This excerpt from my book, A Question of Power, recounts Lyndon Johnson’s pivotal role in the creation of what is now the world’s largest electric co-op.
Great share Robert, as usual. To add to Randy’s comments, i have spent have my career on the IOU and IPP side of the industry and the other half on the Coop side. What i love about the coop side is the fact that our stock holders and rate payers are one and the same! Makes are focus very simple and laser. To deliver to our Members the most reliable and cost effective power possible. This feeds into our 7th Principle, which is to enhance the lives of the communities we serve. Love the Coops. Thanks Robert and Randy.
Public Power has been around from the beginning, City of Butler MO formed it's electric utility in 1881. I worked for Redding Electric Utility which was formed in 1921 when the City bought the distribution system from a PG&E predecessor.
I will say this, when the Winter Storm Uri hearings were held in the Texas HOR in 2021, the co-op representatives did themselves proud in terms of how they handled this situation and treated their customers during this trying time. True professionalism and civic mindedness.
I have always thought that REAs and electrical Co-Ops were some of the best things the New Deal sponsored. Didn’t realize LBJ had a significant hand in it. I lived in the Hill Country for 19 years. We were not on a co-op.
To be clear, Johnson got to DC after the passage of the PUHCA of 1935 and REA of 1936. But he was a staunch advocate for coops throughout his time in Washington. He never forgot from whence he came.
I could share a story about the Rural Electrification Act you won’t believe. It is beyond anything most people could imagine! Message me and I’ll share it, truly amazing and as always grateful for your work.
I hate communism, and I don't much like socialism, but the Pedernales Electric Co-op seems like a good thing to me (though I know almost nothing about it).
I guess the difference is, PEC was bottom up, and these big wind and big solar projects are top down.
Most of the "US" companies building the solar and wind utility projects are LLCs covering for and protecting foreign companies. Most are European. It's bad enough, IMO, that we are losing farm and forest land (in the name of saving the planet from co2) but that the money ends up in foreign hands really ticks me off.
Why aren't those companies destroying their own land and waters?
Thank you for that inspiring story Mr Bryce. It's one of my beliefs that governments should only do what only governments can do. In this case I presume that only the government would have been willing to provide a loan, that no enduring subsidies, so common today, were asked for, and that the thriving co-op paid back the loan. It's sad that, seen from the UK by those of us sufficiently old, LBJ is synonymous with the Vietnam war, because it appears from your story that in some ways, like Newton, he was able to see a little further. Your piece is also a powerful reminder that much of the prosperity we too often take for granted is very recent in the broad sweep of human existence.
Thanks, Ian. LBJ got to Washington after the passage of the two key pieces of legislation that changed rural America: the Public Utility Holding Company Act of 1935 and the Rural Electrification Act of 1936. Those measures, both of which were sponsored by Sam Rayburn, were necessary to break the big holding companies that dominated the US electricity sector. The REA, tho, was perhaps more important, because it provided federal dollars to build out rural electricity networks. That money was essential because the big holding companies were never going to build rural grids because those projects weren't going to be profitable enough.
And yes, this history of rural electrification isn't ancient history. It's within living memory. My pal, Ron Cauthon was born on a farm outside Vinita, OK. He's now in his 80s, and can recount the exact day his farmhouse got electricity, which I believe was in 1949.
Robert, what a great story. Can't wait for the book. I was raised on a farm in SW Oklahoma and we were serviced by Ki-Wash Electric co-op. In 1938 my grandfather was an initial subscriber and had to pay a $5 deposit and commit to $2ish monthly minimum usage. He was unsure if he would ever use that much electricity, LOL.
I am the CFO of Pedernales Electric and enjoyed reading this article. It struck a note with me. I've worked in the energy industry for over 30 years mostly in large multi-national corporate entities. I was aware of electric co-ops but did not fully understand the value they bring to their members until I took my current job. Our electric rates are about 80% of the average retail rate in TX and our outage metrics run well below industry averages. The member centric attitude of all the Pedernales electric employees by far is well above anything I've experienced in the corporate world. It is core to our mission and why service to our members as measured by competitive rates and reliable power delivery exceeds industry standards. I echo Robert's sentiment that I love electric cooperatives.
