Arizona Electric Power Cooperative Secures $485 Million USDA Grant

Arizona Electric Power Cooperative, Inc. (AEPCO) has been selected to receive $485 million in grant money through the US Departments of Agriculture’s (USDA) New Empowering Rural America (ERA) Program. The program is part of the Inflation Reduction Act, which marks the largest investment in rural electrification since President Franklin Delano Roosevelt signed the Rural Electrification Act into law in 1936.

On September 12, the USDA, AEPCO, and Trico Electric Cooperative (Trico) hosted a Town Hall event at Trico’s headquarters facilities in Marana, Arizona, featuring Secretary of Agriculture Tom Vilsack as the keynote speaker. Over 150 people attended the event to learn more about the New ERA grants and other USDA programs, and to have the opportunity to participate in a Q&A session with Secretary Vilsack.

“The Biden-Harris Administration understands that Western states like Arizona face unique challenges related to our changing climate,” said Secretary Vilsack. “We are investing historic resources in innovative solutions to help Arizona communities reduce wildfire risk and adapt in the face of drought. At the same time, we are looking to the future by investing in clean energy infrastructure, creating new jobs, and building prosperity in rural communities.”

Speakers also included Patrick Ledger, chief executive officer of AEPCO, who announced that the New ERA grant opportunity would enable AEPCO to retire its last remaining coal assets by the end of 2027 and make major investments in new utility scale renewable energy projects, including 730 megawatts of solar and 2910 megawatt hours of battery energy storage, which will serve 40 member cooperatives and public power utilities across the rural Southwest.

“AEPCO and its Members play an essential role in providing rural areas of the Southwest, including many disadvantaged and low-income communities, with reliable, affordable, and responsible power and energy services. With the USDA’s support, the New ERA Program has created a once-in-a generation opportunity, enabling AEPCO and its cooperative and public power members to make large investments in renewable energy projects without sacrificing reliability or affordability of power,” said Patrick Ledger. “This funding will enhance the not-for-profit, democratic, community-based utility model, and will provide stable and long-term benefits for our rural communities for years to come.”

Ledger further noted that the New ERA Program would also diversify AEPCO’s power resources and decrease its reliance on older fossil fuel resources, reducing carbon dioxide emissions by more than 1 million tons annually, or more than 70% by 2031.

As part of the New ERA Program, AEPCO has also developed an accompanying Community Benefits Plan (CBP) that includes engaging with its union partners, local community colleges, and other stakeholders to develop new renewable energy apprenticeship programs. AEPCO will also collaborate with ranchers and farmers in its member service areas to develop new training programs that will benefit rural communities and economies. 

The attendees also included representatives from a number of AEPCO’s utility members, including from Sulphur Springs Valley Electric Cooperative (SSVEC), which provides electric service to much of Cochise and Santa Cruz Counties, and whose member-consumers will ultimately benefit from the lower-cost renewable power produced through these projects. 

“The USDA’s New ERA Program significantly bolsters SSVEC’s commitment to fostering growth and resilience in Southern Arizona’s rural communities. This funding will enable us to advance access to affordable clean energy solutions while maintaining the reliability our members count on. We appreciate the USDA’s dedication to supporting cooperative utilities like ours, ensuring long-term benefits and stability for the families we serve for generations to come,” said Jason Bowling, chief executive officer of SSVEC.

Jordy Fuentes, executive director of the Arizona Power Authority, also attended the event and noted that the benefits of AEPCO’s New ERA projects will not just go to Arizona’s electric cooperative communities, but will be widely distributed throughout the rural Southwest, a region uniquely impacted by long-term drought.

“The list of power providers throughout Arizona and Nevada participating in this project speaks to the innovation, collaboration, and unique partnerships that will be the hallmark of the future energy grid. AEPCO has done an amazing job of including all the participants to provide such a far-reaching impact,” says Jordy Fuentes. “As the water and hydropower operations of the Colorado River dams continue to be negatively impacted by drought, the Arizona Power Authority is excited to participate with AEPCO on this project to provide affordable replacement power for the hydropower which public power entities throughout Arizona have not been receiving.”

About Arizona Electric Power Cooperative, Inc.

AEPCO is a not-for-profit generation, transmission, and energy services provider for electric distribution cooperatives and public utilities in Arizona, California, and Nevada. Headquartered in Benson, Arizona, AEPCO operates with its sister organization, Sierra Southwest Cooperative Services, Inc. (Sierra) under the umbrella of Arizona G&T Cooperatives.

For more information about AEPCO and its future projects, please visit www.azgt.coop.

Contacts

Arizona G&T Cooperatives
pr@azgt.coop