GILLETTE, Wyo. — The U.S. Department of Agriculture announced today that it will give rural electric cooperatives $9.7 billion to make energy efficiency improvements to eligible generation and transmission systems; to purchase, build or deploy renewable energy, zero-emission systems, carbon capture storage systems; or to purchase renewable energy.
The funding is part of an $11 billion package for territories where at least 50% of consumers are rural.
It’s the single largest investment in rural electrification since the Rural Electrification Act of 1936. Funding is available through loans and grants.
The department will also open a Letter of Interest process for the Powering Affordable Clean Energy program, which makes $1 billion available in partially forgivable loans to renewable-energy developers and electric service providers to help finance large-scale solar, wind, geothermal, biomass and hydropower projects and energy storage in support of renewable energy systems.
Tri-State CEO Duane Highley, the leader of Tri-State Generation and Transmission Association, a Colorado-based nonprofit cooperative wholesale power supplier that has eight members in Wyoming, participated in the event.
“USDA’s exemplary work advances opportunities and addresses challenges as Tri-State pursues our clean energy transition,” Highley said. “As a leader in the cooperative energy transition, Tri-State led efforts among stakeholders to advocate and engage with policymakers and the USDA to ensure that these policies and programs, which are the most impactful to electric cooperatives since the Rural Electrification Act of 1936, quickly and effectively expand investment in the rural communities and ensure a just transition in the changing energy economy. Together, we can drive investment, bolster jobs and preserve the reliable, affordable power that drives rural prosperity. With today’s announcement implementing specific programs, Tri-State will vigorously pursue funding that supports reliable, affordable and responsible power.”
Tri-State advocated for specific provisions that advance investment in rural communities, including the direct payment of renewable energy tax credits to not-for-profit electric utilities, and funding to support cooperative investment in clean energy. The provisions create greater opportunities for implementation of Tri-State’s Responsible Energy Plan, which includes the rapid addition of clean energy resources, steep reductions in greenhouse gas emissions, advancement of beneficial electrification technologies and participation in organized power markets in the West.
Tri-State was the leading utility services provider nationwide in supporting the cooperative provisions of the Inflation Reduction Act of 2022, Tri-State spokesman Mark Stutz said in an email today.
Eligible entities must submit a Letter of Interest between July 31 and Aug. 31. For the PACE program, USDA will begin accepting Letters of Interest June 30 on a rolling basis until Sept. 29.
Tri-State Generation and Transmission Association’s Wyoming members are Big Horn Rural Electric Company in Basin, Carbon Power & Light in Saratoga, Garland Light & Power Company in Powell, High Plains Power in Riverton, High West Energy in Pine Bluffs, Niobrara Electric Association in Lusk, Wheatland Rural Electric Association in Wheatland and Wyrulec Company in Torrington.
Tri-State has a rate moratorium through May 31 due to a settlement. It plans to file a new rate case by Sept. 1 that could become effective in January 2024. In December 2022, the Tri-State board approved keeping wholesale rates flat in 2023, despite higher fuel and market power costs, the cooperative said. The commission decreased wholesale rates by 4% between March 2021 and December 2022.
According to a news release regarding the supplier’s 71st annual members meeting, Treasurer Stuart Morgan said that the rate decrease led to total savings of $62.6 million for Tri-State utility members. This was the seventh year in which the association hasn’t raised wholesale rates for members. Tri-State returned $10 million in patronage capital to its members for 2022.
In February, Tri-State identified the need for a 200-megawatt wind facility in its Wyoming/Nebraska planning region in early 2026. The planned location has not yet been announced.
