Rural Utilities Service Loans Summary:
Consumer-owned, not-for-profit electric cooperatives maintain nearly half the nation’s electric distribution lines which cover 75 percent of America’s land mass while serving only 12 percent of all business and residential electric consumers. Cooperatives meet that unique challenge in part by using RUS loans to finance affordable, reliable electric service to approximately 42 million people. More than 500 electric co-ops in 41 states hold outstanding RUS debt. Repricing these loans without penalty would provide longer-term support for electric cooperatives and help manage consumer electric bills during this difficult economic period.
Issue – RUS Loan Repricing:
- Members of the Senate and House of Representatives have introduced the Flexible Financing for Rural America Act of 2020 to reprice electric cooperative loans from the U.S. Department of Agriculture’s Rural Utilities Service.
- Electric co-ops could realize $10.1 billion in net present value (NPV) savings from repricing $42 billion in RUS loans.
- Repricing RUS loans without penalty for more than 500 participating electric co-ops would help manage consumer electric bills during this difficult economic period.
- We ask that Congress include the RUS repricing bill in the next COVID relief package to provide co-ops with additional financial security.
In the Press: