Published: Wednesday, November 4, 2009 11:53 AM CST
SIERRA VISTA - Sulphur Springs Valley Electric Cooperative is one of three utilities to receive economic stimulus funding from the U.S. Department of Energy as part of a federal project to upgrade its electrical grid.
The grant is part of a joint effort submitted by three Arizona cooperatives, to include Sulphur Springs Valley Electric Cooperative, Southwest Transmission Cooperative out of Benson and Mohave Electric Cooperative based in Bullhead City, a community in northwestern Arizona. Of that money, $31,134,698 will be used by the three cooperatives to implement "smart grid" technology on more than 6,400 miles of transmission and distribution power lines in Arizona.
The three cooperatives will use the money to add digital upgrades to their electric grid, as well as implement smart meters for more than 34,000 customers. In addition, the money will be used for infrastructure upgrades needed to support a two-way flow of information between the grid and the co-ops' control centers.
"This critical investment by the federal government will be key in the large-scale use of solar energy," U.S. Rep. Gabriel Giffords said. "We need a 21st century distribution system to bring the full benefits of solar and other renewable energy sources to as many people as possible. Domestic renewable energy, such as solar, is essential to helping us reduce our dependence on imported foreign energy."
The grant will enable Sulphur Springs Valley Electric Cooperative to modernize its electrical distribution system sooner than planned, thereby providing numerous benefits to the cooperative's members, said Jack Blair, the utility's chief member services officer.
"This will save our customers money by allowing SSVEC to implement more robust time-of-use rates, with better management of peak demand times," he said. By managing peak demand, cooperative members will save money because the utility will not have to purchase extra electricity during times when demand is high and electricity is more expensive.
Other benefits include improved system reliability, which translates to fewer, less widespread and shorter electrical outages. In addition, utility members will save more than $15 million, money the cooperative will not have to collect in the future to pay for the upgrades.
"This is great news for SSVEC and its members," said Ron Orozco, who is SSVEC's manager of engineering. Blair credits Orozco for being "The driving force behind the grant."
The Smart Grid Investment Grant allows the utility to move forward more quickly with its upgrades, saving members large amounts of money, Orozco said.
More than 143,000 customers are served by the grid and will benefit from the improvements.
According to Southwest Transmission Cooperative, the grant could create 11 jobs directly related to developing and installing the system, plus an additional 400 jobs in related and support business.
"We've been investing in this technology and upgrading the grid from our own funds since 2005 and had planned to continue doing so through the year 2013," said Bill Riley, SWTC manager of transmission, operations and maintenance.
"The "Smart Grid Investment Grant" means we can now match those dollars, do more, and do it quicker," Riley said.
Riley says the bottom line will be savings to the customer through an enhanced ability to manage peak demand times, reduction of power system maintenance and operation costs and improved reliability and stability - resulting in fewer and shorter outages.
Funding for the project awards, which were announced Tuesday, come from funds made available through the American Recovery and Reinvestment Act, which was signed into law on Feb. 19.