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CED-80-52 1 (1980-05-30)

handle is hein.gao/gaobabapv0001 and id is 1 raw text is: 
                                     - 1  I

BY THE COMPTROLLER GENERAL



Report To The Congress


OF THE UNITED STATES


Rural Electrification Administration

Loans to Electric Distribution Systems:

Policy Changes Needed



The Rural Electrification Administration has
been making subsidized loans to rural electric
distribution systems since 1935.  Do these
systems continue to need such loans?  For
many, the answer is yes. Some may need even
more assistance to help them charge electric
rates comparable to those of their urban
counterparts. But others could obtain loans
from private sources and still charge compar-
able rates.

REA policies should be revised to better eval-
uate each system's needs for subsidized loans.
In this way, more progress could be made in
achieving the program objective of helping
systems to become financially self-sufficient,
and additional assistance could be given to
those with greater needs.











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0 107  3CE- 5


CED-80-52
MAY 30, 1980

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