June 14, 2023

This paid piece is sponsored by Sioux Metro Growth Alliance.

From quality-of-life improvements to supporting new industrial parks, Xcel Energy has a decadeslong history of helping fund community needs – and plans to do even more.

“Xcel Energy has a history of working with and giving back to the communities it serves,” community relations manager Eric Pauli said. “These two programs are prime examples of some of the offerings the company uses to encourage and maintain growth throughout the region.”

Xcel Energy serves more than 100,000 customers in South Dakota, including the communities of the Sioux Falls metro area.

“Xcel Energy is a fantastic corporate citizen and a significant resource for our communities in many ways,” said Jesse Fonkert, CEO of Sioux Metro Growth Alliance. “We appreciate how they partner to address economic development needs and encourage communities to consider these opportunities.”

We caught up with Eric Pauli to learn more about the grant program and how to get involved this year.

Why does Xcel offer local economic development grants? What’s the history of the program?

Xcel Energy has provided economic development grants since the 1990s. In an agreement with the South Dakota Public Utilities Commission, these dollars are provided  to encourage growth in the communities the company serves. Xcel Energy is more than just an energy provider, we are active participants in the community.

What are some examples of projects that have been done with these grants? 

Through the years, Xcel Energy has provided grants for things like ballpark and park upgrades, new welcome signs for communities, facade improvement programs, pool upgrades and pickleball courts.

What should communities keep in mind as they apply for this year’s local grants? What sort of outcomes and ideas are you looking for? 

The goal of the program is to assist with projects that have community support and attract people to potentially live, work and play in the area. Xcel Energy doesn’t want to be the sole funder for projects but rather part of a citywide effort.

How does the corporate economic development grant program work? What sort of response have you seen to that? 

This program is new, and the response has been very positive. Xcel Energy’s main goal is to assist in planning and developing industrial parks that are 20 acres or larger and in Xcel Energy’s service area. Examples of items that could be applied for with this grant are phase one environmental site assessments, topographical studies, wetland delineations, etc. The program requires a match from the state, county or city organization/authority making the application.

Corporate economic development grant examples include the Lincoln County wastewater feasibility study and the Salem Industrial Park site development plan work. 

How are grant applications evaluated? 

Xcel Energy’s corporate economic development team reviews all applications that meet the criteria for funding and follows up with questions before determining if the initiative is a good fit for an Xcel Energy grant.

On the local economic development grant front, South Dakota leadership reviews the applications and then provides feedback to the applicants. One of the big goals for this type of grant is to cycle it through our outlying — outside of Sioux Falls — communities so each one has an opportunity for funding. Xcel Energy wants to help all our communities grow and prosper.

The deadline to apply is Sept 1. When do recipients find out if they’ve been awarded, and do they have to use the funds in a certain period of time?

We set a deadline so that there is time before year-end to complete processing and payment. All applicants of either a local or corporate economic development grant will be communicated with to let them know if funding will be provided. Note that corporate economic development funds need to be used within 12 months of being received. While local grants don’t have a strict timeline, projects are closely monitored until completion.

If communities or businesses are interested in applying, what are their next steps?

Please contact community relations manager Eric Pauli at Xcel Energy should you have questions about the programs and/or would like to make an application. Sioux Metro Growth Alliance, a partner with Xcel Energy, is also aware of these grant programs and is another good resource to connect with as communities think about making applications.

To learn more about Xcel’s commitment to the region, listen in on the “Growing Places” podcast here.