Powering progress

How Rural Electric Cooperatives partner with the USDA to energize Oklahoma communities

Electric cooperatives are the backbone of delivering rural America’s power delivery. As state director for rural development in Oklahoma, I am seeing firsthand how the millions of dollars in investments in our state are capitalizing on the strength of rural electric cooperatives.

One of those programs, the Rural Energy Savings Program, provides no-interest loans for 20 years to cooperatives to then relend the money to their members to implement cost-effective efficiency measures. The program helps reduce demand on the cooperative’s electric grid and helps the member save money for their family home or rural business. Both Indian Electric and Central Rural Electric are participating in this program with an investment by USDA for $12 million each.

Another program, the Electric Infrastructure Loan and Loan Guarantee Program, has provided $194 million through Rural Development’s core electric loan program to five Oklahoma cooperatives, helping to strengthen grid operations. Three more cooperatives are currently working to secure an additional $210 million in investments here in Oklahoma in the coming year.  This program allows the financing and construction of electric distribution, transmission and generation facilities, including system improvements and replacement required to furnish and improve electric service in rural areas. It also supports demand side management, energy conservation programs and on-grid and off-grid renewable energy systems. In addition, this program allows for cooperatives in economically distressed areas to qualify for a hardship loan from USDA to help recover from a natural disaster like a tornado. These hardship loans are currently provided at a fixed interest rate of 5% with a payback period of up to 35 years.

Together, these projects will reduce electricity costs for hardworking families and small business owners and help reduce power outages in the face of extreme weather events our state is known for. These investments will also strengthen Oklahoma’s energy independence and provide good-paying jobs that benefit the entire Sooner State.

As a former city manager who oversaw the day-to-day operations of a city-owned power grid, I understand the unique challenges and fiscal constraints electric cooperatives face in maintaining and delivering the power your members need and expect on a 24/7 basis. Your cooperatives not only provide an essential service to rural Oklahomans, but also strive every day to keep costs affordable. Unlike large for-profit organizations, you understand the economic importance of rural Oklahomans for our state. That is why I want to commit our Rural Development team to help be a partner with you in powering future progress for our state. Please feel free to reach out to Team Oklahoma Rural Development to help energize Oklahoma going forward.