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Tax and Financing

Electric co-ops use a combination of private financing and government loans and grants to maintain and modernize electric systems and improve rural communities.

Where we stand

Co-ops need access to affordable financing to maintain nearly half of the electric distribution lines and other grid facilities in the United States. NRECA supports robust funding for loans and grants from the Department of Agriculture’s Rural Utilities Service and other federal programs that promote a robust electric grid, rural broadband service and rural economic development.

Digging deeper

RUS Electric Loan Program

Electric co-ops use financing from the RUS Electric Loan Program to help provide affordable, reliable power in rural America. NRECA urges Congress to pass the Flexible Financing for Rural America Act. The bipartisan bill would save co-ops more than $10 billion by allowing them to reprice RUS loans at lower interest rates. It also would waive any prepayment penalties normally associated with refinancing.

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