Pace Act of 1944 and the National Rural Electric Cooperative Association

The Pace Act indefinitely extended the Rural Electrification Administration (REA) as a lending agency and established a fixed rate of interest (2%) on a fixed repayment schedule (35 years).

Since 1972, most loans from the revolving fund carry 5% interest, with the 2% interest rate limited to those systems that have special need for the lower rate.

NRECA is an organization that allows member rural electric cooperative systems to collectively provide services that would be unavailable or too expensive if each system attempted to provide them individually. By working together through NRECA, member systems are able to provide better services to their members at the lowest possible cost.

<p>NRECA is not supported by government funds nor is it a federal agency. Non-fee services are supported by dues contributed by member services. NRECA provides legislative services and programs in management, insurance, public relations, advertising, and research.</p> Signup and view all the answers

<p>The key benefit NRECA provides is that by working together, member systems are able to provide better services to their members at the lowest possible cost, which would not be possible if each system tried to provide these services individually.</p> Signup and view all the answers

<p>The Rural Electrification Program is a partnership effort between the Federal government and electric systems serving rural areas of America to provide loans and support for the organization, construction, and operation of rural electric systems to provide service for rural residents.</p> Signup and view all the answers

<p>The Rural Electrification Administration (REA) was created by President Franklin D. Roosevelt on May 11, 1935, and in 1936 Congress passed the Rural Electrification Act to give REA continuing status and clarify its authority and responsibilities.</p> Signup and view all the answers

<p>The REA (Rural Electrification Administration) was the original government agency that administered the Rural Electrification and Telephone Revolving Fund and provided loans for rural electrification. In 1995, the REA became known as the Rural Utility Services (RUS), which expanded its scope to include water, sewer, and telephone services in addition to electricity.</p> Signup and view all the answers

<p>Farmers and other rural residents provided the initiative and leadership in organizing, constructing, and operating their own rural electric systems to provide service for themselves, their neighbors, and future consumers in their rural areas.</p> Signup and view all the answers

<p>Loans from the Rural Electrification and Telephone Revolving Fund were made to cooperatives, public power districts, municipal electric systems, and power companies that were willing to use the funds to provide electric service to unserved farms, residents, businesses, and establishments in rural areas.</p> Signup and view all the answers

<p>The primary goal of the Rural Electrification Program was to provide electric service to unserved farms, residents, businesses, and establishments in rural areas of America.</p> Signup and view all the answers