Sen. Tester reintroduces bill to increase funding access for rural electric cooperatives
U.S. Sen. Jon Tester (D-MT) reintroduced last week a bill that would increase access to capital for rural electric cooperatives, which he says will lower energy costs and improve rural electric infrastructure.
This is especially true for Montana, where 25 rural electric cooperatives distribute energy throughout its 56 counties. According to Tester, they serve nearly half the state through more than 56,000 miles of distribution power lines. Yet their ability to fund themselves don’t always reflect that, and Tester’s bill takes that into account, working funding access by giving the Federal Home Loan Bank leeway to purchase securities issued by qualified cooperative lending associations.
“Whether it’s running a business, charging a computer, or simply keeping the lights on, Montanans need access to reliable, affordable power, no matter where they live,” Tester said. “This bill gives rural electric co-ops the tools to build out their infrastructure and better provide the electricity that everyone relies on, all while keeping money in customer’s wallets.”
Tester’s view — supported by his co-sponsor, U.S. Sen. Jerry Moran (R-KS) — is that this greater access to funding would allow cooperatives to invest in upgrades across his state and beyond. He says more than 400,000 residents could benefit from lower costs in Montana, alone.
The bill, known as the Improving Rural Access to Power Act, has been referred to the Committee on Banking, Housing, and Urban Affairs.
