The United States has been involved in providing electricity to rural areas for a long time. In 1933, President Roosevelt signed the Tennessee Valley Authority Act creating the TVA, designed to modernize the region, using experts and electricity to combat economic problems. TVA generated electricity from dams it constructed on area rivers. By providing electricity, farms could get modern home appliances, making the lives of residents easier and farms more productive. The available electricity attracted new industries to the region, providing desperately needed jobs.

Today, the USDA (U.S. Dept of Agriculture) is investing $3.1 billion to build or improve rural electric infrastructure in 25 states. USDA’s Electric Program helps finance wind, solar and natural gas plants, as well as improvements to produce clean energy from coal-fired plants. The department invested $6.3 billion in the Electric Loan Program in FY 2020, up from $5.8 billion in 2019.

Almost 10% of total loans by dollar will help expand smart grid technologies. Smart grid can be a catalyst for broadband and other telecommunications services in unserved and underserved rural areas. These loans will finance nearly 23,000 new line-miles of smart grid fiber when buildout is complete.

For example, Southwest Arkansas Electric Cooperative Corp., which serves an average of 28,310 members over 5,000 miles of line, will use a $81 million loan to connect 1,740 consumers and build and improve 121 miles of line. This loan includes $9,187,114 in smart grid technologies.

Houston County Electric Cooperative will use a $24.7 million loan to connect 2,000 consumers and build and improve 421 miles of line. This loan includes $1,640,000 in smart grid technologies.

San Patricio Electric Cooperative will use a $19.2 million loan to connect 788 consumers and build and improve 158 miles of line. This loan includes $357,600 in smart grid technologies.

Arkansas Electric Cooperative will use a $129 million loan to finance generation system improvements. Arkansas Electric, based in Little Rock, Arkansas provides wholesale electric service to 17 electric distribution cooperative members serving 74 Arkansas counties.

During FY 2020, USDA also approved nearly $104 million in loans for 11 energy efficiency programs under the Rural Energy Savings Program and $11.7 million in High Energy Cost Grants to rural communities and villages in Alaska to lower the cost of energy consumption and upgrade aging generation systems.

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