Leading the Charge: Dykema Guides Two Electric Cooperatives to Finalist Status in Historic $7.3 Billion USDA Clean Energy Program

Dykema is proud to announce that two of the firm’s electric cooperative clients have been selected as finalists for the prestigious Empowering Rural America (New ERA) program. Dykema played a crucial role in guiding San Miguel Electric Cooperative Inc. (SMECI) and Wolverine Power Cooperative through the complex application process, helping them secure spots among only 16 coops out of an original pool of 157 applicants. In total, New ERA funding will provide more than $7.3 Billion in funds for the 16 finalists.

This highly competitive initiative, administered by the United States Department of Agriculture (USDA), aims to provide significant financing to rural electric cooperatives to advance clean energy and reduce greenhouse gas emissions. According to the USDA, the New ERA program, made possible by the Inflation Reduction Act, represents a historic investment in rural electrification, the largest since the New Deal.

Dykema has assisted two of the finalists in this process by providing critical assistance in navigating the USDA’s rigorous selection process—San Miguel Electric Cooperative Inc., located in South Texas, and Michigan-based Wolverine Power Cooperative.

San Miguel is planning a landmark transition from its current lignite coal operations to a state-of-the-art 400-megawatt (MW) solar generation and 200-MW battery storage facility. If awarded funding, this project will virtually eliminate San Miguel’s greenhouse gas emissions while continuing to provide affordable, reliable energy to more than 340,000 rural Texans. In addition to the renewable energy shift, San Miguel plans to use the funding to refinance debt tied to its lignite infrastructure and continue its commitment to land reclamation for local ranching and agricultural use​.

For Wolverine, the grant will be instrumental in its efforts to balance decarbonization with affordability and reliability. Once Wolverine’s Palisades Nuclear Power Plant reopens, this funding will help keep the carbon-free power generated by the plant affordable for nearly 300,000 homes and businesses in rural Michigan. As a non-profit wholesale electric supplier, Wolverine will pass 100% of the grant funds directly through to the homes and businesses served by its member electric cooperatives—helping to reduce wholesale power costs and keep electricity reliable and affordable.

Both coop clients will learn more in the months to come as two more rounds of New ERA funding are set to be announced.