About PVEC
History of Electric Co-ops and Powell Valley Electric Cooperative
In the 1930s, rural Tennessee faced a significant challenge: for-profit utilities refused to extend power lines beyond city limits, deeming rural areas unprofitable. These utilities argued that rural Tennesseans had little need for electricity, leaving much of the state literally in the dark.
This lack of access to electricity left rural and suburban communities at a severe disadvantage. Frustrated by this neglect, residents took matters into their own hands, forming Powell Valley Electric Cooperative and similar electric co-ops. These not-for-profit, consumer-owned utilities brought electricity—and with it, unprecedented opportunities—to rural and suburban Tennessee.
The Cooperative Model
A cooperative, like Powell Valley Electric, is a business owned and governed by its members. Unlike investor-owned utilities, which prioritize profits for shareholders, electric cooperatives operate as not-for-profit entities, focusing on the needs of their communities. Powell Valley Electric Cooperative is run for the benefit of its members, with its staff and board of trustees all being part of the very community they serve. The cooperative model is guided by seven internationally recognized principles, including democratic member control and a focus on community.
The Rural Electrification Administration
President Franklin D. Roosevelt believed that farming communities deserved the same access to electricity as urban areas. On May 11, 1935, he established the Rural Electrification Administration (REA) through an executive order. The subsequent passage of the Rural Electrification Act by Congress provided low-interest loans to electric cooperatives, empowering rural residents to establish their own utilities and bring electricity to underserved areas.
The Birth of Powell Valley Electric Cooperative
Powell Valley Electric Cooperative was born from the vision of a group of rural farmers determined to improve their quality of life by bringing electricity to their community. On September 6, 1938, the cooperative was officially chartered as a Membership Corporation. Shortly after, on October 1, 1938, the charter was amended to adopt the name Powell Valley Electric Cooperative.
With an initial loan of $150,000, the cooperative constructed 129 miles of power lines to serve 400 members. Over the years, Powell Valley Electric grew significantly. By 1991, the cooperative made the strategic decision to relocate its headquarters to New Tazewell, a more central location within its service area. Branch offices were also established in Jonesville and Sneedville to better serve its growing membership.
Today, Powell Valley Electric Cooperative operates over 3,700 miles of power lines, providing electricity to over 34,000 members. Its service territory spans the Virginia counties of Lee, Scott, and Wise, as well as the Tennessee counties of Claiborne, Grainger, Hancock, Hawkins, and Union.
Though its footprint has expanded greatly from its humble beginnings, Powell Valley Electric’s mission remains the same: to provide safe, reliable electric service to its members at the lowest possible cost.