USDA investments will help utility providers and electric cooperatives build and improve electric infrastructure
HURON, S.D., March 7, 2024 – U.S. Department of Agriculture (USDA) Rural Development State Director Nikki Gronli announced today that the Department is investing more than $282 million to improve access to reliable electricity for rural South Dakotans.
“USDA is committed to creating a path toward a cleaner, more sustainable future by investing in renewable energy technology and infrastructure that will create lasting economic prosperity,” State Director Gronli said. “These projects will reduce costs for rural residents, prevent power outages in the face of extreme weather and strengthen the nation’s energy independence.”
USDA is financing today’s projects through the Electric Infrastructure Loan and Loan Guarantee program.
Lake Region Electric Association (LREA) will use $10 million to build and improve nearly 70 miles of power lines and connect 185 customers to reliable electricity. Nearly $2.7 million from this investment will be used to help advance smart grid technologies. LREA is headquartered in Webster, serving an average of 3,400 customers over 1,654 miles of line in Day, Marshall, Roberts, Brown, Clark, Grant, and Spink counties.
Northern Electric Cooperative, headquarted in Bath, will use $34.5 million to build and improve more than 220 miles of power lines and connect nearly 580 customers to reliable electricity in northeastern South Dakota. Nearly $2.1 million of this investment will be used to help the cooperative advance its smart grid technologies. Northern Electric serves nearly 6,600 customers through 2,500 miles of line in ten South Dakota counties and one North Dakota county.
In Lake Andes, Charles Mix Electric Association will use $1.3 million to finance electric distribution facilities to better serve its more than 2,600 customers through 1,322 miles of line in Charles Mix, Brule, Bon Homme, and Douglas counties.
Managing nearly 2,000 miles of line in seven counties, FEM Electric Association will use $8.7 million to build and improve nearly 50 miles of power lines and connect nearly 100 customers in central South Dakota to reliable electricity. Nearly $932,000 of this investment will be used to help advance smart grid technologies.
Central Electric Cooperative Inc. will use $24.2 million to build and improve more than 220 miles of power lines and connect nearly 225 customers in central South Dakota. More than $3.1 million of this investment will be used to advance smart grid technologies. Headquartered in Mitchell, Central Electric provides electric service to approximately 7,300 customers over nearly 4,500 miles of power lines in 14 counties.
East River Electric Power Cooperative in Madison, South Dakota will use $203.4 million to finance transmission additions and improvement facilities including to build and improve more than 300 miles of transmission line. More than $12.5 million of this investment will be used to help advance smart grid technologies. East River serves nearly 127,000 customers in 41 counties in eastern South Dakota and 22 counties in western Minnesota.
Together, these projects will reduce electricity costs for hardworking families and small business owners and prevent power outages in the face of extreme weather exacerbated by the climate crisis. The investments will also strengthen the nation’s energy independence and good-paying jobs that benefit everyone.
Electric Infrastructure Loans
USDA is investing $2.2 billion to support 39 projects in 21 states, including South Dakota, through the Electric Infrastructure Loan and Loan Guarantee Program. Funding is made available through regular appropriations from Congress to help utility providers and electric cooperatives build and improve electric infrastructure, smart-grid technologies and renewable energy systems.
These 39 projects will ensure more than two million people in rural areas have access to reliable electricity, increasing their opportunities for economic growth and enhancing their overall quality of life.
Background
USDA Rural Development provides loans and grants to help expand economic opportunities, create jobs and improve the quality of life for millions of Americans 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, tribal and high-poverty areas. Visit the Rural Data Gateway to learn how and where these investments are impacting rural America.
Information on programs available through USDA Rural Development is available by visiting www.rd.usda.gov/sd, contacting your local Rural Development office, or by following @RD_SouthDakota on X.
To subscribe to USDA Rural Development updates in South Dakota, visit GovDelivery subscriber page.
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