Agriculture Secretary Tom Vilsack today announced $2.3 billion in loans to build and improve rural electric infrastructure in 31 states, including a $4.2 million loan to Craig-Botetourt Rural Electric Cooperative.
“We are proud to help provide investment capital for improvement of electric infrastructure in this beautiful part of western Virginia,” said Basil Gooden, Ph.D., Virginia state director, USDA Rural Development. “Where commercial capital is not readily available we help provide opportunity for economic development and improved quality of life for our residents. A seamless, smart energy infrastructure should be available in every corner of our commonwealth.”
CBEC serves more than 6,500 members in the rural sections of Alleghany, Botetourt, Craig, Giles, Montgomery, Roanoke and Monroe, W.V. The $4.2 million guaranteed loan will finance 47 miles of new line and 26 miles of conversions or upgrades.
More than $800,000 of the loan will finance smart grid technologies. Smart grid increases the reliability of electric power by helping utilities better manage the electric grid to improve operational efficiencies. These technologies can also help predict future electric needs.
“Improving our rural electric utility systems will help us continue to provide reliable and affordable electricity to rural customers,” Vilsack said. “By financing these improvements, USDA helps increase efficiencies, reduce carbon emissions and improve the quality of life in rural areas.”
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.
Funding of each award announced today is contingent upon the recipient meeting the terms of the loan or grant agreement.
Since 2009, USDA has funded $34 billion in electric loans and more than $1 billion for smart grid technologies nationwide. This assistance has helped build more than 185,000 miles of transmission and distribution lines serving approximately 8.5 million rural customers.
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.
President Obama’s plan for rural America has brought about historic investment and resulted in stronger rural communities. Under the President’s leadership, these investments in housing, community facilities, businesses and infrastructure have empowered rural America to continue leading the way – strengthening America’s economy, small towns and rural communities.