This article by Allen Best appeared on BigPivots.com on January 29, 2025.
Electrical cooperatives in Colorado have been promised well more than a billion dollars in federal aid through the New ERA program.
The carve-out in the Inflation Reduction Act of 2022 was intended to help electrical cooperatives, who mostly serve rural America, make the energy transition from coal to less-polluting sources. Colorado-based Tri-State Generation and Transmission lobbied hard for the New ERA (Empowering Rural America) funding and will be a major beneficiary. It is in line to get $670 million.
Will the money eventually arrive? Donald Trump in his first days as president ordered a freeze on distribution of funds.
Kent Singer, the executive director of the Colorado Rural Electric Association, an organization representing the state’s 22 electrical cooperatives, expressed optimism.
“The New ERA funds have been obligated, that is, committed, but not yet disbursed pending the administrative review,” he told Big Pivots in response to an e-mail query.” We will certainly be advocating for a prompt review followed by disbursement of the funds.”
Mark Gabriel, the CEO of United Power, one CREA’s members, was more guarded.
“We have signed the letter of commitment as has RUS/USDA. We are all awaiting the next phase of underwriting and getting the check.”
I pressed him a bit. “Is it fair to say that until you have the check in hand that you can NOT count on it?”
He did not answer directly. United is supposed to be getting $262 million to help it procure 760 megawatts of additional renewable generation.
Also along the Front Range, Sedalia-based CORE Electrical cooperative is to get $225 million to get 550 megawatts of wind and solar.
In Grand Junction, Tom Walch used the same words he had in December when I posed the question about whether he was concerned about the money not arriving. “Cautiously optimistic,” he said then — and again on Jan. 27. He’s the chief executive of Grand Valley Rural Power, which is in line to get $13 million for a solar project in Delta County. This time, he was more expansive about why he’s optimistic.
“No. 1, we signed a contract with the government, with the Rural Utilities Service and the U.S. Department of Agriculture. We made commitments based upon their commitment, their obligation. They provided confirmation in writing that they would deliver the money. I sure would like to believe you could rely upon a contract with a government. If we can’t, we have bigger problems.”
Second, he went on to say, if the Trump administration were going to try to claw back the funding promised electrical cooperatives across the nation, “it would probably take an act of Congress. An executive order wouldn’t do it. And Congress is evenly divided.”
In the case of Colorado’s Third Congressional District, where Grand Junction is located, at least three electrical coops expect New ERA funding. The district is represented by Jeff Hurd, a Republican (and former attorney for Delta-Montrose Electric Association).
“That’s just one example. Across the country there will be a lot of congressional districts represented by Republicans” that will be unlikely to support withdrawing the grants and loans.
“I just don’t see the federal government devoting a lot of effort to taking a lot of money away from electric ratepayers. If they want to take it away from solar or wind developers, where there are individuals or corporations who are receiving a windfall, that I could understand. But this funding is going to directly reduce costs of power” for individual cooperative members.
Steamboat Springs-based Yampa Valley Electric Association is also to get $50 million. Mountain Parks Electric, San Miguel Power Association, Poudre Valley Electric, and San Luis Valley Rural Electric are also to get New ERA program aid.
Tri-State Generation and Transmission has been promised the most money. It is encumbered with debt on coal-burning assets that have been stranded by newer, less-costly renewables. On the other hand, as one of its officers pointed out to me this past week, it also enjoys strong transmission infrastructure that will, if anything, become more valuable as Colorado moves both toward more renewables and also a regional market.
Lee Boughey emphasized the role that New ERA funding will provide as Tri-State pivots its energy generation and works to meet significant load growth in many rural areas.
Most interesting may be the perspective of U.S. Rep. Jeff Hurd, who was elected from the Third Congressional District in November. A Republican from Grand Junction, he had formerly served as an attorney for the Delta-Montrose Electric Association.
Hurd has already shown he is willing to break from Trump, at least on some matters. Last week, after Trump’s pardons of the Jan. 6 rioters, Hurd said he was “deeply disappointed” in the pardons “for those who assaulted law enforcement officers and for those who fought to stop the constitutional certification of the 2020 election.”
“I’m a rule of law Republican,” said Hurd, according to a Colorado Public Radio account “January 6 was a dark day in American history, and it was an assault on our republic and the peaceful transfer of power.”