Over the last 30-plus years, many rural electric systems have assumed a variety of roles with water and sewer systems. The roles include:

• Ownership
• Management services
• Operation and maintenance services
• Financial assistance
• Building community support
• Assistance in developing new facilities
• Merger assistance

Involvement in other utilities like community water or wastewater systems will expand the rural electric system’s relationship with its customers while providing a valuable community service. Some electric cooperatives that are involved in this program include Warren Rural Electric Cooperative Corporation in Bowling Green, Kentucky, and Southern Illinois Electric Cooperative in Dongola, Illinois.

RUS, through its Water and Environmental Programs, provides financing for water and waste disposal (WWD) facilities. WWD loans and grants are available to develop water and waste disposal (including solid waste disposal and storm drainage) systems in rural areas and towns with a population not in excess of 10,000. The funds are available to public entities such as municipalities, counties, special-purpose districts, Indian tribes, and corporations not operated for profit. RUS may also guarantee water and waste disposal loans made by banks and other eligible lenders. Grant funds may be used to reduce water and waste disposal costs to a reasonable level for rural users. Grants may be made for up to 75 percent of eligible project costs in some cases. More information may be obtained from any USDA Rural Development field office or via the Internet at:

During fiscal year 1998, 949 loans for $787 million and 752 grants for $469.5 million were made to construct or improve rural water and waste disposal facilities. Similar numbers are expected for fiscal year 1999.

In 1995, NRECA and the National Rural Utilities Cooperative Finance Corporation (CFC) jointly published Community Involvement – Opportunities in Water-Wastewater Services, The Final Report of the NRECA/CFC Joint Member Task Force on Rural Water and Wastewater Infrastructure. This is a very good resource for rural electric systems contemplating involvement in a water or wastewater system. More information may be obtained from NRECA, 4301 Wilson Boulevard, Arlington, Virginia 22203-1860. Telephone: (703) 907-5500.

If you would like more information or have any questions, please call Glen Deal, Acting Director, Engineering and Environmental Staff, at (202) 720-1582, E-mail: gdeal@rus.usda.gov.