The U.S. Department of Agriculture has announced a new awardee and additional finalists for funding from the $9.7 billion Empowering Rural America (New ERA) program to help electric cooperatives deliver clean, reliable power to their members.
On Oct. 25, the USDA awarded nearly $2.5 billion in New ERA grants and loans to Tri-State Generation and Transmission Association in Colorado. The money will help Tri-State purchase 1,280 megawatts of wind and solar energy and more than 100 MW of energy storage. The bulk of the funding will help Tri-State refinance the retirement of 1,100 MW of coal-fired energy generation.
Tri-State serves 41 co-ops and public power districts that collectively deliver power to 1 million consumers in Colorado, Nebraska, New Mexico and Wyoming.
“This is a momentous day for Tri-State, for our members, and for the future of rural electric cooperatives,” Tri-State CEO Duane Highley said Friday at an event announcing the New ERA awards.
“Most importantly, this is all about our rural communities and how we can accomplish an accelerated energy transition that ensures reliability in an affordable manner and finally allows rural America to own and directly see the benefits.”
Agriculture Deputy Secretary Xochitl Torres Small attended the awards ceremony at Tri-State’s headquarters in Westminster, along with Sen Michael Bennet, D-Colo., Reps. Yadira Caraveo, D-Colo., and Brittany Pettersen, D-Colo., and community partners.
“By fostering clean energy solutions through the New ERA program, we are not only creating sustainable economic opportunities but also ensuring that our rural areas remain resilient and forward looking,” said Crestina M. Martinez, Colorado State Director for USDA Rural Development. “Together with our local partners, we are building a stronger, greener future for generations to come.”
Tri-State played a lead role in developing the concept that became the New ERA program, and Tri-State and NRECA successfully lobbied Congress to include the New ERA program in the Inflation Reduction Act of 2022. NRECA also helped maximize co-op access to New ERA as the USDA crafted implementation rules. The grant and loan program was designed specifically for electric co-ops to purchase or build new clean energy systems.
“Electric cooperatives excel at finding innovative ways to meet the needs of their members and power their communities, while strengthening America’s electric grid,” NRECA CEO Jim Matheson said. “The New ERA program is a transformative opportunity for electric co-ops that allows them to tailor energy solutions to meet local needs.”
Tri-State’s award was part of the $7.3 billion first round of New ERA funding. USDA also announced the Category 2 finalists on Oct. 25 for around $1 billion in New ERA awards:
- Central Electric Power Cooperative (Columbia, South Carolina) plans to procure over 545 MW of nuclear and solar energy in rural South Carolina and over 150 MW of battery storage.
- Connexus Energy (Ramsey, Minnesota) plans to procure over 227 MW of renewable resources and purchase 20 MW of battery storage in Minnesota and South Dakota.
- Nebraska Electric G&T Cooperative (Columbus, Nebraska) plans to procure 725 MW of wind and solar energy in Nebraska.
- Poudre Valley REA (Fort Collins, Colorado) plans to procure 108 MW of wind energy and construct 5 MW of new battery storage across rural Colorado.
- Rayburn Electric Cooperative (Rockwall, Texas) plans to construct 160 MW of new battery storage in Texas.
- Yampa Valley Electric Association (Steamboat Springs, Colorado) plans to procure up to 150 MW of solar energy and 75 MW of battery storage for northwestern Colorado and southwestern Wyoming.
Molly Christian and Erin Kelly are staff writers for NRECA.