USDA Provides $4.6 Million Loan To Arkansas Electric Cooperative
by October 23, 2014 11:35 am 257 views
Agriculture Secretary Tom Vilsack today announced that the USDA has handed out another multi-million dollar federal loan to an Arkansas privately-held organization under the department’s new Energy Efficiency and Conservation Loan Program. That program is designed to help consumers reduce energy bills through energy efficiency improvements and renewable energy systems.
North Arkansas Electric Cooperative Inc. (NAEC) was one of only two rural cooperatives selected to receive federal funds under the new program. The Salem-based power group was awarded a $4.6 million loan to fund geothermal and air source installations, energy efficiency lighting, and weatherization measures.
Financing will reduce energy costs for Arkansas consumers and improve the services within Arkansas Electric’s service territory, USDA officials said.
North Carolina’s Roanoke Electric Membership Corporation will also receive a $6 million loan to finance improvements to HVAC Systems, appliance replacements, and building envelope improvements for an average of 200 residential energy efficiency upgrades per year over four years.
The new USDA loans follow Wednesday’s announcement by the department that it had awarded $24 million to Danville-based ArkWest Communication to build a “fiber-to-home” network to provide voice, broadband and internet TV service to nearly 4,700 rural customers in the Yell County area.
“These loans to North Arkansas Electric Cooperative and Roanoke Electric Membership Corporation are a landmark in our efforts to promote rural economic growth, while reducing greenhouse gases,” said Vilsack. “This program supports the President’s Climate Action Plan and reduces barriers to investment in energy efficiency, cutting business and residential energy use. This is an historic new bond in the partnership between USDA and our rural electric cooperatives.”
NAEC is one of seventeen distribution cooperatives located in Arkansas, which make up the Arkansas Electric Cooperative Corp (AECC). The Little Rock-based power distribution group has vehemently opposed President Obama’s controversial proposal to reduce carbon emissions proposed by the U.S. Environmental Protection agency.
The proposed rule, which mandates a 30% reduction in carbon dioxide emissions from electric generating plants by 2030, was issued in June by the EPA in response to a 2013 Presidential Executive Order. At the time, Duane Highley, president and CEO of AECC, said the EPA’s plan to reduce the use of goal to generate electricity could hurt the reliability of the Arkansas power grid system.
“We are disappointed that this EPA rule will reduce our use of coal, which is our most economical and reliable fuel to generate electricity,” Highley said. “Although the proposed rule leaves the precise implementation details to the states to develop, the inevitable result will be the use of more expensive fuels, such as natural gas.”
NAEC serves nearly 36,000 members in North Arkansas. It operates more than 4,500 miles of power line and 27 different substation sites, and runs two other full service offices located in Ash Flat and Mountain Home.
The Arkansas Public Service Commission and the state Department of Environmental Quality have been tasked by Gov. Mike Beebe to oversee the process of developing new rules to meet the EPA mandate in Arkansas.
The public comment period on the EPA docket began June 18 and the deadline to received comments on the power plan was originally slated for Oct. 16, 2014. That comment period has now been extended to Dec. 1, 2014.