In a depleting economy targeting much of the U.S., one U.S. official has found an alternative way to generate jobs and simultaneously benefit consumers.

Agriculture Secretary Tom Vilsack has unveiled a loan program that will grant $900 million in funding to rural electric cooperative utilities to go toward smart grid technologies and upgrades to generation and transmission systems, benefitting more than 19,000 rural consumers in 14 U.S. states.

"Rural electric cooperatives provide direct jobs and support economic growth in our rural communities," Vilsack said in a press release. "By financing electrical system improvements USDA and the Obama Administration helps ensure sustainable growth and business job creation. Investments in smart grid technologies will give rural electric utilities and their consumers one more tool to better manage use of electricity, increase reliability and lower costs."

Provided by the USDA Rural Development’s Rural Utilities Service (RUS), which is responsible for funding energy conservation and renewable energy projects, the loans will support electric utilities in efforts to upgrade, build out, maintain and replace the country’s existing electric infrastructure. While more than $19 million will be used toward financing smart grid technologies, other RUS funding will build nearly 1,500 miles of line and enhance more than 1,700 miles of current line in rural regions.

Hoosier Energy Rural Electric Cooperative, Inc., which serves Indiana and parts of Illinois, is among the utilities to receive a loan. Its $462.5 million loan will support system projects in reliance and compliance with environmental standards, as well as smart grid technologies and transmission line improvements.

Meanwhile, a $23.5 million loan granted to Northeast Oklahoma Electric Cooperative, Inc., will go toward building and augmenting nearly 250 miles of distribution line. And, $1.2 million of that loan will go toward automated metering.

Other rural utilities selected to receive USDA funding include ones in Delaware, Georgia, Iowa, Kansas, Michigan, Minnesota, Wisconsin, Missouri, Montana, Oklahoma, South Dakota and Texas.

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Tammy Wolf is a TMCnet web editor. She covers a wide range of topics, including IP communications and information technology. To read more of her articles, please visit her columnist page.

Edited by Stefanie Mosca