Legal Definitions - Rural Utilities Service

The Rural Utilities Service (RUS) is an agency within the U.S. Department of Agriculture. Its primary function is to support the development and improvement of essential infrastructure in rural communities across the United States. It achieves this by providing direct loans or guaranteeing loans made by other lenders to utility companies that deliver critical services, such as electricity and telecommunications, to residents and businesses in less populated areas.

• Example 1: Upgrading Rural Electrical Grids
  A cooperative electric utility serving a sparsely populated region in northern Minnesota wants to replace its aging power lines and transformers to improve reliability and reduce energy loss during severe winter storms. The cost of this infrastructure upgrade is substantial, and traditional commercial loans are difficult to secure due to the low population density of their service area. This illustrates the RUS's role by showing a rural electric utility seeking financial assistance to modernize its infrastructure, a key part of the agency's mission to ensure reliable power in underserved areas.
• Example 2: Expanding High-Speed Internet Access
  A small, independent internet service provider (ISP) in rural Georgia plans to expand its fiber-optic network to connect several unserved farming communities, enabling residents to access reliable high-speed internet for the first time. Without this expansion, these communities struggle with remote education, telehealth, and economic development. Here, the RUS would provide a loan or guarantee to this telecommunications utility, directly supporting the expansion of broadband internet access to rural areas, which is crucial for modern communication and economic vitality.
• Example 3: Modernizing Rural Water Systems
  A small town in rural Kansas operates its own municipal water utility, which relies on an outdated pumping station and deteriorating pipes, leading to frequent water main breaks and concerns about water quality. The town needs significant funding to replace the infrastructure and ensure a safe, reliable water supply for its residents. While the primary focus of the RUS is electric and telecommunications, it also supports water and wastewater systems. This example demonstrates how the agency can provide financial backing to a rural utility to upgrade essential public services beyond just power and internet.