DMEA Withdraws from PACE Program
After extensive financial analysis and review, Delta-Montrose Electric Association (DMEA) decided to withdraw from the Powering Affordable Clean Energy Program (PACE) because it would have ultimately imposed additional, and unjustifiable rate pressure on members.
“Withdrawing from this award was not an easy choice, but ultimately not all governmental funding is a good fit, and it’s our job to determine what is in the best interest of our members,” said DMEA CEO Jack Johnston. “Our membership always comes first, and we were concerned that this project would cause upward rate pressure for our members. While we remain committed to innovation and exploring other opportunities for local, renewable generation, this project didn’t check all the boxes to make it financially beneficial for our membership.”
In June 2024, DMEA announced that it had been awarded a partially forgivable $72 million loan from the PACE program, which it would use to fund a 20-megawatt (MW) solar photovoltaic array with an additional 80 megawatt hours (MWh) of battery storage. The array was to account for approximately 10 percent of DMEA’s overall load and produce enough energy for 7,000 homes. The total cost of the array was estimated at $96 million, and with the loan, 40% of the cost would be forgiven.
At the time of the initial award, DMEA intended to leverage tax credits and other funding sources to cover an additional 50%, potentially recovering nearly 90% of the total construction costs. Unfortunately, these opportunities became uncertain, adding additional risk to the project. Moreover, since the award, construction costs have continued to increase, putting additional pressure on the projected budget.
DMEA evaluates all projects and prioritizes those that benefit our membership. DMEA will continue to explore other opportunities to keep providing safe, reliable, and affordable energy for our membership.
