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USDA Invests $42.7 Million to Improve and Modernize Rural Electric Infrastructure After Severe Weather and Age Test the Grid

Name
Nikki Gillespie
City
ST. PAUL
Release Date

Investments will Benefit 16,500 Rural Residents and Businesses

ST. PAUL, Minn., March 17, 2021 – The U.S. Department of Agriculture (USDA)  Acting State Director for Rural Development in Minnesota Cynthia Morales announced today $42.7 million in rural electric investments to build or improve electric infrastructure in 17 counties across southern Minnesota.

“Providing critical financial assistance for rural families and community infrastructure provides continued opportunities for growth,” said Morales. “These Rural Development investments will bring affordable electric power to schools, community facilities and medical institutions – improving their ability to provide these essential public services as well as the quality of life for more than 16,000 rural residents.”

Background:

USDA is investing in 11 projects nationwide through the Electric Loan Program. This funding will benefit 460,000 rural residents and businesses in Arizona, Kentucky, Maine, Minnesota, Missouri, New Mexico, North Dakota, Oklahoma, South Carolina, Utah and Virginia. Several of the loans will help expand smart grid technologies, which can be a catalyst for broadband and other telecommunications services in unserved and underserved rural areas.

Below are some examples of how the funds will be used:

  • Minnesota Valley Cooperative Light & Power will use a $22.8 million loan to connect 132 consumers and build and improve 137 miles of line. This loan includes $1.3 million in smart grid technologies. Headquartered in Montevideo, Minnesota Valley serves 5,282 customers over 3,263 miles of line in eight counties in southwestern Minnesota.
     
  • Steele-Waseca Cooperative Electric will use a $19.9 million loan to connect 141 consumers and build and improve 71 miles of line. This loan includes $2.5 million in smart grid technologies. Headquartered in Owatonna, Steele-Waseca serves more than 11,000 customers through 2,022 miles of line in nine counties in southeast Minnesota.
     

USDA’s Electric Loan Program helps finance wind, solar and natural gas plants, as well as improvements to produce clean energy from coal-fired plants. Local utilities also use the loans to invest in infrastructure to deliver affordable power to millions of residential, commercial and agricultural consumers.

To learn more about electric infrastructure and other investment resources for rural areas, contact the USDA Rural Development General Field Representative in Minnesota.

USDA Rural Development provides loans and grants to help expand economic opportunities, create jobs and improve the quality of life for millions of Americans in rural areas. This assistance supports infrastructure improvements; business development; housing; community facilities such as schools, public safety, and health care; and high-speed internet access in rural, Tribal and high-poverty areas. For more information, visit www.rd.usda.gov/mn. If you’d like to subscribe to USDA Rural Development updates, visit our GovDelivery subscriber page. Follow @RD_Minnesota on Twitter.

Contact

USDA Rural Development has 11 offices throughout Minnesota: Alexandria, Baxter, Bemidji, Cambridge, Detroit Lakes, Faribault, Marshall, Thief River Falls, Virginia, Willmar, and Worthington.