USDA Invests $19 Million to Modernize Iowa’s Rural Electric Grid

The U.S. Department of Agriculture (USDA) Rural Development is providing $19 million in loans to improve the electrical grid in rural Iowa, bolstering reliability and affordability for residents and supporting economic growth. The funding will be distributed between Butler County Rural Electric Cooperative and Southwest Iowa Rural Electric Cooperative.

Butler County Rural Electric Cooperative Receives $8 Million Loan

Butler County Rural Electric Cooperative, serving over 5,000 customers across seven eastern Iowa counties – Bremer, Butler, Cerro Gordo, Chickasaw, Fayette, Floyd, and Franklin – will receive an $8 million loan . Established in 1936, the cooperative will use the funds to enhance its electrical distribution system, including the construction of 9.5 miles of modern consumer lines and improvements to 146.4 miles of existing lines . The project will also finance new underground and overhead connections, tie-lines, line conversions, transformers, and meters .

Southwest Iowa Rural Electric Cooperative Awarded $11 Million

Southwest Iowa Rural Electric Cooperative will receive an $11 million loan to upgrade its infrastructure, benefiting approximately 6,000 members in Adair, Adams, Cass, Decatur, Fremont, Mills, Montgomery, Page, Ringgold, Taylor, and Union counties . The funding will support improvements to distribution equipment and a substation .

USDA’s Commitment to Rural Infrastructure

Michael Sexton, USDA Rural Development State Director for Iowa, emphasized the USDA’s commitment to improving the reliability and affordability of rural electrical infrastructure . These investments, made under the Electric Infrastructure Loan and Loan Guarantee Program, aim to boost economic productivity and enhance the quality of life for Iowans.

Senator Chuck Grassley announced the $8 million loan awarded to Butler County Rural Electric Cooperative, highlighting the importance of sound infrastructure for thriving rural communities .