Electric Co-ops Call for Stronger USDA Loan Support as Rural Power Demand Outpaces Infrastructure

Jim Matheson, CEO of the National Rural Electric Cooperative Association (NRECA), recently discussed with RFD News the key policy priorities for rural electric cooperatives during a fly-in event in Washington, D.C. A primary focus is advocating for expanded USDA loan programs to help rural co-ops modernize their infrastructure and meet increasing electricity demand. Matheson highlighted that these low-interest loans, repaid by co-ops, are crucial for funding investments in system reliability and resilience, especially as current lending caps limit their ability to keep pace with growth. The rising demand for electricity is attributed to general economic growth and, significantly, the expansion of data centers and artificial intelligence operations, which are increasingly locating in rural America. Matheson stressed the importance of ensuring that new infrastructure investments do not negatively impact existing consumers. He emphasized that policies should be in place to ensure data centers contribute their fair share to infrastructure costs, safeguarding the affordability and reliability of power for current residents. In addition to addressing demand, Matheson spoke about the need for stronger disaster preparedness, advocating for legislation to improve coordination with FEMA and allow co-ops to invest proactively in resilience measures. He also highlighted the "Fix Our Forests Act," which the House has passed and the Senate is considering, to improve access to Forest Service land for clearing power line rights-of-way. This initiative aims to mitigate wildfire risks, which Matheson noted are no longer confined to the western U.S., but are now a nationwide concern impacting power line safety in states like Georgia and North Carolina.