Thanks. Those are good points. And yes, coops and municipally owned electric utilities generally have electric rates that are below those of IOUs. Why? Their shareholders are also their customers.
Isn't this the antithesis of communism or socialism? Isn't this in the vein of Milton Friedman to put power in the hands of localities, and making those people accountable? It's competition to big power companies.
I am an ardent capitalist. At my cabin in Minnesota, we have Arrowhead Electric Co-op for power and they are awesome. At my home in Nevada, we have NVPower, owned by Warren Buffett, and they are hard to deal with.
This brings up another point for the modern era. Most places in America are dominated by large sclerotic corporate electric companies. Would it be a good idea for local city councils to work with small nuclear reactor power companies that could provide competition and provide power locally to work together to break up the government run monopolies?
I'm not sure what you mean by government run monopolies. But as to SMRs and local utilities, I would not hold your breath. I'm adamantly pro nuclear, but the nuclear comeback in the US will take decades, not years.
My Co-op, Rappahannock Electric is talking about that very thing. IMO a great idea. We have a large nuclear power plant (North Anna) that has been online since the late 70s and is permitted to 2060, close by. It powered around 500k homes. Can you imagine one or two SMRs powering a town or county? No farms or forests destroyed?
If we can run our aircraft carriers and subs on SMR type reactors, why not local?
Those are fair questions. I am hopeful for SMRs. But a shakeout of that industry is inevitable. There will be a handful of companies that prevail in the marketplace and we don't know who they are, nor do we know what chemistry they will use. The obstacles, as I have said many times, are regulations, capital, and fuel.
I've no experience with an electric co-op, but right now I'm in a rural county in the Blue Ridge Mountains of SW VA. The entire county has one traffic light. It also has a Telco co-op. That co-op has wired the entire county, including including every last single-lane unpaved road with fiber. If you have a place here, you can get gigabit internet via fiber. There's no way any of the big, corporate telcos or cable providers would have done this. So yes, co-ops definitely get things done that wouldn't happen otherwise.
Agree. Electric co-ops have also been stringing fiber optic lines on their poles to assure that rural residents have high-speed broadband. High-speed internet is as essential today as electricity.
My father was an acquaintance of LBJ. I met him when I was a child three times, twice at his Pedernales ranch. I know what LBJ's proudest accomplishment was, and that was to bring electricity and indoor plumbing to some 99% of Americans.
It was an incredible accomplishment, but most people today have never heard of it.
Since my dad had grown up in a place with no indoor plumbing, and HIS father had grown up without electricity, this was a very big deal to him, and it is to me as well. Now I'll have to read your book.
Interesting article. Makes me want to read the book. I live in the Rappahannock Co-op in VA so I appreciate learning the history of them.
I finally have a disagreement with you on something. While I understand why you think LBJ was great (especially when it comes to TX) but I remember him well and have to disagree with his greatness otherwise.
Thanks. We can disagree on LBJ. Like every politician, he had many flaws. His escalation of the Vietnam War was his great sin. But his great redemption came with the Civil Rights Act of 1964 and the Voting Rights Act of 1965.
Great share Robert, as usual. To add to Randy’s comments, i have spent have my career on the IOU and IPP side of the industry and the other half on the Coop side. What i love about the coop side is the fact that our stock holders and rate payers are one and the same! Makes are focus very simple and laser. To deliver to our Members the most reliable and cost effective power possible. This feeds into our 7th Principle, which is to enhance the lives of the communities we serve. Love the Coops. Thanks Robert and Randy.
Co-ops are businesses, just not predatory capitalist behemoths
How to learn more about electric co-ops - location, work, history, current events, etc. is there an umbrella org of any kind?
