By Blake Jackson
East Kentucky Power Cooperative (EKPC), a Kentucky electric utility serving over 570,000 customers, has been awarded federal funding through the U.S. Department of Agriculture's Empowering Rural America program (New ERA).
The $7.3 billion program aims to support rural electric utilities in investing in renewable energy.
EKPC spokesperson Nick Comer stated that the utility is finalizing a funding agreement with the USDA. While the exact amount of funding has not been disclosed, Comer mentioned that most of the energy projects will require approval from the Kentucky Public Service Commission.
The federal funding will significantly boost EKPC's efforts to add renewable resources and reduce carbon dioxide emissions while maintaining competitive costs for rural Kentucky residents.
EKPC plans to use the funding to construct or procure 757 megawatts of renewable electricity and improve the regional transmission grid to support renewable projects and increase energy efficiency.
This investment is expected to reduce pollution by 2.3 million tons annually, equivalent to the pollution from 554,000 gasoline-powered cars.
EKPC has previously proposed building two solar installations in Fayette and Marion counties, generating a combined 136 megawatts of electricity.
While it's unclear if New ERA program funding will be used for these installations, EKPC is seeking grants, loans, or a combination of both, with a maximum award of $970 million.
While EKPC has embraced federal funding for renewable energy, it's also actively involved in a legal challenge against federal regulations aimed at curbing greenhouse gas emissions from coal-fired and new natural gas-fired power plants.
The National Rural Electric Cooperative Association and Kentucky Attorney General Russell Coleman are among the plaintiffs in this legal challenge.
EKPC's annual report in 2023 showed that 59% of its electricity was sourced from coal, a significant contributor to greenhouse gas emissions.
Appalachian Voices, an advocacy group for clean energy and environmental protection, praised the investments made through the New ERA program but argued for more aggressive action to transition rural electric cooperatives away from fossil fuels.
“Rural electric cooperatives still rely heavily on inefficient, expensive fossil fuels that create pollution and harmful waste,” said Bri Knisley, director of public power campaigns at Appalachian Voices. “Even with this enormous investment, rural electric cooperatives still have tens of billions of dollars in need to help retire fossil fuel-based facilities and replace them with clean, sustainable energy.”
Photo Credit: istock-simplycreativephotography
Categories: Kentucky, Energy