Arizona Electric Power Cooperative secures $485 Million USDA Grant
MARANA, AZ – Arizona Electric Power Cooperative, Inc. (AEPCO) has been awarded $485 million through the USDA’s New Empowering Rural America (ERA) Program, a major initiative under the Inflation Reduction Act. This grant marks the largest investment in rural electrification since the Rural Electrification Act of 1936.
On September 12, the USDA, AEPCO, and Trico Electric Cooperative hosted a Town Hall at Trico’s Marana, Arizona headquarters, featuring Agriculture Secretary Tom Vilsack as the keynote speaker. Over 150 attendees gathered to learn more about the New ERA grants, USDA programs, and participate in a Q&A with Secretary Vilsack.
“The Biden-Harris Administration understands the unique climate challenges faced by Western states like Arizona,” said Vilsack. “We are investing in innovative solutions to reduce wildfire risk, adapt to drought, and build clean energy infrastructure, creating new jobs and prosperity in rural communities.”
Patrick Ledger, CEO of AEPCO, announced that the grant would help retire AEPCO’s last remaining coal assets by 2027 and support major investments in renewable energy projects, including 730 megawatts of solar and 2,910 megawatt hours of battery storage for 40 member cooperatives and public power utilities across the rural Southwest.
“This funding will enhance the not-for-profit, community-based utility model and provide long-term benefits to our rural communities,” said Ledger, noting AEPCO’s goal of reducing carbon emissions by over 1 million tons annually by 2031.
AEPCO’s New ERA Program will also support renewable energy apprenticeship programs, developed in collaboration with local community colleges, unions, and stakeholders. The initiative aims to diversify AEPCO’s power resources while engaging with rural economies and communities.
Jason Bowling, CEO of Sulphur Springs Valley Electric Cooperative (SSVEC), praised the initiative: “This funding will advance access to affordable clean energy while maintaining reliability, ensuring long-term benefits for the families we serve.”
Jordy Fuentes, executive director of the Arizona Power Authority, highlighted the broader impact of AEPCO’s projects, noting that the benefits will extend throughout the rural Southwest, addressing challenges from long-term drought.
**About AEPCO:**
Arizona Electric Power Cooperative, Inc. is a not-for-profit generation, transmission, and energy services provider for electric distribution cooperatives and public utilities across Arizona, California, and Nevada. For more information, visit www.azgt.coop.