The electric cooperatives of Iowa are committed to attracting economic development to the rural areas they serve, which improves rural communities through local jobs and tax revenue.
Iowa Area Development Group (IADG)
In 1985, Iowa's electric co-ops joined forces with other utility groups in the state to form the Iowa Area Development Group
. IADG is committed to providing consultation and assistance to help businesses and communities achieve their project development goals. IADG's team of economic development professionals provides a wide range of services including available site and building identification, financial incentive packaging, marketing, community resource assessment and other tools vital to development success. In the past 30 years, IADG has assisted with over 2,00 economic development projects which has resulted in over $10 billion of investment in rural Iowa. Over 50,000 jobs have been retained or created because of IADG's efforts since 1985. Learn more at www.iadg.com
Economic Impact Study
In 2010, IAEC published an Economic Impact Study, detailing how Iowa's electric cooperatives contribute to the state's economy. We enlisted the expertise of Strategic Economics Group, which is headed by Harvey Siegelman, former state economist of Iowa. Dan Otto, the company’s senior economist, was also involved. Their mission was to create, compile and analyze surveys sent to distribution and generation and transmission cooperatives serving Iowa. They also considered data from federal filings and historical files.
2010 IAEC Economic Impact Study
United States Department of Agriculture (USDA)
Over the decades, not-for-profit electric cooperatives have partnered with USDA Rural Development to invest in rural economic development through their REDLG programs. The Rural Economic Development Loan (REDL) and Grant (REDG) programs provide funding to rural projects through local utility organizations, which often includes not-for-profit electric co-ops. Under the REDLoan program, USDA provides zero interest loans to local utilities, which they, in turn, pass through to local businesses (ultimate recipients) for projects that will create and retain employment in rural areas. The ultimate recipients repay the lending utility directly, and the utility is responsible for repayment to the Agency. Under the REDGrant program, USDA provides grant funds to local utility organizations which use the funding to establish revolving loan funds (RLF). Loans are made from the revolving loan funds to projects that will create or retain rural jobs. When the revolving loan fund is terminated, the grant is repaid to the Agency.
Additionally, USDA’s Rural Utilities Service (RUS) administers programs that provide much-needed infrastructure or infrastructure improvements to rural communities. RUS's Electric Program provides capital and leadership to maintain, expand, upgrade and modernize America’s vast rural electric infrastructure. The loans and loan guarantees finance the construction or improvement of electric distribution, transmission and generation facilities in rural areas. The Electric Program also provides funding to support demand-side management, energy efficiency and conservation programs, and on-and off-grid renewable energy systems. Loans are made to cooperatives, corporations, states, territories, subdivisions, municipalities, utility districts and non-profit organizations.