Minnesota Ag Connection - USDA Invests in Rural Electric to Increase Grid Resilience

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USDA Invests in Rural Electric to Increase Grid Resilience
Minnesota Ag Connection - 11/15/2018

U.S. Department of Agriculture (USDA) Rural Development State Director for Minnesota Brad Finstad Tuesday announced nearly $75 million in rural electric utility infrastructure projects to improve electric reliability and resilience for more than 60,000 customers across Minnesota.

"Modern infrastructure is the cornerstone of rural prosperity," Finstad said. "Under the leadership of Agriculture Secretary Sonny Perdue and Assistant Secretary for Rural Development Anne Hazlett, USDA is dedicated to its partnerships with rural electric cooperatives and help provide reliable and affordable power to rural communities."

South Central Electric Association will use a $10 million loan to build 23 miles of line, improve 42 miles and make other system improvements, including $2.8 million for smart grid technologies. South Central Electric provides service to approximately 5,810 consumers over more than 2,400 miles of line across eight counties.

Lyon-Lincoln Electric Cooperative will use a $7,037,000 loan to build 24 miles of line, improve 45 miles and make other system improvements, including an investment of $285,000 for smart grid technologies. Lyon-Lincoln Electric serves nearly 4,000 residential business consumers over 1,666 miles of line.

Agralite Cooperative is receiving a $14,712,000 loan to build eight miles of line, improve 70 miles and make other system improvements, including nearly $2.7 million in smart grid technologies. Agralite serves more than 5,200 residential and commercial consumers over 2,428 miles of line. The service territory is primarily rural with a focus on farming, recreation and commercial industry that includes an ethanol plant, commercial dairy farm and turkey production facility.

Co-op Light & Power Association of Lake County will use a $5,670,000 loan to build 35 miles of line, improve 12 miles and make other system improvements, including an investment of $439,278 in smart grid technologies. Located in Two Harbors, Minn., and energized in 1936, the Co-op Light & Power Association serves more than 6,000 residential and commercial consumers in the northeastern, Arrowhead region of the state. Tourism, timber and mining are the major industries in the service territory, which also serves four state parks, a national forest and the Boundary Waters Canoe Area Wilderness.

Minnesota Valley Electric Cooperative is receiving a $31 million loan to build 83 miles of line, improve 122 miles and make other system improvements, including nearly $1.6 million in smart grid technologies. Minnesota Valley Electric serves 42,000 residents over 968 square miles.

Finstad's announcement is in coordination with the $1.6 billion in 46 projects, recently announced by Assistant to the Secretary for Rural Development Anne Hazlett, to improve electric reliability and resilience in 24 states.

Funding is being provided through USDA' Electric Program and will help build or improve 5,833 miles of line. It includes $307 million in smart grid technologies, which improve system operations and monitor grid security.

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