Rural Development:

Financial Condition of the Rural Utilities Service's Electricity Loan Portfolio

T-RCED-97-198: Published: Jul 8, 1997. Publicly Released: Jul 8, 1997.

Additional Materials:


Robert A. Robinson
(202) 512-9894


Office of Public Affairs
(202) 512-4800

Pursuant to a congressional request, GAO discussed the Department of Agriculture's (USDA) Rural Utilities Service's (RUS) electricity loan program, focusing on the financial: (1) condition of the electricity loan portfolio; and (2) characteristics of borrowers having electricity loans.

GAO noted that: (1) the total amount of the outstanding principal on RUS' electricity loans was $32.3 billion at the end of fiscal year (FY) 1996; (2) of this amount, about $8 billion, or almost 25 percent, was owed by 12 borrowers that were experiencing financial problems (i.e., they were delinquent, in bankruptcy, or likely to default on loan repayment in the future); (3) these 12 electricity loan borrowers represent less than 2 percent of the total number of electricity loan borrowers; (4) this relatively high dollar amount of problem loans exits even though RUS had written off some borrowers' debts in recent years; (5) specifically, RUS wrote off almost $1.05 billion in electricity loans during the 5-year period from FY 1992 through FY 1996; (6) the financial characteristics for most of the borrowers were favorable, but some were not; and (7) the year-end reports from the borrowers to RUS showed: (a) almost 99 percent of the 855 electricity loan borrowers had positive equity at the end of 1995; (b) a total of 841 borrowers had equity of $1 million or more; (c) about 96 percent of the 855 electricity loan borrowers made a profit in 1995; (d) a total of 789 borrowers made a profit of $100,000 or more; (e) however, 10 electricity loan borrowers had negative equity at the end of 1995; and (f) 38 electricity loan borrowers did not make a profit in 1995.

Jul 16, 2020

Jun 25, 2020

Jun 11, 2020

Apr 28, 2020

Mar 9, 2020

Jan 28, 2020

Oct 8, 2019

Jul 23, 2019

Looking for more? Browse all our products here