| ***USDA    Rural Utilities Service    Electric Program****Service***
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**Program and Customer Service****Progress and People**
The RUS Electric Program makes insured loans and guarantees of    loans to nonprofit and cooperative associations, public bodies, and other utilities.    Insured loans primarily finance the construction of facilities for the distribution of    electric power in rural areas. The guaranteed loan program has been expanded and is now    available to finance generation, transmission, and distribution facilities in rural    areas.  

RUS maintains a staff of general field representatives (GFR) stationed around the    country, an outreach-type program delivery system which has been part and parcel of the    program since its inception. These representatives meet regularly with borrowers at the    borrowers’ locations. In addition to assisting in the development of loan    applications and handling other loan related matters, they frequently discuss matters of    interest to borrowers - all on a one-to-one basis - and provide assistance as requested.    RUS also has a staff of field accountants for electric and telecommunications borrowers    who provide accounting advice one-to-one and other assistance at the borrower’s site.

The Electric Program is making even greater use of its GFRs in this new era of    heightened competition and pending deregulation. With so much activity at the state and    Federal level on deregulation of the electric industry, it is difficult for borrowers to    stay current on issues which will profoundly impact their business.  This is why the    flow of information to electric borrowers is critical in this area.

The electric field staff serves as an information gathering point and conduit for    the borrowers. They are in touch with their borrowers and state regulatory commissions to    gather information on local activities to inform headquarters staff, who, in turn keep the    GFRs informed of Federal actions and industry-wide trends. Borrowers also have access to    any RUS headquarters personnel at any time. This two-way flow of information is enhancing    RUS’ relationship with its local contacts and consequently improving its outreach    impact.

Copies of all RUS proposed and final rules are available to all borrowers.    Borrowers are actively encouraged to comment on these rules. Compliance guides in the form    of Bulletins are provided to all borrowers. Topics range from instructions on completing    informational requests to specifications for constructing an electric system. 

It is RUS' policy to make all information requests as convenient for the borrowers    to respond to as possible. In many cases RUS will accept information in whatever form the    borrower has it in rather than requiring a specific form. In the few cases where a    specific form is required, such as the annual financial report, borrowers have the option    of filing the information electronically. RUS provides all necessary materials including    computer disks and instructions. RUS staff is available to    answer questions by phone, FAX or e-mail.

RUS maintains close contact with industry trade associations such as the National    Rural Electric Cooperative Association (NRECA) to obtain additional borrower feedback and    exchange information on industry developments. This past year, RUS participated in the    seven NRECA regional meetings and NRECA's Annual Meeting. At each meeting a presentation    was given on current Agency activities and industry developments. RUS personnel were    available for individual consultation with borrowers.

RUS field and headquarters staff also participate with borrowers and their    statewide association in meetings and workshops covering topics such as work orders and    financial forecasting.

**Progress**
Track our progress throughout the Fiscal Year by looking at the latest    "BoxScore," a    document which displays the loanmaking details of the various RUS Electric Program loan    offerings. 

Examine some of the RUS electric borrower success stories, particularly in    the area of community and economic development, and  job creation.

**People**

Responsibility for carrying out the operation of the Electric Program are as    follows:

**CHRISTOPHER McLEAN,** RUS Administrator, directs and coordinates the Electric    Program, as well as the RUS Telecommunications, Water and Environmental programs.     The Administrator sets overall policy for the Agency, reviews policies and stimulates    change for improvements. 

The Assistant Administrator - Electric, **BLAINE D. STOCKTON, JR.**, directs    and coordinates the Electric Program, working with the Administrator and the Deputy    Administrator in planning and formulating the programs and activities of RUS.

The two Regional Offices, directed by **SALLY R. PRICE** (Northern    Regional Division) and **JAMES A. RUSPI** (Southern Regional Division), are    the primary points of contact between RUS and electric distribution borrowers. Each office    administers the rural Electric Program for an assigned geographical area with the    assistance of field representatives located in areas assigned to them (go to the Contacts page to determine the personnel in the area in which you    have an interest).

The regional offices provide guidance to borrowers on RUS loan policies and procedures and    receive, evaluate, and process insured and guaranteed loan packages and other requests for    financial assistance.

The staff in the regional offices ensure that distribution and transmission systems and    facilities are designed and constructed in accordance with the terms of the loan and    proper engineering practices and specifications. They provide guidance to borrowers on    supplemental power resources, load and energy management; and the environmental aspect of    the design, construction, and operation of their systems.

The Power Supply Division (PSD) administers    the rural Electric Program for, and is the primary point of contact between, RUS and power    supply borrowers. PSD provides guidance to borrowers on RUS loan policies and procedures    and receives, evaluates, and processes insured and guaranteed loan packages and other    requests for financial assistance from power supply borrowers.

The PSD staff develops and administers engineering and construction functions related to    planning, design, construction, operation, and maintenance for power supply borrowers.    They maintain a continuing financial and management overview of power supply borrowers to    ensure that their operations are consistent with sound fiscal policies and procedures,    loan security, and with RUS loan contracts, mortgages, and regulatory requirements. They    also provide guidance to borrowers on supplemental power resources, load and energy    management; and the environmental aspects of the design, construction, and operation of    their systems.

The Electric Staff Division (ESD), directed by **GEORGE J. BAGNALL**, is    responsible for engineering aspects of RUS's standards, specifications, and other    requirements with respect to design, construction, and technical operation and maintenance    of power-plant, distribution, and transmission systems and facilities, including load    management, energy conservation, and communications.

The staff in ESD develops engineering practices, policies, standards, and guidelines for    RUS relating to electric borrowers systems; conducts analyses and provides guidance on    matters relating to fuels for electric generating stations; and develops related policies    and procedures for RUS. They develop criteria, procedures, and analyses for improvement of    the operating performance of Electric Borrowers and for the forecasting of borrowers'    power requirements.

The Technical Standards Committee "A" in ESD also maintains and publishes a    continuously updated List of Materials compatible with current RUS    standards.
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