Financing distribution of electric energy to rural areas in developing countries is a relatively recent activity. The United States Agency for International Development (AID) was the first to loan funds for this purpose. In 1963 it authorized $400, 000 to establish an electric cooperative in Nicaragua. Since then 15 loans have been made by AID for establishing or expanding electric service in nonurban areas of nine countries in Latin America. In this book, the emphasis has been placed on identifying benefits and, within the time and resources available, developing social indicators to place beside economic measurements. The authors have attempted to write this report in as nontechnical a style as possible and to provide a full exposition of all variables and methods employed so as to make it accessible to a general audience.