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Federal Assistance to Electric Utilities

All electric utilities receive federal subsidies in one form or another.
  • Some 750 rural electric cooperatives borrow at reduced rates from the Rural Utilities Service.
  • This federal assistance amounts to approximately $1 per customer.
  • The investor-owned utilities (IOUs) have retained taxes equivalent to an interest-free loan from the federal government equal to $35 per customer.
  • Municipal utilities receive tax-exempt financing through tax-exempt bonds representing federal assistance of $55 per customer.