Copyright
1998, Niobrara Valley Electric Membership Corporation. All rights reserved.
Public power became a monopoly in Nebraska as a result of many factors: the depression and droughts of the 1930s, federal hydro-power projects, and the Holding Act of 1935 which forced the break up of private utility empires. The advent of the Rural Electrification Act also contributed to the growth of public power in Nebraska. The prime mover behind the growth of public power was an economic one--the people of Nebraska wanted a source of inexpensive power for their farms and homes.
In the 1930s, municipal electric systems served rate payers at lower rates than private utilities. The Nebraska Legislature realized this and in 1933 passed the enabling act that allowed and authorized the formation of public power and irrigation districts as public corporations and political subdivisions of the state.
Like the majority of the United States, the electrification of rural Nebraska occurred slowly. Private power companies were unwilling to extend power lines into areas they considered to be unprofitable. When the Rural Electrification Administration was created in 1935, only 7% of the farms in Nebraska received electricity from commercial power plants. The first federal loan for the development of rural electrification was the Gering Valley District in western Nebraska which became the first operational public power district in February 1937. By the 1950s, 94.3% of Nebraska farms were receiving power from public power systems.
Public power in Nebraska has been successful in meeting the goals of its founders. Today the citizens of Nebraska enjoy the benefits of public power with some of the lowest-priced electric energy in the nation.
Copyright
1998, Niobrara Valley Electric Membership Corporation. All rights reserved.