In 1937, correspondence was exchanged between Mr. J. S. Knowlson and Colonel J. L. Montague concerning the need for rural electricity in Bath County. Upon request by Mr. Knowlson to the Rural Electrification Administration (REA), information was sent by Mr. Boyd Fisher to Colonel Montague who was the Bath County Agent. This information included guidelines for organizing a cooperative, making a loan, and surveying the prospective members who wished to receive electric service. The gentlemen were referred to Mr. L. E. Long of Harrisonburg and Mr. James H. Rogers of Big Island as assistance was desired from those with personal experience.

In one letter, Colonel Montague stated a preliminary survey had been made for the Cow Pasture River neighborhood covering 43 miles of proposed electric lines, averaging 3 consumers per mile at a cost of approximately $3 per month for each consumer. If the line developed a heavier load in years to come, the rate would be reduced. REA would not approve building this line because it called for erecting an additional power plant in connection with the Lowman Mill at Millboro Springs. If the line was to be built, a cooperatively-owned line would be necessary which could be financed entirely through REA.

In order to obtain the loan, a cooperative and board of directors comprised only of paid members would need to be formed. This was done and REA considered the project. On March 3, 1938, REA contracted to build lines in Bath, Alleghany and Rockbridge Counties (thus the name BARC Electric Cooperative). The Cooperative then went about obtaining applications for electric service, membership fees, easements, an attorney, incorporation and financing.

Later in March, the first meeting was called to elect directors, three from each of the counties of Bath, Rockbridge and Alleghany. The certificate of Incorporation was granted on April 19, 1938. The first annual meeting of members was held in Lexington, VA on January 30, 1939. In 1940, additional financing was approved by the REA to build 182 additional miles of line and to provide service to farmers in Bath, Alleghany, Rockbridge, Augusta and Highland Counties.

BARC has grown from 1008 meters connected in 1940 to over 12,000 meters today.