RURAL ELECTRIFICATION ADMINISTRATION PROJECTS In considering the fiscal growth of Rural Electrification Administrationfinanced systems it should be remembered that their rates must provide an income large enough to amortize the investment over a 25-year period. This is in direct contrast to the methods of privately owned utility companies which refinance and do not amortize their investment. Depending on the rate of capital turn-over the amortization charge on Rural Electrification Administration-financed lines explains at least 20 percent of existing rates. Despite the difference in amortization practices, rates on Rural Electrification Administration-financed lines compare favorably with rural rates of privately owned utilities and when the amortization period is ended marked reductions in the rates on the Rural Electrification Administration-financed lines are anticipated. (The tables referred to and submitted by the witness are here printed in full as follows:) [United States Department of Agriculture, Rural Electrification Administration, Monthly Statistical ALLOTMENTS BY TYPE OF BORROWER AND PURPOSE, AS OF JUNE 30, 1941 MILES, CONSUMERS, ADVANCES AND ENERGIZED SYSTEMS-CUMULATIVE TOTALS RURAL ELECTRIFICATION ADMINISTRATION ACCOUNT WITH RECONSTRUCTION FINANCE CORPORATION AND BORROWERS' PAYMENTS COVERED INTO TREASURY Applications on hand or in process of preparation, as of June 30, 1941, $106,045,200. 0.00 2, 425. 46 7,055, 203. 67 12, 992, 586. 84 $430, 724.66 664, 095. 23 $1,094, 819. 89 |