NRECA Supports Passage of Emergency Economic Stabilization Act of 2008

The National Rural Electric Cooperative Association urges Congress to pass responsible bipartisan legislation to protect this nation’s consumers

The electricity industry is among the most capital intensive industries in the world. It depends upon the credit markets to provide funds for the extensive infrastructure that is the building block of our electricity sector. If capital is unavailable, long-term reliability will suffer and if capital is scarce, interest costs will go up substantially.
Electric cooperatives must finance a distribution system that covers 76 percent of the nation. Rising interest costs will add to already sharply rising electricity prices for consumers. This can be and must be avoided by legislation that stabilizes the credit markets.
Electric cooperatives have contracts with the trading operations of the same banks that the Congress seeks to stabilize. These banks provide the liquidity we need to transact in the electric markets.
The vast majority of America’s electric cooperatives provide the NRECA-sponsored “multiple-employer” defined benefit retirement plan and 401(k) pension plan to their 55,000+ employees. These benefits enhance good jobs and provide stability and retirement security to the rural communities that we serve. We count on a well functioning market to secure the retirement benefits for our employees.

NRECA Stands Ready to Work With You to Address This Crisis