Rural electric co-ops receive $4.37 billion in clean energy funding

Awards of more than $4.37 billion through the U.S. Department of Agriculture’s (USDA) Empowering Rural America (New ERA) program is intended to support at least 5,000 jobs, lower electricity costs for businesses and families, and reduce climate pollution by 1.1 million of tons each year.

The New ERA program, which is part of the Inflation Reduction Act, makes funding available to member-owned rural electric cooperatives based in Arizona, Colorado, Florida, Georgia, Minnesota, Nebraska, and Texas. The USDA reports that this is the largest investment in rural electrification since 1936.

“USDA is committed to enhancing the quality of life and improving air and water in our rural communities,” USDA Secretary Vilsack said. “The Inflation Reduction Act’s historic investments enable USDA to partner with rural electric cooperatives to strengthen America’s energy security and lower electricity bills for hardworking families, farmers and small business owners.”

One of the rural cooperatives receiving funding is Connexus Energy, Minnesota’s largest electric co-op, which was awarded nearly $170 million in grant money for over 282 MW of renewable hydro, solar and wind energy, and 20 MW of battery energy storage. These projects are expected to lower costs for its members, support nearly 400 jobs and reduce climate pollution by more than 1.1 million tons each year.

“Connexus Energy’s mission is to power our member-owners and communities toward a smarter energy future with a passionate focus on affordability and reliability,” said president and CEO Brian Burandt. “We appreciate that the USDA recognizes the substantial benefits our portfolio of projects provides our member-owners in decarbonizing our power supply in alignment with our board-approved resource plan. Our team is eager to put the New ERA investment to work for our membership and the communities where these projects will be developed.”

Other rural electric cooperatives receiving funding include:

CORE Electric Cooperative: A $225 million investment will procure 550 MW of wind and solar energy, and 100 MW of battery energy storage for rural communities in Colorado. The project is expected to support short- and long-term jobs, stabilize costs for members, and help meet the state’s net-zero climate pollution goals.
Georgia Transmission Corporation: Up to $325 million will go toward several projects, including new transmission lines and upgrades to existing transmission assets in approximately 20 rural communities across Georgia.
Nebraska Electric G&T: A $200 million investment will be used to procure 725 MW of wind and solar energy in Nebraskas’s Butler, Burt and Custer counties. The project will supply enough electricity to power 170,000 homes each year, reduce climate pollution by over 2.2 million tons per year, and support as many as 425 jobs.
Oglethorpe Power Corporation: A $331.5 million investment will help refinance outstanding loans for the retired Hal B. Wansley coal plant. The refinancing will result in an average annual savings of $7.7 million in expenses from 2025 to 2044, which will be passed to the 38-member cooperatives it serves.
San Miguel Electric Cooperative, Inc.: A $1.4 billion investment will be used to procure 600 MW of clean, renewable energy through solar voltaic panels and a battery energy storage system to power 47 counties across rural South Texas. The project will reduce climate pollution by more than 1.8 million tons each year, equivalent to removing 446,000 cars from the road each year, and support as many as 600 jobs.
Seminole Electric Cooperative, Inc.: This Florida cooperative will use a more than $1.3 billion investment to procure 700 MW of energy resources through a combination of utility-scale solar and battery energy storage projects across rural areas. This project will support roughly 3,400 jobs and reduce greenhouse gas emissions by more than 3.5 million tons annually, which is the equivalent of removing 740,000 cars from the road each year.
Trico Electric Cooperative Inc.: The investment of more than $43 million will be used to procure 80 MW of solar energy and 80 MW of battery energy storage in rural Arizona. The project will supply enough electricity to power nearly 11,000 homes each year, reduce climate pollution by over 132,000 tons each year, and support as many as 256 jobs.
United Power: This Colorado cooperative will use a nearly $262 million investment to offset the cost of its transition to a clean energy portfolio that will provide more than 760 MW of renewable energy resources in rural areas. The New ERA investment will help the cooperative reduce climate pollution by over 2.1 million tons each year.
Yampa Valley Electric Association: The nearly $50 million investment will help procure up to 150 MW of solar energy and 75 MW of battery energy storage for northwestern Colorado and southwestern Wyoming. The project will support disadvantaged communities, promote jobs skills through an expanded scholarship program, and reduce climate pollution by 255,000 tons each year.

In addition to the 10 cooperatives receiving loans and grants today, USDA has selected six other cooperatives to move forward in the process to receive New ERA funding. These include:

Grand Valley Rural Power Lines Inc., Mountain Parks Electric Inc. and San Miguel Power Association Inc. in Colorado,
1803 Electric Cooperative Inc. in Louisiana,
Pacific Northwest Generation Cooperative in Oregon, and
Inland Power and Light Company in Washington and Idaho.

Additional details on all funding recipients and selectees are available on the New ERA website.

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