Tri-State closes financing for construction of two solar projects
-
Tri-State among the first cooperatives in the nation to own large, utility-scale solar.
-
New direct-pay federal tax credits support cooperative ownership of renewables.
-
Tri-State members to reach milestone of 50% clean energy use in 2025, 70% in 2030.
(December 12, 2024 – Westminster, Colo.) Advancing the development of its first owned solar projects, Tri-State Generation and Transmission Association has closed and funded a new $200 million credit facility with Wells Fargo Bank, National Association that is instrumental in providing funds for the construction of the not-for-profit power supply cooperative’s Axial Basin and Dolores Canyon solar projects.
-
Axial Basin Solar is a 145-megawatt (MW) facility located in Moffat County, Colo., in the service territory of Tri-State member White River Electric Association.
-
Dolores Canyon Solar is a 110-MW facility located in Dolores County, Colo., in the service territory of Tri-State member Empire Electric Association.
The two western Colorado projects, acquired by Tri-State in 2024, are currently under construction and are expected to be complete in late 2025, when Tri-State forecasts to reach the significant milestone of 50% renewable energy use by its member systems. At that time, Tri-State will serve its members with 680 MW of solar across eight facilities, with solar power serving the equivalent needs of nearly 200,000 homes.
“Tri-State continues to build momentum for its energy transition with solid investment grade credit ratings enabling access to efficient and economic capital for our members,” said Todd Telesz, Tri-State's Chief Financial Officer. “With new direct pay federal renewable energy tax credits, Tri-State's cooperative members will benefit from ownership of their own renewable energy resources.”
Part of the financing comes from federal legislation signed into law in 2022 that makes not-for-profit electric cooperatives eligible to receive direct payment of federal renewable energy tax credits, empowering cooperatives to invest directly in the ownership of renewable resources. Previously, Tri-State and electric cooperatives in general could not directly benefit from the federal renewable energy tax incentives available to for-profit investor-owned utilities and independent power producers. For the two solar projects, Tri-State expects to be eligible to receive tax credits for up to 40% of eligible construction costs after project completion.
Even with the new credit facility, Tri-State has reduced its debt during 2024 by more than $200 million. In October 2024, the USDA announced $2.5 billion in low-cost financing for Tri-State for other renewable energy, energy storage and regulatory asset financing.
In the largest resource acquisition in its history, Tri-State will be adding approximately 1,500 megawatts of new generation and storage resources to its resource portfolio in the period 2026 through 2031, as part of Phase II of its 2023 Electric Resource Plan before the Colorado Public Utilities Commission. In 2030, Tri-State forecasts that 70% of the energy its members use will come from renewable resources.
###
About Tri-State
Tri-State is a power supply cooperative, operating on a not-for-profit basis, serving electric distribution cooperatives and public power district member-owners in four states. Together with our members, we deliver reliable, affordable and responsible power to more than a million electricity consumers across nearly 200,000 square miles of the West. Visit www.tristate.coop.
Contact:
Lee Boughey, VP Communications, 303-254-3555, 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.