Rural cooperatives could spark a new electricity crisis: federal bailout funds might run short if co-ops begin to fail

Journal Article · Mon Nov 19 04:00:00 EST 1984 · Bus. Week; (United States)

OSTI ID:5900853

The Rural Electrification Administration (REA) may have to bail out many of the 981 non-profit rural electric cooperatives, which are feeling the same pinch of lower demand and high construction costs as investor-owned utilities. Neither government nor industry spokesmen will say just how large the REA's liability could be if a string of co-ops starts to fail, but more than $20 billion of the REA's $50.8 billion in loans and guarantees has gone to 16 co-ops building nuclear plants and to 11 building coal plants. The co-op industry predicts the REA will have to go to Congress for a bailout within three years. The industry's solution is for Congress to forgive nearly $8 billion in long-term debt that REA owes the Treasury.

• OSTI ID: 5900853
• Journal Information: Bus. Week; (United States), Journal Name: Bus. Week; (United States); ISSN BUWEA
• Country of Publication: United States
• Language: English

Related Subjects

20 FOSSIL-FUELED POWER PLANTS
200106* -- Fossil-Fueled Power Plants-- Economics
29 ENERGY PLANNING, POLICY, AND ECONOMY
290200 -- Energy Planning & Policy-- Economics & Sociology
296000 -- Energy Planning & Policy-- Electric Power
CONSTRUCTION
COOPERATIVES
ECONOMICS
ELECTRIC UTILITIES
FINANCIAL ASSISTANCE
FINANCIAL INCENTIVES
FINANCING
LOAN GUARANTEES
NATIONAL ORGANIZATIONS
POWER DEMAND
PUBLIC UTILITIES
US DOA
US ORGANIZATIONS
US REA