CIPCO getting $59.8 million USDA loan

Rural electric cooperatives based in Anamosa and Cedar Rapids will be receiving federal loans for infrastructure improvements.

Central Iowa Power Cooperative, 1400 Highway 13, has been awarded a $59.8 million loan to fund more than 126 miles of new or upgraded power lines. The largest rural electric energy provider in Iowa distributes electricity to more than 125,000 residential customers and 17,000 businesses in 51 Iowa counties.

Maquoketa Valley Rural Electric Cooperative in Anamosa, a member of CIPCO, will receive a $5 million loan to build or upgrade 156 miles of power lines. An additional $323,325 was awarded for smart grid construction.

The U.S. Department of Agriculture awarded the loans, part of nearly $2.3 billion in grants and loans to build and improve rural electric infrastructure in 31 states.

'Improving our rural electric utility systems will help us continue to provide reliable and affordable electricity to rural customers,” said U.S. Secretary of Agriculture Tom Vilsack in a news release. 'By financing these improvements, USDA helps increase efficiencies, reduce carbon emissions and improve the quality of life in rural areas.”

The USDA funding is contingent on recipients meeting the terms of the loan or grant agreement.

USDA is awarding loans to 77 utilities and cooperatives in 31 states. The funding includes more than $108 million for smart grid technology, $41 million for renewable energy improvements and $9 million for storm damage repairs.

The loans will help build or improve 12,000 miles of transmission and distribution lines.

The funding is being provided through USDA Rural Development's Electric Program, which makes loans and loan guarantees to not-for-profit and cooperative associations, public bodies and other utilities, primarily for electric distribution in rural areas.

Since 2009, USDA has funded $34 billion in electric loans and more than $1 billion for smart grid technologies. The funding has helped build more than 185,000 miles of transmission and distribution lines serving approximately 8.5 million rural customers.