USDA Announces $385 Million in Rural Electric Loan Guarantees

March 19, 2004

4,300 Miles of New Electric Lines in 16 States to Benefit 62,980 Future Customers

Agriculture Secretary Ann M. Veneman announced approval of 28 rural electric guaranteed loans totaling nearly $385.6 million to expand rural electric infrastructure in 16 states.

Tri-State Generation and Transmission Association, headquartered in Denver, Colo., has been approved for a loan of $46,426,400. The funds will be used for construction of new lines, new stations, line and station changes and other upgrades and modifications. Tri-State is a "generation and transmission" cooperative providing power to distribution cooperatives in the states of Colorado, Nebraska, New Mexico and Wyoming.

"Expansion of rural infrastructure is a first step in opening the door for expanded rural economic development and improved quality of life for rural residents," said Veneman. "These projects will serve 62,980 future customers, build 4,300 miles of new line and fund general system-wide modernization."

Through USDA Rural Development’s utilities program, loans and loan guarantees are made to finance the construction or replacement of electric transmission and generation facilities. In fiscal year 2003, the Bush Administration invested over $6.3 billion in grants, loans and loan guarantees to support the development and/or improvements to rural electric, telephone and water/wastewater infrastructure that will help to create or save an estimated 150,000 jobs.

"It’s great to work with Tri State and help them fulfill their vision of providing efficient and quality power to the rural residents in the four state region," said Gigi Dennis, State Director, USDA Rural Development.

The loans announced today include 25 distribution projects and three transmission and generation ventures. The generation and transmission loans will finance construction of new substations, provide for transmission line and substation changes, build 14.8 miles of 69kV transmission line, and make other needed modernization changes. The construction aspect of these loans will create or save an estimated 8,900 jobs while opening the door for economic development in hundreds of rural communities. The private capital leveraged by these loans is expected to nearly double the number of jobs to be saved or created

USDA Rural Development's mission is to deliver programs in a way that will support increasing economic opportunity and improve the quality of life of rural residents. As a venture capital entity, Rural Development provides equity and technical assistance to finance and foster growth in homeownership, business development, and critical community and technology infrastructure. Further information on rural programs is available at a local USDA Rural Development office or by visiting USDA's web site at http://www.rurdev.usda.gov.