Providing Power
PrintDespite Challenges, Plumas-Sierra Communities Worked Together to Turn on The Lights
Do you remember the last time your power went out? Do you remember how long the lights were off? Now, take a minute and try to imagine this is your life 24/7. Prior to 1935, 9 out of 10 homes in rural America did not have electricity
While there was nothing stopping investor-owned utilities from bringing power to rural America, it was not profitable to do so.
For many years, power companies ignored the rural areas of the country. Due to the unavailability of electricity, rural populations, and their economies were left behind. For an investor-owned utility to bring power to a rural resident’s home, the resident was required to pay the full cost of connecting their homes to the system. In many cases, it was twice the annual income of that household.
Many Plumas-Sierra Rural Electric Cooperative members still refer to PSREC as “REA.” In 1935, President Franklin D. Roosevelt signed Executive Order Number 7037, which established the Rural Electric Administration. The nickname stuck, at least for PSREC.
A year later, in 1936, the Rural Electrification Act was passed and established the program that provided federal low-interest loans designed to electrify all of America.
Despite access to these low-interest loans, investor-owned utilities were not interested in using them to serve sparsely populated rural areas. However, many farmer-based cooperatives began submitting loan applications. REA quickly realized electric cooperatives would be the future of bringing power to those still left in the dark and would make sure rural electrification became a reality.
Most loan recipients were newly formed electric cooperatives. Today, nearly 1,000 locally owned co-ops provide power to 42 million people and power 56% of the nation’s landmass.
Electric cooperatives are private, independent, not-for-profit, electric utilities owned by those they serve. Cooperatives are owned by their members, as opposed to investor-owned utilities owned by shareholders, which is more common in the United States.
Rural cooperatives in America self-govern and operate based on the Rochdale Principles, which are a general statement of how a cooperative operates.
The following are the 7 Cooperative Principles:
- Voluntary and Open Membership.
- Democratic Member Control.
- Member Economic Participation.
- Autonomy and Independence.
- Education, Training, and Information.
- Cooperation Among Cooperatives.
- Concern for Community.
Testimonials of the Effort
PSREC is fortunate to have testimonials from its members about the formation of the cooperative that allow us to see, almost 90 years later, a view into what forming the co-op was like.
Ted Ramelli, of Vinton, remembered his father, Rudolph, who was instrumental in the formation of Plumas-Sierra REC.
“When the REA came into being, there was a provision that allowed investor-owned utilities to borrow 2% money and extend lines to rural areas,” he said. “My father and several men from our area interested in power went to Sierra Pacific Power and Pacific Gas & Electric to try and interest them in taking advantage of these loans. At 1 of the offices, they were told ‘no’ with no reasons given. In the other president’s office, the president of the utility refused to even acknowledge their presence in the room. He wouldn’t even look at them. The utility boss was incredibly rude.
“The Sierra Valley Grange helped organize Plumas-Sierra. My father was the secretary of the grange, and he spent many days going door to door trying to get people to sign up.”
Claude Harwood vividly remembered when the lights came on.
“The lines got to Lassen County last,” Claude said. “We had gone that day to the cinema in Susanville. My father, mother, my wife, and I were driving back when we saw what looked like a fire at our house. It was our home, lit up from the new lights, on for the 1st time.”
Josie Roberti, of Sierra Valley, was also part of the effort.
“Word started spreading about electricity coming to Sierra Valley,” she said. “I get nosy when new stuff comes along, so I was convinced early that we should have it.
“Mr. Ramelli was going door-to-door trying to enlist support and sign people up. I decided to help out. We got many a door slammed in our faces. It was tough. I always felt like we were intruding. Some people just didn’t trust the government. Other people would think about it for a while and come around.
“When the power came on, a cream separator was 1 of the most important additions. The separator saved hours and hours of hand cranking.”
What Makes Cooperatives Different
PSREC is consumer-owned and not-for-profit. That means any revenue beyond expenses is eventually returned to the membership in the form of capital credit payments. PSREC is committed to providing the best possible service at the lowest possible cost.
We take pride in our cooperative—a grassroots system of service started by pioneers like those who settled in this area. Keeping the cost of electricity affordable helps keep local businesses competitive while preserving our rural heritage and standard of living.
Plumas-Sierra REC remains committed to improving the quality of life of our member-owners and our local communities. In addition to bringing electricity to some of the most rural parts of California, Plumas-Sierra REC also owns Plumas-Sierra Telecommunications, which offers high-speed internet services to the region. PST is run by a 7-person board appointed by the electric cooperative board.
Our subsidiary has a dual role: it reduces the costs of electricity while providing vital services.
Our internet program was founded to bring high-speed, high-quality internet access to all of our members. Our goal is to ensure no region is left behind.
Early Milestones in PSREC History
- August 8, 1937 — Plumas-Sierra Rural Electric Cooperative is incorporated.
- August 12, 1937 — The 1st meeting of incorporators is held at Sierra Valley Grange Hall at Vinton.
- August 24, 1937 — The original loan from REA is authorized.
- September 1, 1937 — The original loan brought forth by REA for $283,000 to build 229 miles of line and serve 643 members is approved.
- October 4, 1937 — A wholesale power contract is executed with Pacific Gas & Electric.
- March 25, 1938 — A construction contract is executed with Fritz Zeibarth Co. of Long Beach.
- July 11, 1938 — The rate schedule is adopted.
- September 4, 1938 — The system is 1st energized, and the lights come on for the rural community.
- December 1938 — The co-op office moves from Blairsden to Portola.
