it is generally
conceded that the problem will re-
ceive increasing attention during
the next few years The way to
this was opened earlier in the year
when the State Legislature passed
the Rural Electric Membership
Corporation act.
FARMERS are particularly inter-
i ested in the entire subject for
it will bring to them the benefits
of a public service which previous
" had been denied them. The re-
sultant conveniences viii place him
on a par with citizens in the more
widely populated territories. And,
unquestioably, utilization of cleo
trio on a sound basis can result in
increased efficiency of farm OPP
eratiOns.
Power companies can not help
but be interested in the develop
ments. Just how strongly they
feel, one way or the other. on the
program is conjecturaL On the
basis of the immediate outlook they
have little to lose as the RENO
setup will supply virgin territory
to a large extent. But when one
takes a longer view it can be seen
how the proposed sellers of cleo
tricity can snatch some of the bust
ness which, in the ordinary course
of events, might have gone to the
private enterprises.
The Indiana Farm Bureaus po-
sition in the situation is clearly
established and needs little ex-
PLANTATION. The bureau would like
to erect a system for the entire
state and thus obviate the neces-
sity Of having six or eight rural
electric membership corporations
segregated into geographical dis
trictS.
THE act passed by the Indiana
Il Legislature provides for the
formation Of non-profit member
ship corporations to be known as
rural electric membership corpora
tons for the purpose of promoting
and encouraging the fullest pos
sible use of electric energy in the
state by making electric energy
available to the inhabitants of
rural areas of the state at the low
est cost consistent with sound
economy and prudent management
OF the business of such corpora
lions.
As a result of this Utopian-
sounding preamble to the act itself,
some proponents of the idea are
prone to call it a IVA in minia-
ture. This presumption is unwar-
ranted if We consider the many
aims Of the Federal project. but
correct when the 'yardstick of
rates" theory is considered alone.
For the RENO should be able to
present, for the first time, an APP
Proclamation of the actual cost
Of furnishing electric service to
territories where customers are few
and far between.
Rural identification is a knotty
problem, so much so that private
utilities for years have Stunned
the task Of going into it. The rea-
sons for the aversion are purely
economic. Although naturally pro-
gresSive, these private companies
were diSinclined to build expen-
Sive transmission lines to serve
areas where the customer density
per mile was very low. Then, too,
power being new to those COM
munitieS, promotion work would
have to be carried on for a few
years before the investment would
pay.
COBER thought should be given
~ TO the entire RENO program.
Moreover. reasonable time should
be extended to allow them to prove
either their worthiness or I'M
worthipeSS. AS is the case with
virtually all cooperative enter
prises the management will have a
large part to do in bringing sue
cess or failure.
While plans are in an embryonic
stage no thought is being given to
the establishment of high-priced
stations for the manufacture of
power. The aim now is to make
wholesale purchases of electricity
from existing private companies
and retail it. via transmission lines
to be erected, to customers in the
rural areas.
AT what price the energy will be
retailed has not been determined
as yet. Undoubtedly, however,
those persons seeking to form rural
electric membership corporations
are Sanguine that some reduction
can be made from the present
charge of private cnmnanieS