Off and running -- a Texas co-op finds competing easier without the REA

Journal Article · Tue Jun 01 04:00:00 EDT 1993 · Public Utilities Fortnightly; (United States)

OSTI ID:6478492

Collir, S E

In 1987, Cap Rock Electric left the Rural Electrification Administration (REA) when the federal government allowed electric cooperatives to pay off their REA loans at a substantial discount on the outstanding principle. The lower principle reduced annual debt-service by $1.5, even with higher interest rates. Cap Rock is now a successful independent utility, which has diversified into natural gas and a variety of joint energy resource ventures with utility and non-utility partners. If the REA does not survive the present round of budget cuts, its disapperance is unlikely to be the deciding factor between viability and disaster for an electric cooperative.

• OSTI ID: 6478492
• Journal Information: Public Utilities Fortnightly; (United States), Journal Name: Public Utilities Fortnightly; (United States) Vol. 131:11; ISSN PUFNAV; ISSN 0033-3808
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
296000* -- Energy Planning & Policy-- Electric Power
BUDGETS
BUSINESS
COOPERATIVES
ELECTRIC UTILITIES
ENERGY POLICY
FINANCING
GOVERNMENT POLICIES
NATIONAL GOVERNMENT
NATIONAL ORGANIZATIONS
PROFITS
PUBLIC UTILITIES
US DOA
US ORGANIZATIONS
US REA