Several North Dakota electric cooperatives have received U.S. Department of Agriculture loans to modernize electric generation and transmission systems.Rural Utilities Service loans (some numbers rounded) were awarded to:
- Mountrail-Williams Electric Cooperative: $54 million; improve 520 miles of powerlines
- Minnkota Power Cooperative: $309 million; 260 miles of high voltage transmission line
- McLean Electric Cooperative: $10 million; 100 miles of powerlines
“This is a rapidly growing co-op mostly caused by development brought on by the Bakken oil field,” said Dennis Hill, general manager of the North Dakota Association of Rural Electric Cooperatives.I think the loans total about $370 million but there were a lot of zeroes to keep track of.
Unlike loans to Solyndra and 35 other faltering/bankrupt green energy companies receiving federal loans, I assume these loans will be paid back. In full. On time. With a smile.
And these are government backed loans for WHAT REASON ?
ReplyDeleteWell, let's see: a) 520 miles of upgraded powerlines to support the Bakken; b) 260 miles of high voltage transmission lines to carry electricity from North Dakota to Minnesota; and, 100 miles of powerlines for smart grid, water expansion projects and increased tourism around Lake Sakakawea.
DeleteI assume that over the years, the banks were unable to lend the amount of money required (collateral issues) and these utilities turned to government for backing/guarantees. Today, the banks are even under heavier regulation and would not be able to loan this amount of money without collateral, and thus the reason for the government backing.
And as noted, it's not a bit unusual for government to provide loans. It just appears that the Dept of Agriculture is backing entities that will succeed whereas the Dept of Energy backed at least 37 faltering/bankrupt green-energy companies.
What a great country!