Rural Texas Electric Co-op to Invest in Solar and Storage, Replace Coal

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Christine, Texas – Yesterday, the San Miguel Electric Cooperative in South Texas received funding to build a large solar and battery facility, replacing its existing lignite plant. The grant from the U.S. Department of Agriculture (USDA) provides more than $1.4 billion to the co-op. San Miguel’s transition away from coal is a historic investment for the cooperative and a step in the right direction for nearby communities that have called on the co-op to clean up the lignite plant and mine’s air and water pollution that can harm human health. San Miguel’s plan and USDA’s support gives energy providers a model for how to shift away from expensive, polluting coal in a strategic way that strengthens the Texas grid and insulates customers from fuel price risk.

This marks the 389th U.S. coal plant to retire or commit to retire since the Sierra Club’s Beyond Coal Campaign launched in 2010. While San Miguel will still need to take steps to establish the timeline for shutting down of the coal plant – including submitting paperwork to the grid operator known as ERCOT – the announcement finalizes the planned grant award that USDA announced in September and formalizes the co-op’s commitment to convert the lignite-burning facility to cleaner, cheaper forms of electricity.

The future solar and battery project means that about 340,000 customers in 47 South Texas counties will have a reliable and affordable source of energy for years to come. The transition away from coal will also improve air and water quality for nearby rural communities. The San Miguel coal plant is the state’s fourth largest polluter of mercury, which acts as a dangerous neurotoxin that can cause developmental delays, seizures, blindness, and additional significant symptoms, and one of the top mercury polluters in the United States. San Miguel has two legacy coal ash ponds that sit below the water table and contribute to some of the most contaminated groundwater in the country, including cobalt that is 488 times what is considered a safe level. It is also involved in water pollution concerns and land degradation

The funding comes through USDA’s Empowering Rural America (New ERA) program. San Miguel’s coal plant has a maximum output of 410 MW, so this project will add considerable renewable energy and battery storage capacity to the grid. Under the New ERA program, SMEC will have one year to develop its Community Benefits Plan through engaging with community stakeholders.


STATEMENTS

“Today we celebrate the truly collaborative work that secured this historic victory. From the forward-thinking of the San Miguel Electric Co-op to the determination of surrounding communities to the embracing of the New ERA program on national and local levels, thousands of Texans will soon be breathing cleaner air,” said James Perkins, a Texas campaign organizer for the Sierra Club. “While we take a moment to sit with and savor this important news for South Texas and our state, we know that come 2025 we will be moving forward to create a robust Community Benefits Plan to ensure that the retirement benefits local residents, landowners, and workers. Texans want healthy air and water and affordable, reliable energy –  and we’re ready to come together to get it done.”

“For years folks in my county have been worried about water contamination from San Miguel’s lignite mine, so with this announcement we are hopeful that McMullen County’s water will be clean long into the future,” said McMullen County Judge James Teal. “We look forward to working on a strong Community Benefits Plan that we hope will implement a quality remediation process for the existing plant and mine and provide us with peace of mind that the mess has been cleaned up. Going into the Christmas holiday with a positive step like this one is very welcome news for our landowners and residents.”

“South Texas is ripe with potential to develop affordable, reliable, clean energy, and this news represents a major signal to state leaders and federal leaders that this part of the country is ready for a 21st century energy economy,” said Dave Cortez, Director of the Sierra Club Lone Star Chapter. “From Atascosa County to the Rio Grande Valley, ratepayers in rural electric cooperatives like San Miguel, Magic Valley, and other South Texas Electric Cooperatives stand to benefit from these low-cost, reliable energy resources. We applaud San Miguel’s leadership team and look forward to the years ahead as South Texans tap into the potential for thousands of good-paying jobs in geothermal, energy efficiency, solar, battery storage, and wind power.”

About the Sierra Club

The Sierra Club is America’s largest and most influential grassroots environmental organization, with millions of members and supporters. In addition to protecting every person's right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit www.sierraclub.org.