Energy spending in rural US focuses on basic services
A $2.1-billion program to improve electricity service in rural parts of the US includes only around $40 million in investment in smart-grid technologies.
Rather than smart technologies, new transmission and distribution lines dominate the improvements being funded. It’s a noticeable shift in priorities from previous infrastructure investments supported by the 2009 economic stimulus bill, which put a heavy focus on clean energy, efficiency and smart-grid development.
The US Department of Agriculture’s (USDA) Rural Utilities Service will provide the funds in the form of loans to help rural utilities build and upgrade their electricity infrastructure. The spending is also aimed at supporting President Barack Obama’s proposed American Jobs Act to boost employment.
“This investment in the electric grid will help address the growing need for electric service nationwide and spur job creation by building out rural infrastructure,” said Agriculture Secretary Tom Vilsack. “Smart grid technology can help better manage power use, provide rate stability for businesses and create the climate for job growth in rural America.”
The largest loans include:
- $499 million to Virginia’s National Rural Utilities Cooperative Finance Corporation to “furnish or improve electric service”;
- $493 million to thge Oglethorpe Power Corporation in Georgia for improvements to power generation systems;
- $124.6 million to the North Carolina Electric Membership Corporation for additions and improvements to the Catawba Nuclear Stations; and
- $133 million to the Tri-State Generation and Transmission Association Inc. for new and improved transmission lines and substations for service areas in Colorado, Nebraska, New Mexico and Wyoming. The loan includes $9.7 million in funding for smart-grid projects.
Among other smart-grid improvements being supported through the USDA loans:
- $90 million for a 49.9-megawatt woody biomass generation facility to be developed by the Northern Virginia Electric Cooperative;
- $9.4 million for smart-grid projects by Georgia’s Amicalola Electric Membership Corporation, which is receiving almost $30 million in USDA loans;
- More than $2 million for smart-grid technology through a $35 million loan to Colorado’s Highline Electric Association; and
- $1 million in funding out of a $7 million loan to Colorado’s Gunnison County Electric Association.
