The Problem: No Power in Rural America
In the early 1900s, most urban areas had access to electricity. However, 90% of rural homes lacked power because investor-owned utilities (IOUs) considered rural areas too expensive and unprofitable to serve due to the distance between customers and the high cost of infrastructure.
The New Deal and the REA
The turning point came during the Great Depression. In 1935, President Franklin D. Roosevelt included rural electrification in his New Deal initiatives. He established the Rural Electrification Administration (REA) in 1935 through Executive Order 7037. The REA provided low-interest loans to encourage the formation of electric cooperatives—member-owned, nonprofit utilities.
Cooperatives Take Root
The first electric cooperative to receive REA financing was Cumberland Valley Electric in Kentucky. As a result, farmers banded together to form co-ops, built their own lines, and brought electricity to their communities. By 1953, 90% of U.S. farms had electricity, thanks largely to electric cooperatives.
Nodaway-Worth Electric & Northwest Missouri Electric Cooperative
Nodaway-Worth Electric Cooperative formed in 1939 in Maryville, Missouri. Northwest Missouri Electric Cooperative formed in 1936 in Savannah, Missouri.
Growth and Modernization
Electric co-ops continued to grow, expanding infrastructure and improving quality of life in rural America. Over the decades, they adopted new technologies, improved efficiency, and took on additional responsibilities such as broadband internet service, especially in underserved areas.
Cooperative Merger
United Electric Cooperative was formed in 1997 with a unanimous vote for the merger of Nodaway-Worth Electric Cooperative and Northwest Missouri Electric Cooperative.
Today
United Electric Cooperative serves over 7800 members across Northwest Missouri and Southwest Iowa. There are over 800 electric cooperatives in the United States, serving 42 million people across 56% of the nation’s landmass. Co-ops are guided by seven cooperative principles, emphasizing democratic control, member ownership, and concern for community.