Public Power has been around from the beginning, City of Butler MO formed it's electric utility in 1881. I worked for Redding Electric Utility which was formed in 1921 when the City bought the distribution system from a PG&E predecessor.
I will say this, when the Winter Storm Uri hearings were held in the Texas HOR in 2021, the co-op representatives did themselves proud in terms of how they handled this situation and treated their customers during this trying time. True professionalism and civic mindedness.
I have always thought that REAs and electrical Co-Ops were some of the best things the New Deal sponsored. Didn’t realize LBJ had a significant hand in it. I lived in the Hill Country for 19 years. We were not on a co-op.
To be clear, Johnson got to DC after the passage of the PUHCA of 1935 and REA of 1936. But he was a staunch advocate for coops throughout his time in Washington. He never forgot from whence he came.
LBJ was a bit of a rascal (viz, delivering the votes from Texas for JFK), but he comes off well in this story.
I guess the story occurred before he was corrupted by power.
I could share a story about the Rural Electrification Act you won’t believe. It is beyond anything most people could imagine! Message me and I’ll share it, truly amazing and as always grateful for your work.
I hate communism, and I don't much like socialism, but the Pedernales Electric Co-op seems like a good thing to me (though I know almost nothing about it).
I guess the difference is, PEC was bottom up, and these big wind and big solar projects are top down.
Thanks for sharing this story.
I’m with you on communism and socialism, though this clip from comedian Jimmy Carr made me realize that it’s a matter of degree, and context.
https://x.com/jimmycarr/status/1989060702351622354?s=61&t=6ToTThZYwshP-AmAtfHoqg
Most of the "US" companies building the solar and wind utility projects are LLCs covering for and protecting foreign companies. Most are European. It's bad enough, IMO, that we are losing farm and forest land (in the name of saving the planet from co2) but that the money ends up in foreign hands really ticks me off.
Why aren't those companies destroying their own land and waters?
Thank you for that inspiring story Mr Bryce. It's one of my beliefs that governments should only do what only governments can do. In this case I presume that only the government would have been willing to provide a loan, that no enduring subsidies, so common today, were asked for, and that the thriving co-op paid back the loan. It's sad that, seen from the UK by those of us sufficiently old, LBJ is synonymous with the Vietnam war, because it appears from your story that in some ways, like Newton, he was able to see a little further. Your piece is also a powerful reminder that much of the prosperity we too often take for granted is very recent in the broad sweep of human existence.
Thanks, Ian. LBJ got to Washington after the passage of the two key pieces of legislation that changed rural America: the Public Utility Holding Company Act of 1935 and the Rural Electrification Act of 1936. Those measures, both of which were sponsored by Sam Rayburn, were necessary to break the big holding companies that dominated the US electricity sector. The REA, tho, was perhaps more important, because it provided federal dollars to build out rural electricity networks. That money was essential because the big holding companies were never going to build rural grids because those projects weren't going to be profitable enough.
And yes, this history of rural electrification isn't ancient history. It's within living memory. My pal, Ron Cauthon was born on a farm outside Vinita, OK. He's now in his 80s, and can recount the exact day his farmhouse got electricity, which I believe was in 1949.
😳😳😳
Robert, what a great story. Can't wait for the book. I was raised on a farm in SW Oklahoma and we were serviced by Ki-Wash Electric co-op. In 1938 my grandfather was an initial subscriber and had to pay a $5 deposit and commit to $2ish monthly minimum usage. He was unsure if he would ever use that much electricity, LOL.
No need to wait for the book. Order yours now. Great story about your grandfather. Again, this history is not that old.
