The Sidney herald., 1960-05-04
Let's Face It. 1T
Just Amt real"

~ = O41S vi L4IODC "llO |
calls everything connected with
rural identification "REA"- read
on! You will be surprised to learn
that 'REA" is the abbreviated
name of a division in the u. S..
Department of Agriculture-far
removed from the local Rural
Electric SYSTEM that provides
electrical service to rural Ameri-
cans
Actually, a number of organi-
cations, and groups of organiza-
tions r actively engaged in
making the nation wide rural
identification go and grow! AS a
help in understanding this pro-
gram, here are a few basic facts
about the various groups directly
involved in rural identification.
Rural Electric Systems are local
organizations that actually do the
work of providing electrical SER
vice to people who need and use
the electricity. Individual electric
systems, Incorporated under state
law, borrow money from the
government through the Rural
Identification A dministr a ion
REA) to build electric lines and
facilities.
These systems bill their mem
bers for the electricity they use.
A portion of each bill is set aside
for interest and principal pay
mentS on the REA loan. Rural
Electric Systems are an outstand-
ing example of private enterprise.
They are owned, controlled, and
operated by the local people who
use the service they provide.
Since the start of the rural
identification program 25 years
ago, over 1000 rural electric
systems have been organized to
bring electric light and power to
people who had to do without
electricity up to 1885. These
systems have cr~isscroSsed the rural
areas of the Nation with nearly
LIS million miles of electric lines
which serve approximately 16 mill
lion people. While, by far, most
of the rural systems are coopera-
tives in some states they are called
public power districts or public
utility districts.
Rural Electric Statewide Asso-
Citations have been organized in
many states to provide services
for the Individual syStem-Services
that can be done more efficiently
or economically, or both, through
group action. Membership is
voluntary, but almost all Rura.
Electric Systems belong to a state
association.
The National Rural Electric
Cooperative Association is the ma.
tional service organization of al
rural electric systems. With head
quarters in it's own modern office
building in Washington, NRECf
functions on the national leve
much as the statewides do on TIT
state level. Important service
NRECA porvides for its member
include Insurance Coverage Man.
agement Institutes, Consulting
Service, Group Purchasing, ant
Public Relations Assistance t
state and system publications
NRECA also has regular contac
with Congress and many Fedora
administrative agencies, and pre-
sents to them the views of tn
rural electric systems of America
AS with statewide association!
membership in NRECA is vol
untary, and more than 90 per Ger
of all Rural Electric Systems be
long to the National Association
Member systems, by vote at annus
meeting or through their electe
state directors, control policie
services, and actions of NRECA.
The Rural Identification Ao
ministration is the real "REA" S
often referred to in matters {
rural identification. 1t is actual
a banking institution. A govern
ment agency, REA makes loans
local organizations for the cor
struction of electric lines in ruri
areas. Loans are secured by
mortgage and repaid with intere
over a period of 35 years. Viii
REA loans are available to 'pel
sons, corporations, states, cite
and districts, most of the borrow
ers have been rural electric cooI
eratives.
Contrary to the general opinio
REA does not own or control IL