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June 14, 2011

U.S. Department of Agriculture Announces New Smart Grid Investments in 10 States



New investments and funding are on the way for the nation’s smart grid infrastructure. Agriculture Secretary Tom Vilsack and administrative officials announced initiatives aimed at modernizing the nation's electric grid.

Included in these initiatives is the USDA's goal to invest $250 million in smart grid equipment deployment in rural America over the next 12 months.

Vilsack describes this effort as “one more step in our effort to modernize rural America's electric grid.”

“Smart grid technologies give consumers greater control over their electric costs and help utilities efficiently manage power generation and delivery,” Vilsack said. “Through the use of modern technology we can improve the efficiency of distribution, increase reliability, and win the future through innovation.”

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With funding from USDA Rural Development's Rural Utilities Service (RUS), rural electric cooperatives are leading the way in smart grid deployments. Last year, RUS approved $7.1 billion in loans for a broad range of rural electric grid modernization, including $152 million in loans for smart meters.

The government focuses on building smart grid infrastructure which includes metering, substation automation, computer applications to monitor and control systems and processes, two-way communications, geospatial information systems, and additional system improvements.

Of the $106 million in electric loans provided by USDA Rural Development, $7.4 million is allotted for smart grid technologies such as load management and automatic meter reading.

The grant will provide nearly $38 million to the Blue Grass Energy Cooperative Corporation in Kentucky to build more than 152 miles of line. In addition, the rural electric cooperative will use $2.7 million for smart grid technologies.

In North Carolina and Tennessee, French Broad Electric Membership Corporation will receive a loan guarantee of $20 million, with more than $2.4 million to be used for advanced meter infrastructure upgrades that can help utilities and customers better control the use and production of electric energy.

Among the list of rural utilities that were selected to receive USDA funding include Jasper County Rural Electric Membership Corporation in Indiana, Nemaha-Marshall Electric Cooperative Association in Kansas, Blue Grass Energy Cooperative Corporation in Kentucky, Tongue River Electric Cooperative in Montana, French Broad Electric Membership Corporation in North Carolina and Tennessee, KEM Electric Cooperative in North Dakota, Craig-Botetourt Electric Cooperative in Virginia and West Virginia, and Benton Rural Electric Association in Washington.

Back in March, Vilsack announced that 10 electric cooperatives and utilities have been awarded a total of $376 million in funding to connect nearly 20,000 residents in 13 states to America’s power infrastructure and smart grid technology.

Rajani Baburajan is a contributing editor for TMCnet. To read more of Rajani's articles, please visit her columnist page.
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