Agriculture Secretary Tom Vilsack this week announced that the U.S. Department of Agriculture (USDA) is providing $3.6 billion in loans to fund 82 electric projects in 31 states. These loans will finance infrastructure upgrades, create jobs and improve system operations for rural electric customers nationwide.
Four Virginia electric cooperatives – BARC Electric, Central Virginia Electric, Northern Neck Electric and the National Rural Utilities Finance Corporation – received $445 million of today’s announced funding.
“For 80 years, rural electric utilities have provided reliable and affordable electricity to help rural communities increase productivity and build stronger economies,” Vilsack said. “These loans will help them continue to do that. The utilities and cooperatives will use some of the money to finance energy efficiency projects, renewable fuel systems and smart grid technologies to increase our energy independence and improve rural electric infrastructure.”
The $445 million will build or improve 459 miles of transmission and distribution line. It includes $2.4 million for smart grid technologies and $375 million for rural electric cooperative infrastructure relending.
The loans are being provided through the Electric Program of the Rural Utilities Service, the successor to the Rural Electrification Administration. Eighty years ago this spring, President Roosevelt signed the law that charged USDA to provide electric power to rural America. The Electric Program makes loans and loan guarantees to non-profit and cooperative associations, public bodies and other utilities.
Improvements to rural electric utility systems help to provide reliable and affordable electricity to rural customers, increasing efficiencies, reducing carbon emissions and improving the quality of life in rural areas.
Today’s announcement is part of USDA’s celebration of National Cooperative Month throughout October. This year’s theme is “Cooperatives Build.”
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Barc Electric Cooperative |
$11,162,000 |
To build or improve 63 miles of line, and make other system improvements. The loan amount includes $642,320 for smart grid projects. |
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Barc Electric Cooperative |
$17,000,000 |
To construct Phase 1 of a system-wide fiber-optic communication network. |
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Central Virginia Electric Cooperative |
$23,800,000 |
To build or improve 307 miles of line, and make other system improvements. The loan amount includes $1,186,040 for smart grid projects. |
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Northern Neck Electric Cooperative |
$18,500,000 |
To build or improve 89 miles of line, and make other system improvements. The loan amount includes $605,100 for smart grid projects. |
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National Rural Utilities Finance Corporation |
$375,000,000 |
To provide a loan guarantee to National Rural Utility Cooperative Financing Corporation for rural electric cooperative infrastructure relending. |
USDA Rural Development in 2015 invested more than $1 billion in rural Virginia through 40 loan, grant and loan guarantee programs in housing, business, agriculture, energy, health care and community facilities. It has employees stationed in 14 offices across the commonwealth to better serve residents where they live and to improve the economy and quality of life in rural Virginia.