Agriculture Secretary Tom Vilsack has announced $2.3 billion in loans to build and improve rural electric infrastructure in 31 states.
“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.”
USDA is awarding loans to 77 utilities and cooperatives in 31 states. The funding includes $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.
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.
In Wisconsin, St. Croix Electric Cooperative is receiving an $8.5 million loan to improve service to its customers by adding 128 miles of line. It will use nearly $2.5 million 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 addition, Oconto Electric Cooperative is receiving a $10 million to add 73 miles of new line, using $307,750 to finance smart grid technologies; and Scenic Rivers Energy Cooperative will use a $13 million loan to add 92 miles of new line in Wisconsin and Minnesota. Approximately $5 million will be used toward smart grid technologies.
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. 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.
USDA Rural Development’s mission is to deliver programs in a way that will support increasing economic opportunity and improve the quality of life of rural residents. As the lead federal agency for rural development needs, USDA Rural Development can help rural communities and regions grow and prosper by offering a variety of financial and technical assistance programs that encourage the development of strong community and economic development strategies.
During this past year, USDA Rural Development’s $571 million investment in Wisconsin helped create or retain nearly 1,380 jobs, aided 3,600 families in buying their own homes and assisted more than 50 communities as they made improvements to their facilities, services and infrastructure.
Further information on USDA Rural Development is available at a local USDA Rural Development office or by visiting the web site at www.rd.usda.gov/wi.