Denali Commission High Energy Cost Grants

What does this program do?
Through this program, USDA Rural Development partners with the Denali Commission to lower energy costs for people in remote Alaskan communities.

Who may apply?

Only the Denali Commission can apply for grants under this authorization. Denali uses these funds to make financial awards for high energy cost program eligible purposes to:

• For profit and nonprofit organizations
• State, local, and Tribal governments and their affiliated organizations
• Federally recognized Tribes

What is an eligible area?

• High energy cost in Alaska

What kind of funding is available?

• All funding through this program is provided in the form of grants

How may the funds be used?

• Funds can be used to offset the high cost of energy generation, transmission and distribution. The Denali Commission can use funds only for purposes that are eligible under the USDA Rural Development High Energy Cost Grant program.
• See Code of Federal Regulations 7 CFR 1709

Are there additional requirements?

• Recipients of financial awards by the Denali Commission must have legal authority to provide, construct, operate and maintain the proposed facilities or services
• Projects receiving federal financing must be for the benefit of an eligible community
• Partnerships with other federal, state, local, private and non-profit entities are encouraged

What is the national average annual home energy cost?
For the purposes of this program, the high energy cost benchmarks effective since publication of the 2025 Notice of Funding Opportunity (NOFO) are:

• Electricity   $3,795 ($0.4494 per kilowatt hour)
• Natural Gas   $1,733 ($38.03 per thousand cubic feet)
• Fuel Oil   $3,366 ($11.33 per gallon)
• LPG/propane   $2,021 ($6.88 per gallon)
• Total household energy $5,181 ($67.46 per million BTUs)

What is the current status of the program?

• Contact the Denali Commission for more information

Who can answer questions about this program?

• Call the Rural Electric Program staff at (202) 720-9545

What governs this program?

• Rural Electrification Act of 1936, as amended in 7 U.S.C. 901
• Code of Federal Regulations 7 CFR 1709

Why does USDA Rural Development do this?
This program helps to reduce household energy costs in areas where local conditions cause energy costs to exceed 275% of the national average. This type of assistance increases economic opportunity and quality of life in high cost communities nationwide by maintaining a seamless electric network for rural Americans.

NOTE: Program details may change over time. Before you begin an application, please confirm you have the most current information calling (202) 720-9545 or consulting the program instructions listed in the section above titled "What Governs this Program?"