TVA • Americans began to support the idea of the government owning the utilities in the 1920’s. • Most people thought privately owned power companies charged too much for power. • Most of the private companies in the Tennessee Valley were bought by the Federal Government. • Others shut down. • Government regulations passed to prevent competition. • Economic Libertarians believed the government shouldn’t have anything to with the electricity generation business. • One of the first federal hydropower agencies.
TVA • Senator George W. Norris of Nebraska. • Was created to provide navigation, flood control, electricity generation, fertilizer manufacturing, and economic development in the Tennessee Valley • FDR signed the Tennessee Valley Authority Act on May 1933. • TVA was seen as a regional economic development agency that would rapidly modernize the region's economy and society.
TVA • Includes most of Tennessee, portions of Alabama, Mississippi, Kentucky, and some of Georgia, North Carolina, and Virginia. • It was the first large regional planning agency of the federal government and remains the largest. • The leader is David Lilienthal.
TVA(today) • Provides electric power to over nine million customers in the Tennessee Valley. • It acts primarily as an electric power wholesaler. • The power comes from dams, fossil fuel plants, nuclear power plants, combustion turbines, wind turbines, and solar panels.
REA • Nearly 90 percent of urban people had electricity by the 1930’s, but only 10 percent of rural people did. • Private utility companies claimed it was too expensive to stretch electric lines to rural areas. • They even believed most farmers were too poor to afford electricity. • The Roosevelt believed that if private utility companies could not supply electricity to rural areas, then it was up to the government to do so. • Court cases involving TVA in the 1930s concerned the government's involvement in public utilities.
REA • In 1935 REA was created to bring electricity to rural areas. • By 1939 the REA had had established 417 rural electric cooperatives • served 288,000 households. • The actions of the REA pushed private utilities to stretch electric lines to the countryside as well. • By 1939 rural households with electricity had risen to 25 percent. • Farmers needed more electricity than city people so that made up for the cost of stretching electric lines to the rural areas.
REA • REA was abolished in 1994. • The Rural Utilities Services took over.
Sources • http://en.wikipedia.org/wiki/Tennessee_Valley_Authority • http://www.u-s-history.com/pages/h1653.html • http://newdeal.feri.org/tva/tva10.htm • http://www.infoplease.com/ce6/history/A0842689.html