National Rural Electric Cooperative cites concerns with Senate Farm Bill
National Rural Electric Cooperative Association (NRECA) is concerned with a portion of the Senate Farm Bill that would significantly change the rural electrification funding program.
The legislation contains a stipulation that would retroactively impact escrow accounts for rural electrification development. NRECA officials said this would likely lead to increased costs for electric cooperative consumers.
“The Senate proposal makes unreasonable changes to the RUS electric loan program and is unacceptable to electric cooperatives,” NRECA CEO Jim Matheson said. “By retroactively reducing interest rates on these funds, the Senate is unfairly altering existing agreements without considering the consequences or alternative approaches. We strongly urge lawmakers to implement significant changes in conference as they work to develop a Farm Bill that can be supported by our members and the 42 million Americans they represent.”
Matheson explained that the co-ops fund escrow accounts to secure their ability to repay government loans. The electric loan program adds hundreds of millions of dollars each year to the Treasury.
While applauding the passage of the Farm Bill, Matheson urged leaders of the Senate Agriculture Committee to reconsider their approach towards escrow accounts for rural electrification.
The NRECA represents more than 900 local electric cooperatives, serving approximately 42 million people across 56 percent of the country.
