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Public Power Utilities Receive Funding from DOE for Projects

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Public power utilities are included among the recipients for project funding announced by the U.S. Department of Energy on Oct. 18.

DOE announced nearly $2 billion for 38 projects “that will protect the U.S. power grid against growing threats of extreme weather, lower costs for communities, and increase grid capacity to meet load growth stemming from an increase in manufacturing, data centers, and electrification,” it said.

The selected projects announced through the Grid Resilience and Innovation Partnerships (GRIP) program will deploy new, innovative transmission and distribution infrastructure and technology upgrades to enable over 7.5 gigawatts of grid capacity, speed up interconnection for new clean energy projects, “support nearly 6,000 good-paying jobs, and catalyze over $4.2 billion in total public and private investment to bring reliable, affordable, clean energy to Americans,” DOE said.

The projects, which span 42 states and the District of Columbia, include the six recently announced projects across the Southeast for utilities that were impacted by Hurricanes Helene and Milton.

Included among those six projects is funding for Florida public power utility Gainesville Regional Utilities, which was awarded a $47.5 million grant to bolster electric grid resilience, increase funding to community-based programs and support workforce development.

TVA, Local Power Companies

On Oct. 18, DOE announced that the Tennessee Valley Authority and 10 local power companies were selected for a $250 million grant from DOE’s GRIP Program to fund 84 energy security projects to ensure local communities have access to affordable, reliable and clean electricity.

This community-centric investment will help increase grid capacity up to 2,400 megawatts, mitigate extreme weather risks, and speed development of thousands of megawatts of solar and up to 800-megawatts of wind power. "These initiatives will have a direct benefit to communities and people across the region," TVA said.

“We are excited that our coalition has been selected to begin negotiations with DOE’s Grid Deployment Office,” said Jeff Lyash, TVA President and CEO. “TVA is a clean energy leader, and as our dependency on clean electricity grows, this coalition will leverage this historic funding opportunity to accelerate the delivery of affordable, reliable, and carbon-free energy to the communities we serve. This investment will improve the way we deliver clean energy, while driving greater regional economic prosperity. This is an opportunity to work together with LPC partners to transform our systems and continue our mission of powering growth across the region.”

Local power company partners that are a part of the coalition include: Aberdeen Public Utilities; Amory Utilities; Athens Utilities Board; Franklin Electric Cooperative; Mountain Electric Cooperative; New Albany Light, Gas & Water; Okolona Electric Department; Philadelphia Utilities; Water Valley Electric Department; and City of West Point Electric System.

Anticipated outcomes and benefits are as follows:

  • Power Grid: Add up to 2,400 megawatts of transmission grid capacity, reduce TVA’s solar interconnection queue, reduce outage times and create the first interconnection tie between TVA and the Southwest Power Pool, providing up to 800 megawatts of wind energy.
  • Reliability/Community: Provide an anticipated 94% reduction in localized outage durations, providing 360 disadvantaged communities with an estimated $250 million in economic benefit, with about 50% of the project benefits flowing directly to disadvantaged communities, in line with the Justice40 Initiative.
  • Job Creation: Create approximately 800 jobs over five years, of which 99.7% will be union construction labor. TVA pledges a 33% apprenticeship rate, boosting apprentice wages, and increased engagement with businesses majority owned or controlled by underrepresented groups.

TVA believes this funding "is critical as the region’s population is growing three-times faster than the national average."

In 2023, the region’s GDP grew at 3% versus the national average of 2.5%. In addition, the& University of Tennessee’s Baker School projects the region’s population is expected to grow 22% by 2050.

“The sustained growth across the region calls for innovative solutions to add transmission and distribution capacity to benefit everyone we serve,” Lyash said. “With nearly 60% carbon-free generation, we know we can do more, faster. Working together with our partners, this GRIP funding will provide even more opportunities to better serve our communities."

Fayetteville PWC Awarded Grant to Improve Electric Reliability

North Carolina public power utility Fayetteville PWC is also an awardee and will receive a multi-million dollar grant to install new software and advanced technologies to improve electric reliability for customers.

The funds will support PWC’s Situational Awareness and System Automation Solutions to install technology engineered to allow for PWC to quickly and easily manage the energy distribution system, protecting infrastructure and improving the reliability of the system. The goal is to improve the System Average Interruption Duration Index (SAIDI) by 25%. For PWC customers, this will mean they will experience shorter power outages.

“Our goal is to provide customers with safe, reliable and affordable electric services,” said Jon Rynne, Chief Officer for PWC’s Electric System Division. “The technology funded by this Department of Energy grant will allow PWC to quickly isolate an outage, quickly and safely restore services, and improve reliability for customers.”

One of the technologies made possible by this program will be the Distributed Energy Resource Management System (DERMS). DERMS will provide the platform necessary for real-time monitoring, management, and dispatch of resources. The DERMS platform will enable PWC to fully leverage its three planned new solar farms, which will come online over the next three years.

A final component of the grant is establishing a Partnership Advisory Group that will bring together local education, business, and community agencies. Through these partnerships, PWC will provide procurement, hiring, and workforce development opportunities throughout the community.

Imperial Irrigation District

California public power utility Imperial Irrigation District is another DOE funding recipient (Federal cost share: $18,379,396; Recipient cost share: $18,379,396).

IID is undertaking a transformative initiative to deploy an advanced distribution management system (ADMS).

The project will modernize and automate current processes and integrate disparate systems to help address the growing energy demands of California’s Imperial Valley, as well as parts of Riverside and San Diego Counties.

This project will enhance the operability and reliability of IID’s grid while providing direct service benefits to Disadvantaged Communities within its service territory. The project will enable IID to harness untapped renewable resources and improve outage response while also creating employment and training opportunities, contributing to local economic development and community engagement, DOE noted.

DOE said that anticipated outcomes and benefits include:

  • Streamlined system optimization for greater reliability: The automation of IID’s current fault management and system optimization, which are currently paper based, will lead to more efficient identification and repair of faults in the grid. This will result in faster resolution of issues and a more reliable service for IID customers.
  • Enabling future grid modernization: The ADMS project will serve as an important foundation for IID’s future grid modernization efforts, improving its ability to integrate future smart grid technologies.
  • Job creation and workforce development: Over its five-year project period, the ADMS initiative will create 18 contract positions, six full-time employment positions, and paid summer internships for youth. IID will engage community and union stakeholders quarterly; Quechan Indian Tribe and Cabazon Band of Cahuilla Indians; Imperial Valley College; city and county governments; and community benefit organizations. Some or all of this project will be executed in collaboration with the International Brotherhood of Electrical Workers (IBEW).
  • Empowerment of Disadvantaged Communities: The service area, located on the U.S.-Mexico border, includes 48 DACs. This includes a large Hispanic/Latino population facing significant socioeconomic hardship. The project directly benefits these populations by providing better grid reliability, job opportunities, and access to clean energy technologies, contributing to long-term community improvement.

DOE also lists an NYPA project for round two funding. Details on that project were first announced in August 2024.

Details on GRIP Program

Funded by the Infrastructure Investment and Jobs Act, the GRIP program is investing $10.5 billion in communities across the country to enhance grid flexibility and improve the resilience of the power system against growing threats of extreme weather and climate change.

The first round of GRIP funding, announced in October 2023, included $3.5 billion for 58 projects in 44 states.

In August 2024, DOE announced an additional $2.2 billion for eight additional selections.

With the selections announced on Oct. 18, DOE’s Grid Deployment Office has now announced a cumulative $7.6 billion in Federal funding for 104 projects through the GRIP program.

DOE expects to launch a third round of GRIP funding in 2025

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