REA Energy

What REA Energy does

REA Energy Cooperative, Inc. is a member-owned electric distribution cooperative headquartered in Indiana, Pennsylvania, delivering electricity to approximately 25,347 services across seven Western Pennsylvania counties (Armstrong, Blair, Cambria, Clearfield, Indiana, Jefferson, and Westmoreland). Founded in 1937 as Southwest Central Rural Electric and rebranded in 2001, the cooperative operates a regulated distribution business over approximately 2,731 miles of line, supported by 68 full-time employees as of 2023, and reported electricity sales of 370,745,390 kWh in 2023. Its core offering is straightforward kWh-based distribution billing on a relatively flat regulated rate structure, augmented by demand-response programs — Dual Fuel/ETS heating and Hot Water Heater Load Management — that switch or shed load during peak periods to lower purchased-power costs. Members also have access to a distributed generation interconnection policy accommodating member-owned solar, wind, and biomass systems.

The technology stack is conventional utility infrastructure: distribution lines and transformers, the SmartHub member portal (web and iOS/Android apps) for billing, outage reporting, and service enrollment, an interactive Outage Viewer map, and remote disconnect/reconnect technology for field operations. Beyond the regulated electric core, REA Energy operates two subsidiaries: REA Energy Services (established 1999) for HVAC installation, electrical contracting, generator sales, surge protection, and tree trimming; and In The Stix Broadband LLC (acquired June 2022) for internet, phone, and IT services, with an Indiana County fiber build contract awarded in June 2023 covering approximately 130 miles.

Revenue mechanics are diversified across recurring kWh distribution, one-time service fees (membership, deposits, hookups, disconnects/reconnects), subsidiary hardware sales and professional services from REA Energy Services, and recurring broadband subscription fees from In The Stix. Pricing on service fees is publicly disclosed ($5 membership, $100 deposit, $20-$110 hookups, $90-$200 disconnect/reconnect variants). Capital Credits are returned annually to members based on patronage, and the Co-op Connections Card ties member benefits to the broader Touchstone Energy national network. REA Energy is governed by a nine-member board elected to four-year terms and holds no external investor or parent company.

Name

REA Energy

Legal name

REA Energy Cooperative, Inc.

Website

https://reaenergy.com

Company type

Private

Founded year

1937

Operating status

Operating

Headcount range

51–100 employees

Short description

REA Energy Cooperative is a member-owned electric distribution utility founded in 1937 that serves approximately 25,000 members across seven Western Pennsylvania counties via 2,731 miles of distribution line, offering electricity, demand-response programs, and related subsidiary services.

Ownership category

akta.pro rank

Headquarters

HQ city

Indiana

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2C

Offering type

Services

Revenue model

1. Electric Distribution Service: Primary revenue from electricity distribution to approximately 24,000 residential and commercial members across seven Western Pennsylvania counties. Revenue based on kWh consumption and fixed service charges.
2. Service Fees: Fees collected for membership ($5), security deposits ($100), service hookups, disconnects, reconnects, and other operational services
3. HVAC Services: Sales and installation of heat pumps, HVAC systems, and related equipment through REA Energy Services subsidiary
4. Electrical Contracting Services: Electrical contracting services for residential, commercial, and industrial customers through REA Energy Services subsidiary
5. Generator Sales and Installation: Sales and installation of Honeywell emergency generators through subsidiary
6. Tree Trimming Services: Tree maintenance and removal services offered to members and non-members
7. Broadband and IT Services: Internet, phone, and IT services through subsidiary In The Stix Broadband LLC (acquired 2022)

Pricing tiers

Go-to-market motion1 record

Distribution channels5 records

Marketing channels8 records

Core offering

REA Energy Cooperative, Inc. distributes electricity to approximately 24,000 residential and commercial members across seven Western Pennsylvania counties. Beyond core electric service, the cooperative offers demand-response programs (Dual Fuel/ETS heating and water heater load management), broadband internet through its In The Stix Broadband subsidiary, and HVAC, electrical contracting, generator, and tree-trimming services through its REA Energy Services subsidiary.

