An investment worth $270 million in loans are coming to two of Michigan's rural electric cooperatives to expand access and replace old infrastructure.
"This type of investment is generational," said Brandon Fewins, Michigan director with the USDA, in a phone call with WCMU.
The majority of the loans have been awarded to Great Lakes Electric Cooperative (GLEC) based in Boyne City. They serve over 128,000 customers throughout 26 counties in western and northern Michigan.
GLEC intends to connect more than 5,700 rural customers who currently don’t have access to the grid and will update over 400 miles of aging infrastructure. They're also planning to expand its fiber communication network by 2,400 miles.
Fewins said much of the state’s grid technology is over 100 years old and the loans will improve the electrical grid’s security.
"Replacing this aging infrastructure by integrating newer smart grid technologies, results in greater efficiency of transmission of electricity for our rural residents," said Fewins.
Updated infrastructure in the electrical grid will also help power disturbances and be able to restore electricity quicker in the event of an outage, Fewins added. He also said there's the potential for lower power bills for consumers due to the robust updates that will better conserve energy.
The Alger-Delta Cooperative Electric Association, serving six counties in the upper peninsula, also received a loan from USDA valued at nearly $11 million to connect 735 more customers and update 84 miles of electrical lines.
Michigan's USDA office told WCMU the interest rates for these loans are not locked in. They will not be set until the funds are drawn from the USDA.
Editor's note: This story originally reported the interest rates for the loans were not provided to WCMU by the Michigan USDA office. That information is now reflect in this story.
