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The History of CVEC
How It All Started
In 1937 only about 10% of Central Virginia's citizens had been successful
in obtaining electric service from the utilities in the area. A group of
citizens in the Rockfish Valley area of Nelson County decided to explore
the possibilities of forming a cooperative and borrowing funds from the
newly formed Rural Electrification Administration to construct their own
electric service. The idea spread rapidly, resulting in the formation
of a county-wide organization. The application for a charter was
executed at a well attended meeting on September 20, 1937, at Lovingston
High School. Early founders included L.C. Dawson, S.T. Rodes,
G.H. Whitehead, James Sites, F.R. Moon, and Fred Schilling. The State
Corporation Commission granted the charter on September 22, 1937.
Read more about the formation of
the Co-Op
| Important Dates in History |
| September 20, 1937 |
Organizational meeting at Lovingston High School |
| September 22, 1937 |
Cooperative chartered |
| October 10, 1937 |
First loan in amount of $100,000 |
| October 28, 1937 |
First meeting of Members & Incorporators in the office of John B. Whitehead, Lovingston |
| November 19, 1937 |
Appointed Lewis A. Bress as Project Superintendent |
| December 1937 |
Rented two rooms in Frank Stevens's house for office space |
| September 16, 1938 |
Energized first lines at Afton to the store of H.L. Foster |
| June 1941 |
Moved into new office on Rt. 29, Lovingston |
| 1941 |
Purchased first line truck - cost $1150 |
| 1947 |
Two-way radios installed to coordinate service |
| December 31, 1953 |
First Capital Credits assigned |
| 1958 |
Maintenance Headquarters at Appomattox and Palmyra are opened |
| 1962 |
Lovingston Office Building expanded; first transmission line energized |
| August 1965 |
First Capital Credits refunded - Allocation of 1953 & 1954 |
| 1994 |
Richard V. Ellis Peaking Generation Station dedicated in Martins Store |
| 1996 |
Cooperative Subsidiary - Central Virginia Services - is incorporated |
| Octobert 1998 |
Colleen Headquarters and Division Office completed |
Co-Ops in General
Consumer-owned utilities were established to provide electric service
in rural America. While most of the rural utilities are public entities,
such as public power districts, some are consumer cooperatives,
incorporated under the laws of the states in which they operate. A
consumer cooperative is a not-for-profit enterprise, set up to meet a
common need, and owned and controlled by the people it serves.
Organization
Almost 1,000 electric cooperatives form a countrywide rural electric
network serving 35 million people in 46 states. Most cooperatives are
distribution systems, but some are power supply systems, known as
G&T's - generation and transmission. In most states where rural
electric systems are located, statewide associations supply valuable
statewide coordination and services. These associations are financed
through dues from members, and revenues from services. They vary in
size and resources, but they all adhere to principles of cooperatives
working with other cooperatives.
The National Rural
Electric Cooperative Association (NRECA), formed in 1942, represents
the national interests of members. NRECA provides legislative services
and programs in management, insurance, public relations and advertising,
research, and energy and environment. NRECA is, like statewide
associations, financed by dues and revenues.
The Rural Utilities
Service (RUS) of the
Department of Agriculture does not own or operate any rural electric
organization - local, statewide, or national. RUS provides insured and
guaranteed loans and technical assistance where needed.
Statistical Highlights
Rural electric systems serve about 15 million farms, homes, schools,
churches, irrigation systems, commercial enterprises, and other
establishments in 2,500 of the 3,128 counties or county-type areas of
the United States. Co-Ops and other not-for-profit electric utilities
are present in about 80% of the U.S. Counties but serve the less
populated areas.
Although America's rural electric systems serve about 35 million people,
they average 6.6 consumers and $8,500 gross annual revenue per mile of
line. In comparison, most commercial utilities average 5 times as many
customers and 7 times as much revenue per mile of line.
In the 1930's, when the rural electrification program began, about 10
percent of America's farms had central station electric service. Today,
that figure is more than 98 percent. The program was established to
help provide electric light and power not only to farm people but also
to all customers not being adequately served in rural areas.
Rural electric systems own and maintain nearly 43 percent of the electric
distribution lines in the United States but own only a little more
than 5 percent of the nation's generating capacity.
For more information about Rural Electric Cooperatives visit the
NRECA website.
For more information about RUS Electric Programs visit the
RUS website.
| Cooperative Milestones |
| May 11, 1935 |
President Franklin D. Roosevelt, by Executive Order, created
the Rural Electrification Administration (REA).
|
| May 1936 |
The Rural Electrification Act was passed by Congress. Sponsored
by Sen. George Norris (R., Nebr.) and Rep. Sam Rayburn
(D., Tex.), the Act continued the Rural Electrification
Administration and the loan program to finance qualified
entities willing toassume responsibility for providing electric
service in rural areas, with preference to nonprofit
enterprises.
|
| 1944 |
Congress passed the Pace Act, indefinitely extending REA as a
lending agency, and establishing a fixed rate of interest
(two percent) an a fixed payment schedule (maximum 35 years).
The clear intent of the legislation was to electrify all of
rural America. Since 1950, all loan contracts have contained
within its area, no matter how sparsely settled.
|
| May 11, 1973 |
Just 38 years from the date REA was created - a bill providing
for insured loans for a Rural Electrification and Telephone
Revolving Fund, and for guaranteed loans under the Rural
Electrification Act of 1936 as amended, became Public
Law 93-92. This replaced the REA direct loan program which was
terminated by the Administration on December 29, 1972.
|
| October 20, 1976 |
The Rural Electrification Act was amended to correct unintended
inequities in the interest rate criteria.
|
| 1995 |
The USDA reorganized. The Rural Electrification
Administration became part of the
Rural
Utilities Service.
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Other History Links
CVEC on PBS - CVEC was featured as part of a public television
documentary on rural electrification during the Depression Era. Visit the
Ground Beneath Our Feet web site.
A Poem by Grace Lee Payne
Electricity on the Farm (1947)...
|
Back in the mountains to our surprise
The electric line has come through the pines
Through the mountains and the hillsides too
It looks too good to be true
They chopped and chopped and hit a many hard lick
To put the line where they saw fit
They cleared the way over the fields
Over the rocks and the rills
No lamps to fill, no chimneys to wash
So that makes more convenience for the housewife
When our days work is done and night comes on,
Just press the button and the light will come on.
Grace Lee Payne Creel
1947
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Power in the
Limelight - Electricity in the Limelight, an essay by Thomas
Thurston, New Deal Network
What REA
service means to our farm home
The first benefit we received from the REA service was lights, and
aren't lights grand? My little boy expressed my sentiments when he
said, "Mother, I didn't realize how dark our house was until we got
electric lights..."
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