Minnesota Department of Commerce

25/10/2024 | Press release | Archived content

Connexus Energy one of six electric cooperatives moving forward for $1 billion in USDA’s Empowering Rural America clean energy investments

St. Paul, MN: Today U.S. Department of Agriculture (USDA) Rural Development State Director for Minnesota Colleen Landkamer announced that Connexus Energy is moving forward in the Empowering Rural America (New ERA) Program award process to invest in clean energy as part of the Investing in America Agenda.

USDA has selected a total of six rural electric cooperatives to move forward in the awards process for nearly $1 billion in New ERA funds. New ERA was made possible by President Biden's Inflation Reduction Act, which makes the largest investment in rural electrification since President Franklin Delano Roosevelt signed the Rural Electrification Act into law in 1936. 

"Through today's announcement, USDA is delivering on its commitment to ensuring rural communities are directly benefitting from a clean energy economy" State Director Landkamer said. "USDA's decision to move forward with Connexus Energy as a New ERA candidate will strengthen Minnesota's energy security while increasing access to affordable and reliable clean energy for people across the state."  

This New ERA investment will be used by Connexus Energy, Minnesota's largest electric cooperative, to procure over 227 megawatts of renewable resources including hydro, solar, and wind energy and purchase 20 megawatts of battery energy storage in rural areas of Minnesota. These projects will power nearly 80,000 homes annually.   

Through these projects, Connexus Energy will create up to 370 short and long-term jobs, stabilize costs to rural cooperative members, and reduce carbon emissions by over 1.1 million tons each year. These projects will reduce greenhouse gas pollution equivalent to 250,000 gasoline-powered cars annually.       

The New ERA program is designed to meet Connexus Energy's long-term power supply needs and reduce costs by investing in the local distribution grid, while complying with Minnesota's 100% carbon-free mandate. These projects, which are included in Connexus Energy's 10-year resource plan, are expected to lower members' power supply costs by 25% over the next 20 years, creating significant savings. These programs will not only enhance affordability but also ensure a more sustainable energy future for its members.  

"As a New ERA selectee, Connexus Energy is excited about the potential impact to our membership," said Connexus Energy Interim Co-CEO's Yan Paul Martinez and Brian Burandt. "If awarded, the New ERA investments will substantially benefit our 146,000 members on the pathway to decarbonizing our power supply portfolio while maintaining affordability and alignment with our board-approved Resource Plan. We look forward to working with the USDA in making these investments happen to benefit our membership and the communities where these projects will be developed."   

"New ERA empowers Minnesota communities, from the stronger electric grid that powers Minnesota homes and businesses, to cleaner energy and a cleaner environment for all," said Governor Tim Walz. "Bringing these federal clean-energy funds to Minnesota would make a difference for our children and all Minnesotans for generations to come." 

"This funding would help Connexus install leading-edge technology, while keeping costs down for its members as it seeks to meet Minnesota's ambitious carbon free goal," said Minnesota Rural Electric Association (MREA) CEO Darrick Moe. "Investments like New ERA are crucial for Minnesota's cooperatives to maintain affordable and reliable power."

USDA announced six electric cooperatives that are moving forward in the New ERA process. The six cooperatives are:

Connexus Energy, serving rural communities in Minnesota
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, and
Yampa Valley Electric Association, serving rural communities in Colorado 
USDA will be investing nearly $1 billion in grants and loans for these six new selectees, which will leverage investments of $6.4 billion for 1.75 gigawatts of clean energy for rural communities across the country. The selectees announced today will reduce and avoid at least 6.4 million tons of greenhouse gases annually.

USDA expects to continue making New ERA program awards in the coming months. 

Contact

Mo Schriner, Communications Director
Minnesota Department of Commerce
651-363-1227