Providing reliable, affordable electricity is essential to the economic well-being and quality of life for all of the nation's rural residents. The Electric Programs provide leadership and capital to upgrade, expand, maintain, and replace America's vast rural electric infrastructure. Under the authority of the Rural Electrification Act of 1936, the Electric Programs make direct loans and loan guarantees to electric utilities to serve customers in rural areas.
The loans and loan guarantees finance the construction of electric distribution, transmission, and generation facilities, including system improvements and replacement required to furnish and improve electric service in rural areas, as well as demand side management, energy conservation programs, and on-grid and off-grid renewable energy systems. Loans are made to corporations, states, territories and subdivisions and agencies such as municipalities, people's utility districts, and cooperative, nonprofit, limited-dividend, or mutual associations that provide retail electric service needs to rural areas or supply the power needs of distribution borrowers in rural areas.
Through the Electric Programs, the Federal government is the majority noteholder for approximately 700 electric systems borrowers in 46 states.
The Electric Programs also provide financial assistance to
rural communities with extremely high energy costs to acquire,
construct, extend, upgrade, and otherwise improve energy
generation, transmission, or distribution facilities.
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A fact sheet that describes the Electric
Programs is available in both PDF
and text
formats.
Other highlights of our website are listed
below.
Cushion of Credit Accounts:
Describes the provisions of Section 313 of the Rural Electrification
Act of 1936 (RE Act), as amended.
Waiver
of Provisions: Read the May 15, 2001, letter from
Blaine Stockton, former Assistant Administrator, Electric
Program, to all electric borrowers concerning Waiver of
Provisions of RUS Loan Documents - Current Ratio Limitation
on Distributions. (Available in PDF
and HTML.)
Special Equipment
Accounting: Read the November 14, 2000, letter from
Kenneth Ackerman, Assistant Administrator, Program Accounting
and Regulatory Analysis, to all electric borrowers concerning
special equipment accounting procedures. (Available in PDF
and HTML.)
Homeland Security: Information
on the certifications for Vulnerability and Risk Assessment
and Emergency Restoration Plans is available on the
Homeland Security page.
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