The Rural Electrification Act 1936 provided federal funding for installation of electrical distribution systems to serve rural areas. At the time the act was passed, electricity was commonplace in cities but largely unavailable in farms, ranches, and other rural places.

The funding was channeled through cooperative electric power companies, most of which still exist today. These member-owned cooperatives purchased power on a wholesale basis and distributed it using their own network of transmission and distribution lines.

Technical issues

In the 1930s, the provision of power to remote areas was not thought to be economically feasible. A 2300 volt distribution system was then used in cities. This relatively low voltage could only be carried about 4 miles before the voltage drop became unacceptable.

REA cooperatives used a 6900 volt distribution network, which could support much longer runs (up to about 40 miles). Despite requiring more expensive transformers at each home, the overall system cost was manageable.

Wiring homes and farms

REA crews travelled through the American countryside, bringing teams of electricians along with them. The electricians added wiring to houses and barns to utilize the newly available power provided by the line crews. A standard REA installation in a house consisted of:

• A 60 amp, 230 volt fuse panel, with:

1. A 60 amp range circuit
2. A 20 amp kitchen circuit
3. Two or three 15 amp lighting circuits

A ceiling-mounted light fixture was installed in each room, usually controlled by a single switch mounted near a door. At most, one outlet was installed per room, since plug-connected appliances were expensive and uncommon. Wiring was performed using type NM nonmetallic sheathed cable, insulated with asbestos-reinforced rubber covered with jute and tar.

Many of these installations still exist today, though most have been augmented to support a greater number and variety of appliances.

Some amendments to the Rural Electrification Act include

1944 - loan terms increased to 35 years, the act is made permanent

1949 - extended the act to allow loans to telephone companies wishing to extend their connections to unconnected rural areas

December 8, 1993 - "North American Free Trade Agreement Implementation Act" - The "Buy American" provision to now include Mexico and Canada.