Thumb Electric Raises $ 26.5 million through the USDA Electric Loan Program
UPPER THUMB – Thumb Electric Cooperative in Ubly is receiving a $ 26.5 million loan through the U.S. Department of Agriculture’s Electric Loan Program.
Dallas Braun, general manager of TEC, said the loan is essentially a pre-approved line of credit intended to fund capital improvements to electrical infrastructure in the area over the next five years.
The loan is designed to connect 252 rural member consumers and build or upgrade a 97-mile line through infrastructure improvements. Of the $ 26.5 million, $ 3 million will go into smart grid technology.
“Thumb Electric has used USDA funds for capital improvement projects for decades,” said Braun. “The last one was in 2015 for $ 25 million.”
“Some improvements that will be made over the next five years include rebuilding low-performing distribution and transmission circuits to increase capacity and reliability, upgrading or replacing substation transformers to increase capacity, and replacing deteriorating ones Transmission and distribution masts, ”added Braun.
The funds will also be used for the installation of an Advanced Metering Infrastructure system that enables bidirectional communication with meters. According to Braun, this smart grid technology will bring TEC member consumers cost savings, efficiency and future opportunities.
The Trump administration announced on June 22 that the USDA is investing $ 1.6 billion in “building or improving rural electrical infrastructure” in 21 states.
The USDA Rural Development expands economic opportunities and creates jobs in rural areas through loans and grants that support infrastructure improvements, business development, and high-speed Internet access.
“Reliable and modern infrastructure of the 21st.” Under the leadership of President Trump, the USDA strives to be a strong partner for rural businesses in building their futures. “
The USDA’s Electric Loan Program will provide $ 1.6 billion in loans and guarantees for rural power cooperatives and utilities. The funds will be used to build or improve 9,138 miles of electrical transmission and distribution lines in 21 states that will benefit one million rural residents and businesses. Of the $ 1.6 billion, $ 386 million will be invested in smart grid technology, which uses digital communications to detect and respond to local changes in power consumption.
“This government is making arguably the most sustained and intensive investment in rural infrastructure since the Great Depression,” said Jason Allen, the USDA’s director of rural development in Michigan. “We’re connecting Michigan’s rural communities like never before.”
Founded in 1937, Thumb Electric Cooperative is a not for profit that returns all profits to its member consumers. TEC now serves over 12,000 member consumers over 2,141 miles of conduit in Huron, Sanilac and Tuscola counties.