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Serving: United States
Steel transmission towers in evening or morning light. Yelantsevv/Thinkstock

USDA invests to upgrade rural electric systems

13 states receive $485 million to rebuild 2,635 miles of transmission line

USDA is investing $485 million to upgrade rural electric systems and reduce energy costs. The funding includes nearly $7.1 million for smart grid technologies that improve system operations and monitor grid security.

“These loans will enhance rural economic development and help improve the quality of life for people who live and work in rural America,” said Acting Assistant to the Secretary for Rural Development Joel Baxley.

USDA is providing financing through the Electric Loan Program to help build or improve 2,635 miles of transmission line in the following states:

  1. Georgia,
  2. Illinois,
  3. Iowa,
  4. Michigan,
  5. Minnesota,
  6. Mississippi,
  7. Missouri,
  8. New Mexico,
  9. North Carolina,
  10. North Dakota,
  11. South Dakota,
  12. Texas and
  13. Wisconsin.

Project examples

South Dakota’s Northern Electric Cooperative is receiving a $24.8 million loan to build or improve 360 miles of line. The loan includes $351,000 to incorporate smart grid technologies such as computer applications, two-way machine-to-machine communications, geospatial information systems and other tools to increase the reliability and efficiency of electric power systems. Northern Electric serves more than 6,300 consumers over 2,600 miles of line in 10 counties in northeastern South Dakota and one county in southern North Dakota.

Missouri’s Central Electric Power Cooperative is receiving a $72 million loan to finance electric distribution and transmission facilities. The upgrades will supply peak loads, conform to safety requirements and improve the reliability and resiliency of the transmission system. Central Electric also will construct backup control center facilities to ensure the continuity of operations in the event of catastrophe. It serves approximately 187,000 residential and business consumers across 22,000 square miles in 28 counties in central Missouri.

USDA Rural Development provides loans and grants to help expand economic opportunities and create jobs in rural areas. This assistance supports infrastructure improvements; business development; housing; community facilities such as schools, public safety and health care; and high-speed internet access in rural areas. For more information, visit

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