The small federal investment in the Rural Utilities Service (RUS) electric loan programs over the years, coupled with strong management by the cooperative businesses, keep the electric cooperative infrastructure strong and viable today.
RUS financing remains an essential component of the co-op utility sector's loan portfolio. Loans to eligible electric cooperatives represent approximately 22 percent of total co-op financing.
As in many industries, the federal government provides assistance to each sector of the utility business. IOUs get tax breaks, municipals have access to tax exempt financing and some electric cooperatives receive loans through the RUS program.
Although some cooperatives have seen a portion of their service territories transformed into urban areas, for the most part electric co-ops are the sole providers serving far-flung, sparsely populated areas with below-average income levels. For these reasons, the RUS mission for financing new and maintaining existing electric infrastructure in rural America must be maintained.
NRECA wants Congress to ensure that its consumers continue to have access to safe, reliable, and at-cost supplies of power from electric cooperative utilities by fully funding the RUS electric loan program.
To learn more about NRECA’s position affecting RUS Financing, please select the links below.
Documents: