HERMISTON UEC lands $43M federal loan

Published 10:21 am Friday, October 23, 2015

The Umatilla Electric Cooperative plans to use a $43 million federal loan to rebuild aging power lines and substations, some of which are now more than 40 years old.

UEC was one of 77 utilities and co-ops in 31 states to receive funding from the U.S. Department of Agriculture’s Rural Development Electric Program, which has awarded $34 billion in low interest loans since 2009.

Agriculture Secretary Tom Vilsack made the announcement Thursday, saying the program helps provide reliable and affordable electricity to rural customers.

Steve Meyers, UEC spokesman, said the loan will pay for system improvements in 2016 and 2017. It is the co-op’s primary source of funding long-range construction projects.

“UEC is in its most intensive period of building and upgrading since the 1970s,” Meyers said. “This loan reflects that.”

In recent years, UEC has rebuilt six miles of power lines on Weston Mountain and completely rebuilt its Coyote Springs Substation east of Boardman. The Juniper Canyon Substation was also refurbished in 2014.

Meyers said there is still work to be done around Hermiston and Irrigon. Meanwhile, the co-op recently broke ground on its 30th substation, named Tumbleweed, at the Port of Morrow. It also plans to build a 1-megawatt solar array east of Umatilla.

Much of UEC’s existing infrastructure was built in the mid-1970s with the rapid expansion of irrigated agriculture in northeast Oregon. The co-op built eight substations just in 1974.

Though the equipment is built to last, it does eventually wear out. In a recent column, UEC manager Steve Eldrige said upgrading equipment now will leave customers better off than dealing with the consequences of an outdated system.

“Our demand for energy is increasing across every customer class,” Eldrige said. “We’re building for 20-30 years into the future, a careful, planned series of investments to retain the reliability our members deserve and expect.”

UEC serves roughly 10,000 customers in Umatilla and Morrow counties, and operates 2,200 miles of power lines. Demand typically peaks around 250 megawatts during the summertime irrigation season.

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Contact George Plaven at gplaven@eastoregonian.com or 541-966-0825.

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