Tri-State issues request for proposals for new resources, focused on renewable energy, storage and hybrid technologies
- Tri-State to identify emissions-free generating resources for 2025; will consider highly competitive bids for 2026.
- Request for proposals marks the beginning of Phase II of Tri-State’s 2020 Electric Resource Plan.
- Modeling completed during Phase II of Tri-State’s electric resource plan will determine the total amount of resources to be procured.
(May 18, 2022 – Westminster, Colo.) – With a continued emphasis on adding clean energy resources that support greenhouse gas emissions reductions, not-for-profit wholesale power supply cooperative Tri-State Generation and Transmission Association today issued an all-source request for proposals (RFP) for new generation, as part of its 2020 Electric Resource Plan (ERP).
In its request for proposals, Tri-State is seeking renewable and carbon-free resources, which could include wind, solar, hydroelectric, geothermal or biomass energy, and storage resources including stand-alone battery systems, pumped-storage hydroelectric, compressed air energy storage systems or renewable resources co-located with thermal or battery storage.
“Our RFP advances an important component of Tri-State’s Responsible Energy Plan clean energy transition,” said Duane Highley, CEO for Tri-State. “Working with our members and stakeholders in the resource planning process, we are pursuing near-term generation resources that help us achieve our greenhouse gas emissions reduction targets, while maintaining flexibility as we evaluate the long-term needs our members.”
There are two phases in Tri-State’s ERP process with the Colorado Public Utilities Commission (CPUC). Tri-State’s Revised Preferred Plan modeled in Phase I, which was approved by the CPUC by operation of law on April 18 following a landmark settlement with approximately two dozen parties, identified 300 megawatts of new resources in 2025. Additional modeling to be completed in Phase II of Tri-State’s ERP will determine the total megawatt amounts to be procured under the RFP, which will lead Tri-State to an 80% greenhouse gas emission reduction in Colorado by 2030.
In this RFP, no natural gas resource bids will be advanced to modeling. Tri-State will consider power purchase agreement (PPA) terms between 15 years and 25 years, but given recent market conditions, it will also consider shorter PPA terms. While the RFP is focused on resources to be in place in 2025, Tri-State will also consider highly competitive bids for resources for 2026.
Tri-State intends to close the bidding process this summer, and subsequently will file its ERP Implementation Report within 150 days of the bids being received, reflecting a detailed analysis of 5-6 portfolios, including Tri-State’s preferred portfolio.
In its settlement agreement with two dozen parties, including its utility members, environmental organizations, state agencies and labor organizations, Tri-State has agreed to reduce greenhouse gas emissions related to its wholesale electricity sales in Colorado by 26% in 2025, 36% in 2026, 46% in 2027, and 80% in 2030. These amounts will be calculated based on Tri-State’s 2005 emissions baseline for wholesale sales in Colorado.
Tri-State is providing further details on its all-source request for proposal on its website. Tri-State’s member-driven Responsible Energy Plan clean energy transition targets 50% clean energy consumed systemwide by its members in 2024, and 70% clean energy consumed by its members systemwide by 2030.
Tri-State is a wholesale power supply cooperative, operating on a not-for-profit basis, with 45 members, including 42 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 West. For more information about Tri-State, visit www.tristate.coop.
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.