New Tri-State wholesale rate design accepted by federal regulators 

• Member-developed formulary rate design ensures sufficient revenues to cover cost of service and meet financial goals as Tri-State continues to manage costs, ensure reliability, advance clean energy transition.

• After seven and one-half years of flat and lower wholesale rates for members, an approximate 6.3% average increase in member wholesale rate effective Aug. 1, 2024; wholesale rates increase is a net 1.4% increase from 2017 to 2024. 

(July 30, 2024 – Westminster, Colo.) A new wholesale rate design accepted today by federal regulators ensures not-for-profit wholesale power supply cooperative Tri-State Generation and Transmission Association has the certainty to collect revenues to cover its cost of service and meet all financial goals, while managing costs and maintaining competitive wholesale rates. 

The member-developed wholesale rate design was accepted, subject to refund, by the Federal Energy Regulatory Commission (FERC) and referred to the commission’s settlement and hearing procedures. The wholesale rate is effective Aug. 1, 2024. 

“Tri-State’s members worked together to develop and support our new wholesale rate,” said Duane Highley, Tri-State CEO. “Importantly, Tri-State can recover the costs necessary to reliably and affordably advance our clean energy transition, even as we manage costs and increase our competitiveness.” 

On Dec. 1, Tri-State filed a transformative electric resource plan that leverages potential federal funding, new direct pay clean energy tax credits, and the cooperative’s strong financial position to make its largest ever investment in new resources. Tri-State's preferred plan adds 1,250 megawatts of renewable resources and energy storage, adds dispatchable resources, significantly reduces greenhouse gas emissions, and preserves reliability and affordability. 

Following a seven and one-half-year period with stable and then 4% lower wholesale rates for its members, Tri-State's board of directors, representing its utility members, approved an approximate 6.3% increase in the average Class A wholesale rate. The budgeted 2024 wholesale rate reflects a net increase of 1.4% from the actual average Class A wholesale rate paid by members in 2017, which is approximately 0.2% annualized, significantly below the rate of inflation over the seven and one-half-year period. 

Uniquely, Tri-State’s Class A wholesale rate includes all of the costs, including energy, capacity (which ensures resource adequacy), transmission and ancillary services to deliver a reliable, affordable and increasingly clean supply of power into members’ electric distribution systems across the rural American West. Tri-State’s wholesale rate also includes a wide range of other value-added products and services. 

The new wholesale rate maintains Tri-State’s postage stamp rate, with the same rate components for all members. The new formulary rate can be adjusted annually based on the budget approved by Tri-State’s board, including an annual true-up mechanism. Wholesale rates are set to ensure the financial flexibility to meet member goals, with excess margins allocated as patronage capital and eventually returned to members.  

About Tri-State 

Tri-State is a power supply cooperative with utility electric distribution cooperative and public power district members in 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 rural West. For more information about Tri-State, visit www.tristate.coop.  

Contact: 

Lee Boughey, VP Communications, 720-670-6696, lee.boughey@tristategt.org 

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

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.