Tri-State returning $10 million in patronage capital to members for 2024  

• The return of members’ equity, which Tri-State has annually distributed for the past 42 years, is a hallmark of the cooperative business model and a benefit of Tri-State membership.  
• Tri-State has returned nearly $180 million in patronage capital to its members over the past decade. 
• Wholesale rates to members continue to be affordable, supported by USDA financing. 

(December 5, 2024 – Westminster, Colo.) The board of directors of not-for-profit wholesale power supply cooperative Tri-State Generation and Transmission Association has approved the return of $10 million in patronage capital refunds to its members for 2024. The Tri-State board approved the full refund of patronage capital budgeted for the year at its December 2024 meeting.  

Patronage capital represents each member’s ownership in Tri-State. It is the accumulation over the years of the net margins earned by Tri-State and then allocated to its members. Tri-State allocates 100% of all margins to members, strengthening their balance sheets, and has returned patronage for 42 straight years. Including 2024, Tri-State has returned nearly $180 million to its members across the rural West over the past decade.  

“The allocation and return of capital to our members is a hallmark value of Tri-State’s cooperative business model,” said Tri-State Chief Executive officer Duane Highley. 

Wholesale rates to members remain stable, competitive 

Tri-State maintains stable, competitive wholesale rates, with no increase in wholesale rates in 2025. From 2017 through 2025, Tri-State's wholesale rate to its members has only increased 2.46%, which is 0.3% annualized and significantly below the rate of inflation over the nine-year period.  

Tri-State's new formulary wholesale rate ensures Tri-State has the certainty to collect revenues to cover its cost of service and meet its financial goals, while maintaining the lowest margins possible. 

USDA financing supports affordable wholesale rates through energy transition 

Affordable wholesale rates are supported by the award of nearly $2.5 billion in low-cost financing and grants to Tri-State for its energy transition through the U.S. Department of Agriculture’s Empowering Rural America (New ERA) Program. With the award, wholesale electricity rates for Tri-State's members are expected to be 10% lower than they would otherwise be, compared to a business-as-usual approach, by 2034.    

“With USDA funding, Tri-State’s financial agility and strength will be bolstered with the most efficient and economic capital to be deployed in our industry, at a cost that will be well below 2%, to support continued competitive wholesale rates for our members,” said Todd Telesz, Tri-State’s Chief Financial Officer. “In addition, Tri-State maintains solid investment-grade credit ratings that support our investments for resiliency, including new generation and transmission.” 

In August 2024, S&P Ratings raised Tri-State's outlook and affirmed its investment-grade ratings. 

“Tri-State remains focused on our members’ priorities for reliable and affordable power as we advance our energy transition, and we are well positioned to serve our members across the rural West.” said Highley. “The future for our members and Tri-State continues to shine brightly.” 

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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. 

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.