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USDA Awards Nearly $222 Million in Loans for 16 Rural Electric Infrastructure Projects

Name
Nikki Gillespie
City
ST. PAUL
Release Date

USDA Rural Development State Director Colleen Landkamer today announced nearly $222 million in loans to build and improve rural electric infrastructure in rural communities throughout Minnesota.

"These investments will help Minnesota’s rural electric utility companies continue to provide reliable and affordable electricity to rural customers," Landkamer said. "Through these improvements, USDA helps increase efficiencies and improves the quality of life and economic sustainability of rural communities for years to come."

USDA is awarding loans to 16 utilities and cooperatives throughout Minnesota. The funding includes more than $48 million for smart grid technology and $6.4 million for storm damage repairs. These loans will help build or improve 3,303 miles of transmission and distribution lines.

The funding is being provided through USDA Rural Development's Electric Program, which makes loans and loan guarantees to non-profit and cooperative associations, public bodies and other utilities, primarily for electric distribution in rural areas.

For example, Freeborn-Mower Electric Cooperative in Albert Lea, which serves more than 6,000 members and over 1,335 square miles in Minnesota and Iowa, is receiving a $50.4 million loan to improve service to its customers. It will use $903,000 to finance smart grid technologies.

Smart grid increases the reliability of electric power by helping utilities better manage the electric grid to improve operational efficiencies. It includes metering, substation automation, computer applications, two-way communications, geospatial information systems and other improvements.

In Oronoco, USDA is providing a $28.5 million loan to the People’s Energy Cooperative to fund more than 165 miles of new or upgraded power lines. The utility distributes power to more than 19,000 members in Dodge, Fillmore, Mower, Olmsted, Wabasha, and Winona Counties.

Nobles Cooperative Electric is receiving nearly $11 million to build or improve 110 miles of line and make other system improvements including $375,000 for smart grid projects and $4.7 million for restoration due to storm damage.

Nationwide, USDA is awarding loans to 77 utilities and cooperatives in 31 states – totaling more than $2.2 billion. The funding includes more than $108 million for smart grid technology, $41 million for renewable energy improvements and $9 million for storm damage repairs. These loans will help build or improve 12,000 miles of transmission and distribution lines.

USDA has been committed to improving the production and transmission of electricity in rural communities since the creation of the Rural Electrification Administration in 1935.

Since 2009, USDA has funded $34 billion in electric loans nationwide - $767.5 million in Minnesota alone - and more than $1 billion for smart grid technologies. This assistance has helped build more than 185,000 miles of transmission and distribution lines serving approximately 8.5 million rural customers.

For more information on USDA Rural Development’s Electric Program, please visit www.rd.usda.gov and contact your local General Field Representative.