Smart Grid Observer

Smart Grid Observer

USDA Invests in Rural Electric Infrastructure Improvements in 10 States

Source: Smart Grid Observer

Investments will Benefit 213,295 Residents and Businesses

August 13, 2019 -- U.S. Department of Agriculture Rural Utilities Service Administrator Chad Rupe recently (8/9) announced that USDA is investing $181 million to upgrade rural electric systems in 10 states. The funding includes $7.7 million to finance smart grid technologies that improve system operations and monitor grid security.

'For more than eight decades, USDA has been a strong partner to rural communities in building and expanding electric infrastructure,' Rupe said. 'USDA is committed to investing in essential infrastructure upgrades that improve the quality of life in rural communities and help grow the rural economy.'

USDA is providing financing for 12 projects in Arkansas, Georgia, Indiana, Iowa, Kansas, Kentucky, Ohio, South Dakota, Texas and Wisconsin through the Electric Loan Program. The funding will help build and improve 1,354 miles of line to improve electric reliability and resilience in rural areas.

Among the loans announced, Ohio's Buckeye Rural Electric Cooperative is receiving $19.7 million to build and improve 96 miles of line. The upgrades will serve 600 new customers. Buckeye also will invest $327,000 in smart grid technologies to increase system efficiency and resilience. It serves more than 18,600 customers over 2,500 miles of line in nine counties in eastern Ohio.

The Licking Valley Rural Electric Cooperative in West Liberty, Ky., is also receiving a $19.7 million loan. It will build and upgrade 74 miles of line and install nearly $338,000 in smart grid technologies. These investments will serve 17,300 residential and business consumers over 2,072 miles of line in Breathitt, Elliot, Lee, Magoffin, Menifee, Morgan, Rowan and Wolfe counties.

USDA will make additional funding announcements in coming weeks. Congress appropriated $5.5 billion for USDA's Electric Loan Program in fiscal year 2019.

In April 2017, the Interagency Task Force on Agriculture and Rural Prosperity was established to identify legislative, regulatory and policy changes that could promote agriculture and prosperity in rural communities. In January 2018, the Task Force's findings included 31 recommendations to align the federal government with state, local and tribal governments to take advantage of opportunities that exist in rural America. Increasing investments in rural infrastructure is a key recommendation of the task force.

The entire Report to the President of the United States from the Task Force on Agriculture and Rural Prosperity can be viewed here. To view the categories of the recommendations, see the Rural Prosperity infographic here.

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