09/5/24

Rural communities to benefit as Tri-State selected in USDA’s New ERA Program 

  • Reliability and affordability prioritized as Tri-State advances 18 projects that significantly reduce greenhouse gas emissions. 

  • $9.7 billion program to assist transitioning electric cooperatives was conceived and developed with Tri-State’s leadership. 

  • Procurement of resources in 2023 Electric Resource Plan set to begin in mid-September. 

(September 5, 2024, Westminster, Colo. and Westby, Wis.) As part of the most significant federal investment in rural electric cooperatives since 1936, Tri-State Generation and Transmission Association has been selected in the U.S. Department of Agriculture’s Empowering Rural America (New ERA) Program, which is designed to help rural cooperatives implement reliable and affordable clean energy transitions. Tri-State led engagement on the development of the program concept and its inclusion in the Inflation Reduction Act, and will leverage the program to benefit its members and rural communities across four states. 

"This is a big deal and transformational opportunity for Tri-State and other electric cooperatives across the country. We are incredibly grateful to the Tri-State Board of Directors, our members, staff and stakeholders who have championed the New ERA Program and our application," said Tri-State Chief Executive Officer Duane Highley. “With strong support, we are positioned to advance an industry-leading, reliable clean energy transition, while lowering costs to our members and rural consumers at the end of the line, and together investing in the communities we serve." 

Tri-State’s New ERA application proposes to: 

  • Build or purchase 1,480 megawatts (MW) of solar, wind, and battery storage in Colorado, Nebraska, New Mexico and Wyoming. 

  • Support the retirement 1,100 MW of coal-fired generation in Arizona, Colorado and New Mexico, without negatively impacting reliability. 

Through this portfolio, Tri-State would: 

  • Reduce the revenue required from members through rates by $422 million over 20 years. 

  • Eliminate nearly 5.8 million tons of greenhouse gas emissions annually. 

  • Work across our members’ service territories and with project communities to identify and deliver additional community benefits, including for farmers and ranchers. 

Tri-State was invited to apply for up to $679 million in program budget authority, and USDA selected the application. Through a mix of low-interest loans and grants, Tri-State would look to leverage this budget authority to support investments that could total more than $2 billion for 18 projects. 

Tri-State has made it past the competitive stage of the New ERA Program and will now take the final steps, including underwriting, toward securing a New ERA award for its 18 projects. Many of these projects are incorporated into the not-for-profit power supplier’s 2023 Electric Resource Plan (ERP) proceeding at the Colorado Public Utilities Commission. With final commission approval of its ERP Phase I Settlement, Tri-State would issue requests for proposals for new resources for 2026-2031 later this month. 

Tri-State’s 2023 ERP reflects both industry standard reliability metrics and Tri-State's heightened “Level II” reliability metrics, which assess electric system resilience in extreme summer and winter weather conditions.  

“Tri-State’s resource portfolio helps ensure long-term electric system reliability, even in extreme weather, for rural communities across the West,” Highley said. 

Tri-State recognized by Colorado Governor, members for benefitting rural communities 

As a generation and transmission cooperative, a New ERA award will deliver benefits to rural communities across the West that are served by Tri-State's member electric cooperatives and public power districts. 

“Colorado is leading the nation in clean energy action and I’m proud to see Tri-State receive this funding to expand their clean energy portfolio and help save Coloradans money on electricity. This funding will help Colorado achieve our bold climate goals, improve air quality, save people money, and support rural Colorado communities,” said Governor Jared Polis. 

“We are excited that Tri-State has been selected as a finalist for New ERA funding,” said Poudre Valley Rural Electric Association (Fort Collins, Colo.) President and CEO Jeff Wadsworth. “This recognition not only highlights a significant opportunity for Tri-State but also benefits the members of Poudre Valley REA. It reaffirms our collective dedication to fostering an equitable energy transition for Rural America.” 

"A New ERA award for Tri-State is really an award for all of Tri-State’s members and those we serve at the ‘end of the line’,” said Otero County Electric Cooperative (Cloudcroft, N.M.) Chief Executive Officer Mario Romero. “With strong planning and support through USDA, we can ensure that even as we add renewables and reduce emissions, our rural communities can remain confident that their power will remain reliable and affordable.” 

Tri-State and Congressional leadership supports cooperative energy transition  

Over more than three years, Tri-State led efforts with key stakeholders and its Congressional delegation on policies to support cooperatives in their energy transitions, developing the concept, building a strong policy argument and negotiating language that ultimately shaped the cooperative provisions in the Inflation Reduction Act and the details of the USDA’s New ERA Program. Tri-State also helped secure direct-pay clean energy tax credits for cooperatives in the legislation. 

"Tri-State is proud to have played a pivotal role in turning this vision into reality," said Tri-State Senior Manager, Energy Policy and Federal Affairs Evan Jurkovich. "Our collaboration with stakeholders, advocacy on Capitol Hill and work with USDA, were instrumental in ensuring that rural electric cooperatives received the unique support they need in the energy transition." 

Tri-State received strong support from its Congressional Delegation, including in Colorado and New Mexico, to advance ideas into legislation. 

“Any successful policy needs champions and leaders on Capitol Hill to become successful. Senator Bennet, Senator Lujan and other members of the Colorado and New Mexico Congressional delegation have been instrumental in supporting electric cooperatives and the New ERA Program, and Tri-State is grateful for their partnership,” Highley said. 

Projects in Tri-State’s New ERA application 

Arizona 

  • Springerville Station Unit 3 retirement, Apache County 

Colorado 

  • Spanish Peaks Solar/Spanish Peaks II Solar power purchase agreements (PPA), Las Animas County

  • Craig Station Unit 2 and Unit 3 retirements, Moffat County

  • Solar PPA, Western Colorado

  • 4-hr Lithium-Ion battery owned by Tri-State, Eastern Colorado

  • Two wind PPAs, Eastern Colorado 

New Mexico 

  • Escalante Station retirement, McKinley County

  • Escalante Solar PPA, McKinley County

  • 4-hr Lithium-Ion battery owned by Tri-State

  • Solar project PPA

  • Two wind/storage hybrid project PPAs 

Wyoming/Eastern Nebraska 

  • Three wind PPAs 

About the New ERA Program 

The New ERA Program is a $9.7 billion initiative by the USDA designed to help rural cooperatives implement reliable and affordable clean energy transitions. Learn more at the USDA New ERA website. 

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, Vice President, Communications, (720) 670-6696, Lee.Boughey@tristategt.org

Mark Stutz, (303) 254-3183, Mark.Stutz@tristategt.org 

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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.