Power Companies Got $676 Million in U.S. Virus Relief Funds

(Bloomberg) -- Power distributors and generators received at least $676 million in U.S. coronavirus-related small business loans, government data released Monday showed.

Over 3,800 companies got funds including electric utilities, wind, solar, hydroelectric and fossil fuel power producers, according to the data. Small electric co-ops grabbed the biggest share within the industry, with a total of at least $318 million in assistance. Coal-mining companies nabbed upwards of $170 million in loans, the data showed.

Utilities have fared better during the economic downturn than many sectors, even as electricity demand plummeted in March after states started shutting schools, businesses and factories to slow the spread of the virus. That’s largely because stay-at-home orders boosted residential sales, which have higher margins. Power demand has rebounded since states started reopening their economies, but a surge of new virus cases is threatening to stall the recovery.

Demand for electricity plummeted in March after states started shutting schools, businesses and factories to slow the spread of the virus. Uncertainty around the pandemic has also curbed the development of new power plants. Power demand has rebounded since states started reopening their economies but a surge of new virus cases is threatening to stall the recovery.

Within the power sector, companies that provide other electric power generation got at least $162 million in assistance, solar power companies got $113 million and transmission providers received $28 million.

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