San Miguel Electric Cooperative, Inc. is Awarded USDA New ERA Funding, Which Will Support its Conversion from Lignite-fueled Power to Solar and Battery
CHRISTINE, Texas [December 23, 2024] – San Miguel Electric Cooperative, Inc. (SMECI) has been awarded a more than $1.4 billion investment by the United States Department of Agriculture (USDA) Rural Utilities Service (RUS) program, which will provide grants and low-interest loans to expand energy that prioritizes greenhouse gas reductions. The Empowering Rural America (New ERA) program is offered through the Inflation Reduction Act.
San Miguel is a not-for-profit generation and transmission rural electric cooperative located in Atascosa County, Texas that operates a mine-mouth lignite-fired power plant. New ERA program funding will assist SMECI in converting its lignite operations to a 400 megawatt (MW) solar generation and 200 MW battery storage facility to provide clean, reliable, and affordable renewable energy to 47 rural South Texas counties.
“The USDA funding represents a new era for the San Miguel Electric Cooperative, which has long been the backbone of electric generation for generations of South Texans,” said Craig Courter, General Manager/CEO. “New ERA program funding will allow us to virtually eliminate our greenhouse gas emissions, while continuing to provide affordable and reliable power to rural South Texans.”
SMECI, which began commercial operation in 1982, currently produces 391 MW of electricity through a Wholesale Power Contract with South Texas Electric Cooperative (STEC), which, in turn, supplies power to its distribution cooperative members who provide retail service to more than 340,000 rural Texas customers. As SMECI converts from lignite to solar, it will enter into a new Wholesale Power Contract with STEC to supply the output of the proposed solar and battery storage facility, which is expected to be operational by 2027.
SMECI will use part of the New ERA funding to refinance debt from its stranded lignite infrastructure. The conversion will not affect SMECI’s ongoing mine reclamation program, which is secured by bonds that will not be released until regulators have determined that the mine reclamation is complete.
Reclamation is a vital part of a mining operation’s culture and – for SMECI – a passion. The cooperative works closely with its landowners to restore mined land to their preferred specifications. This can include pastureland, which uses vegetation, such as grasses, to provide feed benefits to ranch animals and build soil stability.
“San Miguel will continue to be an integral part of the energy needs of the South Texas communities we have served since 1982,” said Courter. “With this conversion, we look forward to many more years of providing energy at an affordable rate in a state that continues to grow at an unprecedented pace.”
# # #
About San Miguel Electric Cooperative, Inc.
San Miguel Electric Cooperative, Inc. is a member-owned mining and power generation cooperative that serves the people of ’Texas’ rural communities, working and living in partnership with its members. Through integrity, hard work, and a commitment to safety, San Miguel maintains a dependable power supply at the lowest possible and competitive cost. Visit San Miguel Electric Cooperative for more information.