Product overview

REA Energy Cooperative is a rural electric utility serving seven Western Pennsylvania counties (Armstrong, Blair, Cambria, Clearfield, Indiana, Jefferson, and Westmoreland). The company operates a single-tier product architecture centered on electricity distribution (Electric Service), augmented by a subsidiary (REA Energy Services) providing HVAC, electrical contracting, generators, surge protection, and tree trimming. In 2022, it acquired In The Stix Broadband LLC (ITX), a subsidiary ISP offering internet and phone services. Member-facing digital services include SmartHub portal and mobile apps for billing and account management. Load management programs (Dual Fuel/ETS and Hot Water Heater) help manage peak demand. The cooperative also provides energy efficiency resources, Youth Tour educational programs, Co-op Connections discount cards, and community publications (Penn Lines). Capital credits and Operation Round-Up programs return value to members.

Differentiator

Problem solved

Functional benefit

Products and services

• Electric Service Core electricity distribution service for residential and commercial members across seven Western Pennsylvania counties, including new service installation, existing service transfers, underground service, and distributed generation connections.
• Hot Water Heater Load Management Program

Named customers1 record

Segments4 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature4 records

Partnerships

Five partnerships are on record, tiered major, core and minor.

• Indiana County Board of CommissionersmajorStrategic or Co-development Partner · 1 June 2023Indiana County Board of Commissioners voted to approve a contract with REA Energy and In The Stix Broadband to build approximately 130 miles of fiber optic cabling throughout Indiana County as an investment toward total fiber infrastructure.
• In The Stix Broadband LLC (ITX)coreOthers · 1 June 2022Acquired in June 2022, ITX is an independent ISP operating since 2008 on the Cambria Connect network. Offers internet, phone, and IT services to residential and commercial customers. Operated as a subsidiary of REA Energy.
• Touchstone Energy CooperativescoreStrategic or Co-development PartnerNational network of electric cooperatives providing resources, brand identity, and collaborative partnerships. Touchstone Energy is a national brand for electric cooperatives committed to high standards of service, integrity, accountability, innovation, and community focus. REA Energy operates under this cooperative network spanning over 700 local systems serving 30.5 million member-owners.
• Pennsylvania Rural Electric Association (PREA)coreStrategic or Co-development PartnerPREA is the state association of rural electric cooperatives. REA Energy contributes articles to PREA's Penn Lines magazine and participates in PREA programs including Youth Tour scholarships and the PREA Director position held by board member Wayne Farabaugh.
• Co-op Connections PartnersminorGTM or Marketing PartnerNational network of over 24,000 local and national deals, discounts on prescription drugs at over 60,000 locations. Consumers have saved over $60 million on prescriptions through this program.

Scale indicators6 records

Recent moves6 records

Expansion highlights6 records

Direct peers

• Citizens' Electric Company: Pennsylvania-focused electric distribution utility serving rural and small-town customers with comparable residential/commercial mix. Comparable distribution-only regulated model at small-to-mid scale.
• Central Electric Cooperative (Pennsylvania): Pennsylvania rural electric distribution cooperative serving members across rural counties. Directly comparable member-owned co-op distribution model with similar Touchstone Energy affiliation, member services, and load-management programs.
• Allegheny Electric Cooperative: Pennsylvania generation-and-transmission cooperative supplying wholesale power to distribution co-ops like REA Energy. Highly comparable cooperative structure and overlapping Pennsylvania footprint, though at the G&T level.
• Somerset Rural Electric Cooperative: Pennsylvania rural electric cooperative serving southwestern counties of the state with a similar single-tier electric distribution model and member-focused programs. Operates at a comparable scale and customer count.
• Tri-County Rural Electric Cooperative (Pennsylvania): Closely adjacent rural electric co-op also operating in Western/Central Pennsylvania with comparable cooperative structure, kWh-scale, and broadband-adjacent services — a near-clone of REA Energy's operating model.

Broad incumbents

• PPL Electric Utilities: Large investor-owned electric distribution utility operating in Pennsylvania. Compares as a broad incumbent serving overlapping/adjacent Pennsylvania service territory with the same regulated wire-services business.
• FirstEnergy (Penelec): Investor-owned utility (and Penelec subsidiary) serving much of Pennsylvania including overlapping Western PA territory. Broad incumbent in the same regulated electric distribution space, though at dramatically larger scale and with non-cooperative ownership.

Others

• Touchstone Energy Cooperatives (network): National brand network of 700+ electric cooperatives including REA Energy itself. Relevant as the shared services, branding, and Co-op Connections partner — an ecosystem participant rather than a competitor.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat6 records

Key risks6 records

Key highlights7 records

Customer concentration

Revenue estimate

Valuation estimate

Number of profiles

Profiles8 records

Subsidiaries2 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about REA Energy