Understanding The Rural Electrification Act

massive market failure

Rural Electrification is the technology of bringing electric power to remote and rural areas without depending on urban power grids. Rural communities have been suffering from massive market failure as the current electric grids fail to meet their need for electricity. As a result of these failures, people are moving from the cities to the rural areas and finding it easier to live without electricity or any source of energy except that of wind-driven generators. The governments of different countries are trying to encourage such movement by offering attractive schemes. However, such renewable sources are still not used widely because of the lack of information and the required investment.

Under the Federal Government’s Rural Electrification Program, financial incentives are given to farmers who convert agricultural lands into crops suitable for making ethanol. The ethanol produced is used to fuel automobiles in the cities. However, the Federal Government’s Rural Electrification Program has an ambitious objective which is to make all rural areas self-sufficient in power supply by the end of next decade. There are two programs under the Rural Electrification Program. These are the First Bankruptcy Forests program and the Accelerated Rural Electrification Program.

the use of electric power

With the help of this program, the rural Americans will be given an opportunity to make their lives better and more comfortable with the use of electric power. This would in turn improve the living conditions of the rural American people, as well as create new businesses for the development of the rural economy. This scheme was introduced by the Federal Government in consultation with several state governments and Indian tribal authorities. It is being implemented successfully in states like Kansas, Mississippi, Arkansas and Wisconsin.

The first bankruptcy forest policy was introduced by the Obama Government as part of the rural electrification program. Under this executive order, every utility company in the country is prohibited from developing any coal or gas reserves on lands that have been zoned for such purpose. This new deal was also accompanied by another executive order that states that developing any new plants which will require the use of non-reusable power will need to seek prior approval from the Federal Government. This was done in order to protect the people of America from the dangers of non-renewable sources of energy. The executive order was later included in the Farm Bill so that it could be implemented nationwide.

transmission of electric current

The second part of the rural electrification act is related to transmission of electric current in rural areas. Under this act, the Federal Power Commission was directed to formulate a new rule under the Electric Rate Maps. This rule states that the prices of electric poles and cables will not fluctuate according to the capacity of the distribution system. This is one of the most effective laws that has been implemented in the past years. This is mainly because the increasing needs for electricity in rural areas often results in the increase of the distribution systems’ capacities, which in turn causes an increase in the prices of electric poles and cables. Thus, this measure has helped reduce the problems in rural areas, which in turn helped generate more jobs in the country.

The final component of the rural electrification act pertains to the incentives given to the residents of rural America. Under this section, the Federal Government is required to pay for the costs that are needed in improving and maintaining the electric lines in rural areas. The amount of money that would be paid should equal the amount of money that the rural American people would save if they switch to electricity powered lights. The incentive money should be given to those who would help in developing more efficient and clean electric poles and cables. This ensures that there would be more jobs for rural Americans since the electric companies would have less to provide in the form of incentives.

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