USDA invests $276 million in rural electric infrastructure

Published 8:13 am Wednesday, March 14, 2018

WASHINGTON — U.S. Secretary of Agriculture Sonny Perdue announced Tuesday the U.S. Department of Agriculture (USDA) is investing $276 million in rural electric infrastructure to improve system efficiency and reliability.

This announcement came the day before Secretary Perdue is set to testify alongside Secretaries Wilbur Ross, Alexander Acosta, Elaine Chao and Rick Perry at a Senate Committee on Commerce, Science and Transportation hearing focused on rebuilding American infrastructure.

“Investing in our nation’s electric infrastructure is fundamental for rural economic growth,” Secretary Perdue said in a press release. “USDA’s longstanding partnerships with rural electric cooperatives help ensure that rural areas have affordable, reliable electric service. These investments also increase efficiency and productivity for businesses and residents, and support the quality of life in rural America.”

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USDA’s $276 million investment will build nearly 1,000 miles of line and improve 733 miles of line to meet current and future needs of rural businesses and residents. It will also support $65 million in smart grid technologies to help rural electric utilities reduce outages and integrate new systems.

Smart grid includes technological enhancements such as metering, substation automation, computer applications, two-way communications and geospatial information systems.

Investments are being made in Colorado, Georgia, Indiana, Iowa, Kentucky, Louisiana, Maine, Minnesota, Missouri, North Dakota, Ohio and Virginia. The loan guarantees are being provided through USDA Rural Development’s Electric Program, which is the successor to the Rural Electrification Administration.

In April 2017, President Donald J. Trump established the Interagency Task Force on Agriculture and Rural Prosperity to identify legislative, regulatory and policy changes that could promote agriculture and prosperity in rural communities. In January 2018, Secretary Perdue presented the Task Force’s findings to President Trump.

These 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.