I am the CFO of Pedernales Electric and enjoyed reading this article. It struck a note with me. I've worked in the energy industry for over 30 years mostly in large multi-national corporate entities. I was aware of electric co-ops but did not fully understand the value they bring to their members until I took my current job. Our electric rates are about 80% of the average retail rate in TX and our outage metrics run well below industry averages. The member centric attitude of all the Pedernales electric employees by far is well above anything I've experienced in the corporate world. It is core to our mission and why service to our members as measured by competitive rates and reliable power delivery exceeds industry standards. I echo Robert's sentiment that I love electric cooperatives.
Thanks. Those are good points. And yes, coops and municipally owned electric utilities generally have electric rates that are below those of IOUs. Why? Their shareholders are also their customers.
Isn't this the antithesis of communism or socialism? Isn't this in the vein of Milton Friedman to put power in the hands of localities, and making those people accountable? It's competition to big power companies.
I am an ardent capitalist. At my cabin in Minnesota, we have Arrowhead Electric Co-op for power and they are awesome. At my home in Nevada, we have NVPower, owned by Warren Buffett, and they are hard to deal with.
This brings up another point for the modern era. Most places in America are dominated by large sclerotic corporate electric companies. Would it be a good idea for local city councils to work with small nuclear reactor power companies that could provide competition and provide power locally to work together to break up the government run monopolies?
I'm not sure what you mean by government run monopolies. But as to SMRs and local utilities, I would not hold your breath. I'm adamantly pro nuclear, but the nuclear comeback in the US will take decades, not years.
My Co-op, Rappahannock Electric is talking about that very thing. IMO a great idea. We have a large nuclear power plant (North Anna) that has been online since the late 70s and is permitted to 2060, close by. It powered around 500k homes. Can you imagine one or two SMRs powering a town or county? No farms or forests destroyed?
If we can run our aircraft carriers and subs on SMR type reactors, why not local?
Those are fair questions. I am hopeful for SMRs. But a shakeout of that industry is inevitable. There will be a handful of companies that prevail in the marketplace and we don't know who they are, nor do we know what chemistry they will use. The obstacles, as I have said many times, are regulations, capital, and fuel.
I've no experience with an electric co-op, but right now I'm in a rural county in the Blue Ridge Mountains of SW VA. The entire county has one traffic light. It also has a Telco co-op. That co-op has wired the entire county, including including every last single-lane unpaved road with fiber. If you have a place here, you can get gigabit internet via fiber. There's no way any of the big, corporate telcos or cable providers would have done this. So yes, co-ops definitely get things done that wouldn't happen otherwise.
Same in Pope County MN
Agree. Electric co-ops have also been stringing fiber optic lines on their poles to assure that rural residents have high-speed broadband. High-speed internet is as essential today as electricity.
My father was an acquaintance of LBJ. I met him when I was a child three times, twice at his Pedernales ranch. I know what LBJ's proudest accomplishment was, and that was to bring electricity and indoor plumbing to some 99% of Americans.
It was an incredible accomplishment, but most people today have never heard of it.
Since my dad had grown up in a place with no indoor plumbing, and HIS father had grown up without electricity, this was a very big deal to him, and it is to me as well. Now I'll have to read your book.
Interesting article. Makes me want to read the book. I live in the Rappahannock Co-op in VA so I appreciate learning the history of them.
I finally have a disagreement with you on something. While I understand why you think LBJ was great (especially when it comes to TX) but I remember him well and have to disagree with his greatness otherwise.
Winfield Plantation on the edge of the Rappahannock River. Truly an amazing place!
Rappahannock region was a place I went to run bird dogs in horseback field trials. It’s an amazingly beautiful area!
Thanks. We can disagree on LBJ. Like every politician, he had many flaws. His escalation of the Vietnam War was his great sin. But his great redemption came with the Civil Rights Act of 1964 and the Voting Rights Act of 1965.
I DO enjoy your work and have friends who have seen you speak. You are one of my first "go to" people when debating people on energy.
We can can disagree and just not discuss politicians. 😉
Fair enough. But can we at least agree to make fun of Biden?
Absolutely, I'm ready whenever you are. There's LOTS of material. 😂