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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

A light in the dark

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

Work Crew Raising a Pole

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.


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


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..."



Central Virginia Electric Cooperative
Corporate Headquarters:
800 Cooperative Way
Arrington, VA 22922-3300
phone: (434) 263-8336
toll-free: (800) 367-2832
fax: (434) 263-8339
Mailing Address:
P.O. Box 247
Lovingston, VA 22949