HISTORY ----- UPSHUR-RURAL ELECTRIC COOPERATIVE CORPORATION

Electric power during the past 80 years is one of a few man-made services which have revolutionized the world.

But it was a service which only persons in the cities could enjoy, even up to the middle of the 1930’s in America. Why? Because, uncertain volume of use and the system of privately-owned power; which required that investments be made only where a certain rate of return could be made.

Millions of rural families along with a lot of other people wanted something done about it. Studies were made by those who knew the situation. A plan was formed. Let the people who will use the electric power in the rural area form their own power distribution company and sell to themselves. That was the plan. The Congress saw fit to provide the financing of such co-operative in 1935.

From this began the history of all US rural electric co-operatives. And in 1936 the rural residents of Upshur County started active efforts toward getting power to their homes and farms.

W. D. Seals, Upshur County Agent, became interested in improving the living standards of rural people and began a drive to get electricity to them. This was going to be a big task, for money was scarce and the cost of constructing electric lines was high.

However, within the Department of Agriculture was created the Rural Electrification Administration, better known as REA. Its purpose was to provide loans for cooperative groups to finance their electric projects.

Seals and a group of civic and business leaders of Upshur County began to draw up plans for an electric cooperative. After many hours spent in planning and work, a “flicker of light” was seen. These men were not paid for their time, but only expenses occurred while on trips.

On December 16, 1936, Seals sent two packets of signed applications to the Development Division of REA in Washington, D.C. requesting a loan of $140,000 to finance the construction of 105 miles of lines into rural communities of this area.

While waiting for approval of the loan, the men worked even more to obtain members for the cooperative. Many problems were encountered in obtaining rights-of-way, finances, and full support of the public. However, most people were willing to chance the “new adventure.” One farmer, when asked about the purchase of a right-of-way across his land, gave the cooperative permission to place it anywhere necessary on his farm. This was typical of many who desired to have electricity in their homes.

During their wait, the men elected the following temporary officers and directors: J. T. Allen, president; E. A. Cobb, Vice-president; Steve Barton, secretary-treasurer; and B. E. Latch and S. R. Senn, directors.

Finally on September 29, 1937, Seals received a letter from John M. Carmody, Administrator of REA, advising him that a partial allocation of $70,000 to begin work on the Upshur-Rural Electrification project had been approved.

Before actual construction of the lines could begin the project had to have a lawyer, engineer, and project superintendent. After many firms and individuals had been investigated the following were approved and selected to represent Upshur-Rural Electric.

Attorneys were Florence and Florence of Gilmer; Hawley Freese and Nichols of Ft. Worth were selected as engineers for the project. REA also approved Samuel W. Scales of Greenville as project superintendent. At that time, the REA also approved the First National Bank of Gilmer to handle the finances of the project.

On October 25, 1937, the Upshur-Rural Electric Cooperative was “born” when the State of Texas issued a charter to the group. A few days later, on October 29, the founders met in the offices of Florence and Florence and put the wheels of electrical progress into motion.

At this meeting, they elected the permanent officers of the cooperative. They were: Cobb, president; Allen, vice-president; Senn, secretary-treasurer; and Barton and Latch, directors.

The cooperative’s first office was located in the basement of the courthouse in Gilmer. The office space was limited, but through the determination of the men and the member consumers, they made things work.

As the cooperative grew, more and more rural citizens joined. Many wanted to join, but felt they could not for lack of money to pay their electric bills. The five dollars needed for a membership fee was just too much money.

Many thought to themselves, “with that much money I could buy enough kerosene to last a year or more.”

When electricity finally did get to the rural areas, the system was very small as compared to today. In July 1938 when the lines were first energized, there were 139 members served by 28 miles of line. The primary use for electricity then was lighting for the home. Often the children would run around the house turning the lights on and off just for the novelty of it.

Later members began to buy appliances and use more electricity. Appliance dealers would show the uses of appliances at large gatherings, for everyone was eager to learn of the new conveniences.

Oftentimes people would come to learn of the new power. At one such meeting, the speaker asked for questions. One lady, not understanding electric current, asked “How long will I have to wait after pulling the switch before the light will come on?”

Another person who said that electricity was too expensive was finally convinced to try electric lighting. After some persuasion by Allen, he decided to try it and if he didn’t like it, he could have it taken out. Allen said, “After trying the lighting, if you don’t like it, I will pay the electric bill you owe.”

After two weeks, the man said that he could not be paid to have his electric lights taken out. This is typical of the many citizens who were doubtful about the benefits of electricity. Many of the early members now say, “Rural electricity is the best thing ever offered to rural people.”

As time went on, the cooperative grew and now includes parts of 10 East Texas counties. During its growing, the cooperative has been granted several large loans. In July of 1938 it was granted a $125,000 loan. Then again in May 1939 another $133,000 loan was approved by the REA.

As the cooperative grew, the offices in the courthouse were entirely too crowded. A move was begun to erect a headquarters building on a 26-acre tract of land located west of Gilmer.

In 1941, the cooperative received a loan of $125,000 from the National Youth Administration to erect the building, making it a well-lighted, well-arranged and pleasant office for the employees.

Throughout the year, many organizations use the headquarters building as meeting sites. Among these are 4-H Clubs, F.F.A., and F.H.A. Chapters, Agricultural-Extension Service, non-denominational groups, civic clubs, and others.

For the convenience of these groups, the building has an air-conditioned auditorium, which seats 600 people. Also included is an all-electric kitchen with a refrigerator, range, waste disposal unit, and automatic dishwasher.

In 1944, Mrs. Samuel W. Scales became the cooperative manager. She served in this capacity until 1950. During her time of service, the cooperative was involved in several small growth projects.

Because of the war, growth was slow, but through persistence, the cooperative managed to survive “the hard times.” Materials for construction of lines were few, for most were needed for the war cause.

Following the war, Upshur-Rural Electric began a stepped-up building program.

J. L. Johns was elected to serve as manager in 1950. He assumed the office July 1 of that year replacing Mrs. Scales.

During the early 50’s, the REA approved several large loans for the cooperative. In June 1956, a loan of $480,000 was approved for construction of new lines. Then again in 1957, the REA granted a $726,000 loan, the largest ever granted to Upshur-Rural.

This loan was used to construct 50 miles of transmission lines and to erect two power substations. Money was also allotted to expand the system and install heavier lines to carry more power per member.

Throughout the years, the power use of cooperative members has grown by leaps and bounds. In 1960, the power use increased by 36% over 1950.

By 1970 the cooperative was serving approximately 14,400 consumers who averaged 475 KWH per month. The 1970’s were the fastest growing years of the cooperative with over $14,000,000 invested in plant growth to expand to meet the needs of the surrounding areas. There was a 45% growth in consumers during these ten (10) years serving 21,000 consumers by 1980. Also, by 1980 the average consumption by consumer had risen to 920 KWH per month compared to 40 KWH in the beginning.

The 1970’s saw new transmission lines, distribution lines and substations built to better serve the members.

As of December 31, 1984, Upshur-Rural Electric Cooperative Corporation was serving 27,270 consumers with 296 miles of transmission line, and 4,244 miles of distribution line.