By the 1930’s, cities had enjoyed electricity for decades. However, no power company was willing to foot the cost of running electric lines to isolated farm homes, and most farmers would not have been able to afford electricity anyway. The Rural Electrification Administration was created under the New Deal. It provided low-cost loans to groups of people (“cooperatives”). The people paid back the loans in their electric bills. A dramatic change accompanied this; electricity saved labor, increased production, and improved the quality of life.