BENSON, AZ – The Arizona Electric Power Cooperative (AEPCO) has received a $485 million grant from the U.S. Department of Agriculture (USDA) through its New Empowering Rural America (New ERA) Program. This funding will support the development of large-scale solar and battery storage projects, impacting rural electric cooperatives and public power utilities across Arizona and parts of California, Nevada, and New Mexico. AEPCO also plans to retire its remaining coal-fired power plants by 2028 using part of the grant.

AEPCO, a not-for-profit generation and transmission cooperative, provides wholesale power to utilities in the region, including Lincoln County Power District. Patrick Ledger, AEPCO Executive Vice President and Chief Executive Officer, highlighted the significance of the funding, explaining that it will enable the cooperative to transition away from older power generating assets from the 1960s and 70s. “The New ERA program will enable us to make major new investments in renewable power, which will modernize our fleet, substantially lower emissions and help keep costs stable for years to come,” Ledger stated.  

The grant aims to modernize AEPCO’s power generation and reduce emissions. The planned projects include 730 megawatts of solar power and 2,910 megawatt-hours of battery storage. AEPCO anticipates these additions will decrease emissions by approximately 70%. “These new projects will produce a tremendous amount of energy, and the battery storage will enable us to move that energy to cover evening peaks or to dispatch it according to each member’s individual needs,” Ledger added.  

AEPCO emphasizes the importance of the New ERA program in enabling smaller, not-for-profit cooperatives and public power utilities to access cost-effective renewable energy projects, which they might not be able to develop independently. The cooperative states that these projects will benefit rural communities in the desert Southwest, which often face economic challenges and have limited access to large-scale renewable energy.