WASHINGTON – As electrical systems age and decline in northwestern Minnesota, Runestone Electric Association is preparing to upgrade 180 miles of line and build 88 more with the help of federal loans.
"A lot of the equipment is over 30 years old and pre-computers and electronic devices ... it's like going from an old rotary phone to a smartphone," said Al Haman, manager of operations and engineering at the Alexandria-based utility company.
The U.S. Department of Agriculture (USDA) has promised in recent months to invest more than $108 million in Minnesota's electrical systems, including $43 million last week, amid the Trump administration's promises to rebuild rural infrastructure nationwide. The federal loans come via the USDA's Rural Utilities Service, which some advocates also want to see carry out a massive expansion of broadband internet in sparsely populated areas.
More than 40 percent of the electric distribution infrastructure in the U.S. is provided by rural entities that are currently or formerly customers of the USDA's Rural Utilities Service, Agriculture Secretary Sonny Perdue noted in recent congressional testimony.
"I saw firsthand that communities that cannot offer safe and reliable water, wastewater facilities, efficient electricity, broadband service ... cannot hope to grow businesses or attract new employers to their area," Perdue said.
Democrats in Washington have raised questions how the administration would fund its ambitious infrastructure goals, which total some $200 billion.
The Minnesota Rural Electric Association (MREA) says that in its membership area, there are an average of six members per mile of electric line, while investor-run utilities have 35.
"We're very sparsely populated, so the resilience and reliability of the grid matters a lot," said Jim Horan, director of government affairs and counsel for MREA.
