In the 1930's less than 10% of rural Americans had access to electricity, while the vast majority of the urban population had been receiving the benefits of electricity for many years. The Rural Electrification Act was enacted in May, 1936 by President Roosevelt, which encouraged electrification in rural America.

Less than one year later, in 1937, a group of local leaders gathered to form Union County Electric Cooperative, making it the second oldest Electric Cooperative in South Dakota. Electric service would now be made available to the rural farms in southern Union County.