WASHINGTON, March 13, 2018 – U.S. Secretary of Agriculture Sonny Perdue announced today (Tuesday), that the U.S. Department of Agriculture (USDA) is investing $276 million in rural electric infrastructure to improve system efficiency and reliability. The announcement comes the day before Secretary Perdue is set to testify along with others, at a Senate Committee on Commerce, Science and Transportation hearing focused on rebuilding American infrastructure. 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. Locally, the Southwest Iowa Rural Electric Cooperative is set to receive a $6.1-million dollar loan to build 69 miles of line, improve 96 miles. and make other system improvements.

The loan amount includes $775,000 for Smart Grid projects. Smart grid includes technological enhancements such as metering, substation automation, computer applications, two-way communications and geospatial information systems. The Southwest Iowa REC serves 5,574 residents and nearly 300 commercial consumers. Of the 11 counties served in southwest Iowa, six are designated as outmigration counties.

Secretary Perdue said “Investing in our nation’s electric infrastructure is fundamental for rural economic growth. 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.”

Investments are being made in Iowa and 11 other states. The loan guarantees are being provided through USDA Rural Development’s Electric Program, which is the successor to the Rural Electrification Administration.