USDA investing $3.5 billion for affordable rural energy

November 11, 2024

The U.S. Department of Agriculture is investing nearly $3.5 billion in a program to help rural communities across the United States lower electricity costs

Nearly $2.5 billion in financing is being awarded to the Tri-State Generation and Transmission Association, and the USDA has also selected six rural electric cooperatives to move forward in the awards process for nearly $1 billion in funding through the Empowering Rural America (ERA) Program.  

Tri-State’s award is expected to reduce electricity rates 10% for cooperative members across Arizona, Colorado, Nebraska, New Mexico and Wyoming by 2034, amassing $430 million in rural consumer benefits over 10 years.  

RELATED: $400 million in grants available for rural energy improvements

Funding will finance the purchase of 1,040 megawatts of renewable energy and more than 200 megawatts of energy storage. The funding will also help Tri-State refinance the retirement of 1,100 megawatts of previously and newly announced coal-fired energy generation. The investments will reduce climate pollution by nearly 5.8 million tons annually and create more than 2,000 jobs. 

As part of their New ERA award, Tri-State will develop a farmer benefit plan designed to lower electricity costs for farmers who voluntarily participate in a smart irrigation program. The goal of the program is to reduce pumping load at the times of peak demand which will help to reduce future energy needs and offset the need to build new transmission and generation infrastructure, thereby saving cooperative members from the cost in the future. 

Tri-State will work alongside farmers to encourage the most efficient use of water and electricity and provide no-cost technical support.  

Tri-State will also engage local farm associations for additional ideas as they move through the Community Benefits Plan process. 

Additionally, the USDA will be investing nearly $1 billion in grants and loans for the six new rural selectees, which will leverage investments of $6.4 billion for 1.75 gigawatts of clean energy for rural communities across the country. These selectees will reduce and avoid at least 6.4 million tons of greenhouse gases annually. 

Rural cooperatives selected include: 

  • Connexus Energy, serving rural communities in Minnesota and South Dakota. 
  • Central Electric Power Cooperative Inc, serving rural communities in South Carolina. 
  • Poudre Valley Rural Electric Association Inc., serving rural communities in Colorado. 
  • Nebraska Electric Generation, serving rural communities in Nebraska. 
  • Rayburn Country Electric Cooperative serving rural communities in Texas. 
  • Yampa Valley Electric Association, serving rural communities in Colorado. 

Photo courtesy Kenneth Allen

Miles Smith

Miles Smith has more than two decades of communications experience in the public and private sectors, including several years of covering local governments for various daily and weekly print publications. His scope of work includes handling public relations for large private-sector corporations and managing public-facing communications for local governments.

Smith has recently joined the team as a content writer for SPI’s news publications, which include Texas Government Insider, Government Contracting Pipeline and its newest digital product, Government Market News, which launched in September 2023. He graduated from Texas A&M University with a bachelor’s in journalism.

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