Funding Will Benefit Consumers in Northeast New Mexico
SAN DIEGO, March 6, 2012 Agriculture Secretary Tom Vilsack today announced that ten rural electric cooperative utilities in nine states will receive funding to install smart grid technologies and make improvements to generation and transmission facilities.
“By financing electrical system improvements, the Obama Administration is helping to ensure sustainable economic growth through job creation and business expansion,” Vilsack said. “Investments in smart grid technologies give rural electric utilities and their consumers one more tool to better manage their use of electricity, increase reliability of the electric grid and lower overall costs.”
USDA Rural Development Under-Secretary Dallas Tonsager made the announcement on Vilsack's behalf during a speech here today at the 70th annual meeting of the National Rural Electric Cooperative Association.
One of the electric cooperatives receiving funding from this announcement is the Southwestern Electric Cooperative based in Clayton, New Mexico.
Upon hearing about the award, USDA Rural Development State Director Terry Brunner said, "This investment will help address the growing need for electric service in the north east part of the state and by doing so the new infrastructure can ultimately create new jobs because of the increased electric capacity.”
The $6,646,000 financing being made to Southwestern Electric Cooperative, Inc. is from a USDA Rural Development's Rural Utilities Service (RUS) loan guarantee. The financing will be used to construct new distribution lines which will serve 227 consumers including the installation of new meters and transformers and 13 miles of system improvements. The funding includes $700,000 in smart grid technology. This technology is designed to modernize the existing utility grid to improve the efficiency of the delivery of electricity to homes and businesses.
The $151 million in loans announced today, includes nearly $20 million in Smart Grid technologies, and are provided by USDA Rural Development's Rural Utilities Service (RUS). The funding helps electric utilities upgrade, expand, maintain and replace rural America's electric infrastructure. USDA Rural Development also funds energy conservation and renewable energy projects.
The following is a list of rural utilities that will receive USDA funding, which is contingent upon the recipient meeting the terms of the loan agreement.
Florida
Gulf Coast Electric Cooperative, Inc. - $19,922,000. Funding will be used to build and improve 274 miles of distribution line and make other system improvements. The loan amount includes $2,397,027 in smart grid projects.
Georgia
Upson Electric Membership Corporation - $3,925,000. Funding will be used to build and improve 94 miles of distribution line and make other system improvements.
Kansas
Kansas Electric Power Cooperative, Inc. - $23,294,000. Funding will be used to make capital additions and upgrades at the Wolf Creek Generation Station, a nuclear power generating facility.
Mississippi
Dixie Electric Power Association - $29,079,000. Funding will be used to build and improve 301 miles of distribution line and make other system improvements.
Magnolia Electric Power Association - $30,000,000. Funding will be used to build and improve 251 miles of distribution line and make other system improvements. The loan amount includes $5,414,200 in smart grid projects.
New Mexico
Southwestern Electric Cooperative, Inc. - $6,646,000. Funding will be used to build and improve 65 miles of distribution line and make other system improvements. The loan amount includes $699,560 in smart grid projects.
North Carolina
Roanoke Electric Membership Corporation - $16,820,000. Funding will be used to build and improve 106 miles of distribution line and make other system improvements. The loan amount includes $156,100 in smart grid projects.
Ohio
Darke Rural Electric Cooperative, Inc. - $5,620,000. Funding will be used to build and improve 69 miles of distribution line and make other system improvements. The loan amount includes $637,360 for smart grid projects.
South Dakota
Codington-Clark Electric Cooperative, Inc. - $9,013,000. Funding will be used to build and improve 87 miles of distribution line and make other system improvements. The loan amount includes $965,953 in smart grid projects.
Tennessee
Tennessee Valley Electric Cooperative - $6,912,000. Funds will be used to build and improve 406 miles of distribution line and make other system improvements.
Since taking office, President Obama's Administration has taken significant steps to improve the lives of rural Americans and has provided broad support for rural communities. The Obama Administration has set goals of modernizing infrastructure by providing broadband access to 10 million Americans, expanding educational opportunities for students in rural areas and providing affordable health care. In the long term, these unparalleled rural investments will help ensure that America's rural communities are repopulating, self-sustaining and thriving economically.
USDA, through its Rural Development mission area, administers and manages housing, business and community infrastructure and facility programs through a national network of state and local offices. Rural Development has an existing portfolio of more than $165 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.