WASHINGTON, Jan. 30, 2023 – U.S. Department of Agriculture (USDA) Secretary Tom Vilsack today announced the Department is investing $2.7 billion to help 64 electric cooperatives and utilities (PDF, 175 KB) expand and modernize the nation’s rural electric grid and increase grid security.
“These critical investments will benefit rural people and businesses in many ways for decades to come,” Vilsack said. “This funding will help rural cooperatives and utilities invest in changes that make our energy more efficient, more reliable, and more affordable. Investing in infrastructure – roads, bridges, broadband and energy – supports good-paying jobs and keeps the United States poised to lead the global economy.”
USDA is investing in 64 projects through the Electric Loan Program. This funding will benefit nearly 2 million rural people and businesses in Alabama, Arkansas, Colorado, Florida, Georgia, Iowa, Indiana, Kentucky, Michigan, Minnesota, Mississippi, Montana, Nebraska, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, South Carolina, South Dakota, Tennessee, Texas, Virginia, Washington and Wisconsin.
The loans include $613 million to help rural utilities and cooperatives install and upgrade smart grid technologies. Smart grid can be a catalyst for broadband and other telecommunications services in unserved and underserved rural areas in addition to improving grid security and reliability.
Nearly half of the awards will help finance infrastructure improvements in underserved communities.
Below are some examples of how the funding will be used:
- The Northern Virginia Electric Cooperative is receiving a $111 million loan to connect 1,264 consumers and build and improve 404 miles of line. The loan includes $13.4 million for smart grid technologies. Northern Virginia Electric, headquartered in Manassas, serves 176,604 consumers over 7,614 miles of line in six counties.
- The Carteret-Craven Electric Membership Cooperative in Newport, North Carolina, is receiving a $28 million loan to connect 3,115 consumers and build and improve 132 miles of line. The loan includes $169,437 for smart grid technologies. Carteret-Craven Electric serves 41,655 consumers through 2,493 miles of line in four counties in southeastern North Carolina.
- Minnesota’s Beltrami Electric Cooperative is receiving a $22.7 million loan to connect 1,480 consumers and build and improve 225 miles of line. The loan includes $1.3 million for smart grid technologies. Beltrami Electric is headquartered in Bemidji, Minnesota. It serves 21,772 consumers in portions of Beltrami, Cass, Clearwater, Hubbard, Itasca and Koochiching counties with 3,500 miles of distribution line covering approximately 3,000 square miles.
In the coming months, USDA will announce additional energy infrastructure financing. The Biden-Harris Administration’s Inflation Reduction Act provided more than $12 billion to USDA for loans and grants to expand clean energy, transform rural power production, create jobs and spur economic growth. This funding will help make energy cleaner, more reliable and more affordable.
USDA’s Electric Loan Program can help finance wind, solar and natural gas plants, as well as improvements to produce cleaner 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.
Under the Biden-Harris Administration, 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.
USDA touches the lives of all Americans each day in so many positive ways. Under the Biden-Harris Administration, USDA is transforming America’s food system with a greater focus on more resilient local and regional food production, promoting competition and fairer markets for all producers, ensuring access to safe, healthy and nutritious food in all communities, building new markets and streams of income for farmers and producers using climate-smart food and forestry practices, making historic investments in infrastructure and clean energy capabilities in rural America, and committing to equity across the Department by removing systemic barriers and building a workforce more representative of America. To learn more, visit www.usda.gov.
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USDA is an equal opportunity provider, employer, and lender.
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Author: USDA Latest News Releases