Momentum of energy transition highlights Tri-State’s 72nd Annual Meeting 

• Cooperative’s strength, energy transition ensures reliable and affordable power for members. 

• Tri-State meets or exceeds financial goals, returns $10.4 million in patronage capital to members. 

• Board of Directors reelects Chairman, officers to Executive Committee.  

(April 4, 2024 – Westminster, Colo.) The benefits to Western rural communities from the progress Tri-State has made on its energy transition were highlighted at Tri-State’s 72nd Annual Meeting of its membership, on April 2-3, in Westminster, Colo.  

With a theme of Momentum, the two-day meeting had a record-setting attendance of nearly 500. Attendees heard from cooperative leaders, staff and guests on how Tri-State’s members are working together to advance initiatives to preserve reliable and affordable power, while transforming the not-for-profit power supplier to best serve its membership well into the future.  

“The strength of our cooperative business model is in the way we come together to achieve more than any one of us could do alone,” said Tri-State Chairman Tim Rabon, who also serves as a trustee of Otero County Electric Cooperative in Cloudcroft, N.M. “2023 marked a year of great progress and change, and we’re picking up even more momentum in the years ahead.” 

Cooperative’s strength, energy transition ensures reliable and affordable power for members  

Chief Executive Officer Duane Highley discussed how Tri-State members’ collective diversity and scale create a generation and transmission system with unrivaled strength and stability, enabling a rapid energy transition while protecting members as a hedge from volatile shocks in markets and regulation. 

“We’re bringing our transition plan to reality by taking consistent steps to make measurable progress,” said Highley. “Since 2019, we’ve made more progress than I could have imagined, gaining speed and reinforcing our commitment to our members provide a reliable, affordable and responsible supply of electricity.” 

With the addition of 595 megawatts (MW) of new solar resources in 2024 and 2025, 50% of the energy Tri-State’s members use will come from renewable energy in 2025. Three new solar projects will be online in 2024, and two new solar projects, the first that Tri-State will directly own, will be online in late 2025. 

In 2023, Tri-State filed a new Electric Resource Plan (ERP), leveraging opportunities to accelerate emissions reductions and clean energy additions with support from the U.S. Department of Agriculture’s (USDA) New ERA Program, which leadership from Tri-State helped advance into law in 2022.  

Tri-State’s ERP preferred plan includes metrics to demonstrate reliability in extreme weather events and has lower costs than a “business as usual” approach. In 2030, the preferred plan reduces greenhouse gas emissions 89% in Colorado and 55% systemwide, from a 2005 baseline, with 70% of the energy Tri-State members use coming from renewable resources. 

Many other 2023 accomplishments and milestones for Tri-State and its members were discussed by Highley, including: 

• Organized markets – 100% of Tri-State loads and resources are in either a Regional Transmission Organization (RTO) or an Energy Imbalance Market, with the benefit of lower costs, higher reliability and more efficient dispatch of resources. Tri-State committed with other regional utilities to participate in the 2026 western expansion of the Southwest Power Pool RTO. 

• Distributed Energy Resources – Tri-State secured $26.8 million from the U.S. Department of Energy for development of a Distributed Energy Resource Management (DERMs) platform, helping members save money by optimizing the operations with Tri-State’s system. 

• On-Bill Repayment Program – Tri-State is receiving a $75 million zero-interest loan from USDA Rural Energy Savings Program (RESP) for an on-bill repayment program to reduce the cost to consumers for energy efficiency and electrification. 

• Energy Efficiency – Tri-State invested $4.71 million in energy efficiency programs and expanded beneficial electrification efforts through support of funding and rebate programs involving electric vehicle infrastructure, commercial lighting, heat pumps, energy efficient motors and electric appliances, providing more than 10,000 electrification and efficiency rebates. 

• Member flexibility – With Tri-State’s members, a new program is under development to support the local development of renewable resources. For members that wish to terminate their contracts with Tri-State early, FERC ordered a Contract Termination Payment for exiting members that is designed to promote rate neutrality for the remaining Tri-State members, with a two-year period prior to a member’s departure that permits Tri-State to adjust its resource and other planning to maximize opportunities and avoid costs that would otherwise arise if the member was not exiting the membership.  

Tri-State meets or exceeds financial goals, remains competitive and has returned $10.4 million in patronage capital to members 

Tri-State’s wholesale rates to its members remain competitive, with stable or lower rates since 2017. At the annual meeting, a review of 2022 U.S. Energy Information Administration data demonstrated that Tri-State members’ average residential retail rates were lower than former Tri-State members and competitive with regional investor-owned utilities that serve more densely populated urban areas.  

“In 2023, Tri-State met or exceeded its financial goals, returned $10.4 million of patronage capital to members, with $10.1 million of net margins allocated to members,” said Treasurer Stuart Morgan, who also serves as director of the Wheat Belt Public Power District in Sidney, Neb. “We are optimistic about the advancements we’ve made with our members and our energy transition, and Tri-State’s creditworthiness continues to be demonstrated by its investment grade ratings.”  

A proposed formulary wholesale rate to filed with Federal Energy Regulatory Commission (FERC) in the coming months will include a wholesale rate increase, the first in more than seven years, and looking forward, Tri-State forecasts that wholesale rates will remain competitive and align with the forecasted rate of inflation.  

Executive Committee of the Board of Directors unanimously reelected 

In a strong sign of confidence in Tri-State’s member-led, democratic governance, the executive committee of Tri-State's Board of Directors was unanimously reelected. 

Tim Rabon, who has served on Tri-State’s board since 2014, was re-elected as chair. Don Keairns, representing San Isabel Electric Association (Pueblo West, Colo.) on the board since 2012, was re-elected vice chair. Julie Kilty, who has represented Wyrulec Company (Torrington, Wyo.) on the Tri-State board since 2012, was re-elected secretary. Stuart Morgan, who has represented Wheat Belt Public Power District on the Tri-State board since 2007, was re-elected treasurer. 

Thaine Michie, representing Poudre Valley Rural Electric Association (Fort Collins, Colo.) and Scott Wolfe, representing San Luis Valley REC (Monte Vista, Colo.) were each reelected as assistant secretary. Michie and Wolfe have served on Tri-State’s board since 2009 and 2008, respectively. 

The Executive Committee's three at-large positions were seated with incumbents Charlie Abel, representing Sangre de Cristo Electric Cooperative (Buena Vista, Colo.), Wayne Connell representing Central New Mexico Electric Cooperative (Mountainair, N.M.) and Shawn Turner, representing The Midwest Electric Cooperative (Grant, Neb.). 

About Tri-State 

Tri-State is a power supply cooperative, operating on a not-for-profit basis, with a diverse membership across four states that together deliver reliable, affordable and responsible power to more than a million electricity consumers across nearly 200,000 square miles of the West. For more information about Tri-State, visit www.tristate.coop and view Tri-State’s 2023 Annual Report. 

Contact: 

Lee Boughey, 303-254-3555, lee.boughey@tristategt.org 

Mark Stutz, 303-254-3183, mark.stutz@tristategt.org 

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Certain information contained in this press statement are forward-looking statements including statements concerning Tri-State’s plans, future events, and other information that is not historical information. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those described from time to time in Tri-State’s filings with the Securities and Exchange Commission. Tri-State’s expectations and beliefs are expressed in good faith, and Tri-State believes there is a reasonable basis for them. However, Tri-State cannot assure you that management’s expectations and beliefs will be achieved. There are a number of risks, uncertainties and other important factors that could cause actual results to differ materially from the forward-looking statements contained herein.