Dive Brief:
- Iowa's Lyon County, Osceola County and Iowa Lakes electric cooperatives sought $20 million in aid from the Federal Emergency Management Agency to repair damage from an April storm, but that request has been denied.
- FEMA did agree to supply $4 million to replace grid infrastructure in the northern part of the state, but the co-ops expect to have to borrow money now as they seek to harden their systems ahead of winter.
- Federal officials have reportedly told the Iowa cooperatives that proper comprehensive wire testing was not being conducted on an annual basis, as is required to qualify for the aid being sought.
Dive Insight:
This dispute in Iowa isn't over yet, though the co-ops involved may need to proceed with backup plans soon. The rejection decision can be appealed, and a six-member congressional delegation has penned a letter seeking a review, along with a FEMA meeting for the co-ops. No one wants to spent this kind of money if it can come from someone else, but at the end of the day funds for repairs will have to come from somewhere, whether it's the federal government or co-op customers.