Tri-State reviews 2024 financial performance
• Sales to remaining members and non-member increase.
• Debt reduced, balance sheet strengthened.
• All financial goals met, $10 million returned to members.
(March 19, 2025 — Westminster, Colo.) Not-for-profit wholesale power supply cooperative Tri-State Generation and Transmission Association reported its 2024 financial performance in the filing of its 2024 Form 10-K today with the Securities and Exchange Commission. Tri-State met all of its financial goals and returned $10 million in patronage capital to its members.
“Tri-State ended 2024 with increased sales to both our remaining members and non-members, lower debt, and a healthier and larger balance sheet,” said Tri-State Chief Executive Officer Duane Highley.
Chief Financial Officer Todd Telesz added, “Importantly, we improved our financial agility to serve the needs of our members, as we prepare for our largest ever investment in new generating resources, and transmission.”
Tri-State’s electric resource planning identifies the development of more than 1.5 gigawatts of new generation and energy storage projects through 2031, with additional investment planned in transmission infrastructure, to serve its 40 utility members across Colorado, western Nebraska, New Mexico and Wyoming.
Member and non-member energy sales increase
“Tri-State experienced significant growth in both member and non-member energy sales, helping mitigate the impact of a member’s withdrawal,” said Telesz. “The ability to sell excess power contributed significantly to the increase in non-member electric sales.”
Energy sales to Tri-State’s utility members grew 4.3% in 2024, excluding United Power, which withdrew from Tri-State membership on May 1, 2024. The impact of the withdrawal on total member electric sales (in both dollars and megawatt-hours) was lower than anticipated due to load growth from Tri-State’s other members, as well as increases in non-member electric sales.
“With a diversity of generation resources, Tri-State is in a favorable market position to benefit our members by forward selling excess capacity and energy, or purchasing market power, when it is economically advantageous,” said Telesz.
Debt reduced and balance sheet strengthened
Tri-State’s rate stabilization strategy leverages the recognition of deferred income from the withdrawal of former members to benefit its current members. United Power’s contract termination payment amount of $709.4 million included a cash payment to Tri-State of $627.2 million.
“Our rate stabilization strategy is a combination heavily focused on deleveraging, long-term rate stability and enhancing balance sheet integrity, which strengthens Tri-State’s financial position,” said Telesz. “We have been able to reduce debt, avoid borrowing and fund additional investments to serve our members.”
In 2024, Tri-State’s long-term debt decreased by $173.9 million. Short-term borrowings decreased $184.3 million to zero, mostly associated with the repayment of commercial paper.
To strengthen its balance sheet, Tri-State used deferred revenue to write off acquisition costs/goodwill of J.M. Shafer Generating Station and Colowyo Coal Company, accelerated expenses related to the transition from mining to full reclamation at the Colowyo Mine in 2025, and recognized expenses related to environmental remediation obligations at New Horizon and Colowyo mines.
“Addressing these legacy items on our balance sheet places Tri-State in a stronger position to better deliver on one of our key mission components of providing affordable power to our members,” said Telesz.
$200 million raised for solar construction
In April and May 2024, Tri-State closed on the acquisition of the 145-megawatt (MW) Axial Basin Solar and the 110-MW Dolores Canyon Solar projects now under construction in western Colorado. Both projects are expected to achieve commercial operation in the second half of 2025. In December 2024, Tri-State entered into a $200 million loan to support part of the construction cost of the two projects. Tri-State also expects to receive federal tax credits for both projects.
Formulary rate accepted by federal regulators
In 2024, the Federal Energy Regulatory Commission accepted Tri-State’s formulary rate, which maintains our postage stamp rate, with the same rate components for all utility members, adjusted annually based on the budgets approved by its Board, including an annual true-up mechanism. Tri-State has had stable rates since 2017 through 2025, with no increase in 2025, equating to a net wholesale rate increase of 2.46% over the nine-year period.
“Our formulary rate ensures timely cost recovery and allows Tri-State to meet our financial goals with the lowest possible margins for our members,” Telesz said.
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 Strategic Communications, 720-670-6696, lee.boughey@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.