Electric co-ops face compliance challenges in securing federal funding

According to Utility Dive, electric cooperatives frequently encounter difficulties with compliance when pursuing federal funding, which has become more stringent under recent programs. Aalap Shah, CEO of Fedsprout, notes that while most co-ops qualify for funding, many either do not apply or lose part of their awards due to disallowed costs.

Shah emphasizes that successful funding outcomes depend on four key factors: capacity, clarity, cash, and compliance. Many rural and small co-ops have limited capacity, as the same staff member often manages multiple roles including writing applications, finance, and award management.

Clarity is another challenge, as hundreds of federal and state programs are available annually, requiring dedicated effort to identify suitable options and understand funder priorities. Compliance involves navigating complex federal and state regulations, which can be an arduous task for co-ops.

The U.S. Energy Information Administration projects record electricity demand and rising residential electricity prices, highlighting the need for co-ops to secure funding to support load growth and reliability improvements while maintaining affordable rates for members.