WASHINGTON, May 12, 2006 - Agriculture Secretary Mike Johanns today announced more than $118 million in loans to seven rural electric cooperatives to help provide infrastructure for economic development in rural communities. These loans were made to rural electric cooperatives serving the states of Arizona, California, New Mexico, Texas, Kentucky, Louisiana, South Carolina and Wisconsin.

"These loans will enable cooperatives to extend service to 30,000 new customers as well as upgrade and modernize their systems to meet expanding needs," said Johanns. "Improving the electric infrastructure in rural America is vital for continued economic growth and an important component of President Bush's comprehensive energy plan."

The loans are made to the McLennan County Electric Cooperative in Texas for $8.6 million; the Nolin Rural Electric Cooperative Corporation in Kentucky for $12.261 million; the Point Coupee Electric Membership Corporation in Louisiana for $5.897 million; the Farmers Electric Cooperative, which serves counties in New Mexico and Texas, for $14.956 million; the Lynches River Electric Cooperative in South Carolina for $19.364 million; the Southwest Transmission Cooperative, serving distribution cooperatives in Arizona, California and New Mexico, for $49.575 million; and the St. Croix Electric Cooperative in Wisconsin for $8.3 million.

The loans announced today are a part of the USDA Rural Development Electric Loan program, which provides infrastructure for economic development in rural communities. Six of the loans are made at the cost of money to the federal government, with one that is a guarantee of a Federal Financing Bank loan that is made at the cost of money to the government plus 1/8th of a percent.

The loans announced today will bring service to 29,453 new customers, build 600 miles of new distribution line and make system improvements for all of the cooperatives involve in these loans.

USDA Rural Development's mission is to deliver programs in a way that will support increasing economic opportunity and improve the quality of life of rural residents. As a venture capital entity, Rural Development has invested more than $63 billion since the beginning of the Bush Administration to provide equity and technical assistance to finance and foster growth in homeownership, business development, and critical community and technology infrastructure. As a result, more than 1.1 million jobs have been created or saved through these investments. Further information on rural programs is available at a local USDA Rural Development office or by visiting USDA's web site at http://www.rurdev.usda.gov.