Agriculture Secretary Tom Vilsack announced Thursday that rural electric utilities in 18 states will receive loan guarantees to make improvements to electric lines, transmission facilities and to reduce peak electric loads by deploying smart grid technologies. USDA Rural Utilities Administrator Jonathan Adelstein made the announcement on Vilsack’s behalf while visiting the offices of one of the recipients in Virginia.
“Maintaining and upgrading rural electric systems improves system reliability, creates jobs and supports economic development,” Vilsack said. “With these loans, we are continuing to help cooperatives provide reliable service to rural residents. A significant portion of this funding will go to smart grid technologies, helping consumers lower their electric bills and reducing peak demand for producers.”
With this funding, USDA Rural Development moves closer to reaching Secretary Vilsack’s goal to fund more than $250 million for smart grid technologies. The announcement includes support for nearly $29 million in smart grid projects. In all, USDA is investing more than $420 million in rural electric infrastructure.
In Texas, Comanche County Electric Cooperative Association was awarded $18,469,000 in funding through this announcement. Funds will be used to build and improve 143 miles of distribution line and make other system improvements, serving 1,068 customers. The loan includes $6,551,790 in smart grid projects.
“Electric cooperatives provide a vital service to rural Texas communities,” said Paco Valentin, USDA Rural Development Texas State Director. “USDA Rural Development is pleased to assist Comanche County Electric Cooperative Association improve the efficiency of valuable and reliable services to rural homeowners, farms and businesses.”
Funding is provided by USDA Rural Development’s Rural Utilities Service (RUS). The loans help electric utilities upgrade, expand, maintain and replace rural America’s electric infrastructure. USDA Rural Development also supports energy conservation and renewable energy projects.
President Obama’s plan for rural America has brought about historic investment and resulted in stronger rural communities. Under the President’s leadership, these investments in housing, community facilities, businesses and infrastructure have empowered rural America to continue leading the way – strengthening America’s economy and strengthening small towns and rural communities. USDA’s investments in rural communities support the rural way of life that stands as the backbone of our American values. President Obama and Agriculture Secretary Tom Vilsack are committed to a smarter use of Federal resources to foster sustainable economic prosperity and ensure the government is a strong partner for businesses, entrepreneurs and working families in rural communities.
USDA, through its Rural Development mission area, has an active portfolio of more than $170 billion in loans and loan guarantees. These programs are designed to improve the economic stability of rural communities, businesses, residents, farmers and ranchers and improve the quality of life in rural America.