Agriculture Secretary Tom Vilsack recently announced that the United States Department of Agriculture (USDA) plans to invest more than $518 million in rural electric cooperatives, with the goal of improving the delivery of electric power to communities in 15 states. This funding is part of nearly $50 billion that USDA has invested in infrastructure improvements since 2009.

More than $23 million of the funding is targeted for smart grid improvements, which better manage and increase efficiencies in America’s electric system. Smart grid technologies — such as automated meter reading and load management automation — allow for more efficient control over the use of power to better meet customers' needs. The latest investments are being provided through USDA’s Rural Utilities Service (RUS), which also administers infrastructure programs that bring broadband, safe drinking water and improved wastewater treatment facilities to rural communities.

“We must invest in America’s infrastructure to promote sustainable economic development in our rural and urban communities,” said Vilsack during a White House summit on infrastructure financing. “Enhancements to the nation’s electric grid make a huge difference for communities across the country and support President Obama's efforts to build a stronger rural economy.”

The newly announced loan guarantees for electric systems will build or improve more than 5,600 miles of line in rural areas. For example, in New Mexico, a $14.1 million loan will fund a 1 MW photovoltaic facility, 74 miles of line, and make other system improvements. The loan includes $518,400 for smart grid projects and $3.4 million for the renewable project. The Carroll Electric Membership Corporation in Carrollton, Ga., will receive $20.6 million to build or upgrade 441 miles of line and devote $93,000 to smart grid technology.