Tri-State announces return of capital to its membership for 2019
- Tri-State announces allocation of $45 million in patronage capital and return of $30 million to members, with $100 million returned to members over the last four years.
- Wholesale rates for members are unchanged in 2020, marking the fourth straight year with stable wholesale rates, with rates forecasted to be stable, if not lower, over the next decade.
(May 14, 2020 – Westminster, Colo.) – Demonstrating the value of the cooperative business model and its strong financial position, not-for-profit power supply cooperative Tri-State Generation and Transmission Association announced it has completed payment of approximately $30 million in patronage capital refunds to its members for 2019, and allocated an additional $45 million patronage capital to its members.
In the cooperative business model, patronage capital is each member's share of the net margins earned by the cooperative and allocated to its members. Allocated patronage capital is refunded to cooperative members over time.
Tri-State returned $30 million in patronage capital to its members for 2019, and has returned $100 million over the past four years.
"The allocation and return of capital is one of the significant benefits of cooperative membership and a hallmark of the cooperative business model," said Rick Gordon, chairman of the Tri-State board and director of the Mountain View Electric Association in Limon, Colo. "The allocation and payment of patronage capital contributes to each members' financial health by strengthening their balance sheets and providing an inflow of cash."
Tri-State has allocated patronage capital to its members from it's net margins each year, and has returned patronage for 37 straight year.
"The return of patronage capital provides our member distribution systems with the opportunity to return capital directly to their consumer-members, or address other needs that will allow them to continue to provide reliable, affordable and responsible energy services," Gordon said.
Tri-State's wholesale rates have not increased in the past four years, and are forecasted to remain stable or decrease over the next decade. Through 2050, Tri-State forecasts rate changes to be below the rate of inflation.
Tri-State is a not-for-profit cooperative of 46 members, including 43 member utility electric distribution cooperatives and public power districts 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 West. For more information about Tri-State and our Responsible Energy Plan, visit www.tristate.coop.
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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.