Virginia Electric Cooperatives Receive $120 Million in Federal Loans

Virginia Senator Jim Webb (D-Va) announced today that more than $120 million in federal loans have been granted to Rappahannock Electric Cooperative and A & N Electric Cooperative to build nearly 1000 miles of distribution lines, benefiting thousands of customers in rural Virginia. The funding will be provided through the U.S. Department of Agriculture (USDA) Rural Development’s Electric Loan Program.

With these funds, rural areas of northern and central Virginia, the Shenandoah Valley and the Eastern Shore will see 1,000 miles of new distribution lines and upgrades to existing lines.

Funding of each loan guarantee recipient listed below is contingent upon the recipient meeting the conditions of the loan agreement:

  • Rappahannock Electric Cooperative: $91,800,000 to serve 9,133 new and existing consumers in Virginia, build 879 miles of new distribution lines and 3 miles of transmission lines, make improvements to 161 miles of distribution lines, construct headquarters facilities, and make other system improvements. Rappahannock Electric Cooperative serves portions of the following 22 Virginia counties: Albemarle, Caroline, Clarke, Culpeper, Essex, Fauquier, Frederick, Goochland, Greene, Hanover, King and Queen, King William, Louisa, Madison, Orange, Page, Rappahannock, Rockingham, Shenandoah, Spotsylvania, Stafford, and Warren.
  • A & N Electric Cooperative: $31,600,000 to serve 2,407 new and existing consumers, build 103 miles of new distribution lines and 1 mile of new transmission line, make improvements to 54 miles of distribution lines, and make other system improvements. A & N Electric Cooperative serves Accomack and Northampton on Virginia’s Eastern Shore.

Through its Rural Development programs, USDA strengthens the economic stability of rural communities, businesses, residents, farmers, and ranchers and improves the quality of life in rural America. Rural Development has an existing portfolio of more than $140 billion in loans and loan guarantees.

Comments

  1. Ellis L. Chapman says:

    REC’s (Rural Electric Coops) have been bilking Uncle Sam for years (the original bail out). Watch out for our rising electric rates especially to consumers and small businesses (like restaurants, laundry mats, club houses, etc.) over the next few years as we “The Members” pay for these loans!

  2. Bubba D says:

    Oh boy! As a member, shouldn’t we be allowed a say in how this money is spent? How about investment in alternative energy generators such as windmills or solar panels. No talk of green energy here. Nice welcome packet of information, like everything else, we the customer….I mean member will end up paying for every “improvement” they decide to make for us.

  3. Tony Parrott says:

    So my TAX dollars are being loaned out to the co-op so they can make improvements or build new lines that will distribute power that they don’t produce; they purchase and resell?

    I’m in the wrong business.