U.S. DOE orders Tri-State to keep Craig Generating Station unit operating for next 90 days
(December 31, 2025 – Westminster, Colorado) Tri-State Generation and Transmission Association and the other utilities that co-own Craig Generating Station Unit 1 received an emergency order from the U.S. Department of Energy (DOE) under Section 202(c) of the Federal Power Act identifying an energy emergency in the Western Electricity Coordinating Council Northwest area and directing Tri-State to keep Unit 1 available to operate at the direction of either the Western Area Power Administration (WAPA)—Rocky Mountain Region Western Area Colorado Missouri (WACM) in its role as Balancing Authority or the Southwest Power Pool (SPP) West in its role as the Reliability Coordinator, for the next 90 days.
Since 2016, Unit 1 has been scheduled for retirement by Dec. 31, 2025, for economic reasons, and to comply with numerous state and federal requirements. This retirement decision has informed operational and maintenance decisions, and Tri-State has planned for adequate resources to maintain reliability on its system following the unit’s retirement.
Separately, Unit 1 went into an outage on Dec. 19, 2025, due to a mechanical failure of a valve, and Tri-State and the other co-owners will need to take the necessary steps to repair the valve in a timely manner.
“Tri-State has a policy of 100% compliance, and we will work with Unit 1 co-owners, and federal and state governments to determine the most cost-effective path to that end,” said Duane Highley, Tri-State CEO. “We are continuing to review the order to determine what this means for Craig Station employees and operations, and the financial impacts. As a not-for-profit cooperative, our membership will bear the costs of compliance with this order unless we can identify a method to share costs with those in the region. There is not a clear path for doing so, but we will continue to evaluate our options."
As a result of the order, retaining Unit 1 will likely require additional investments in operations, repairs, maintenance and, potentially, fuel supply, all factors increasing costs. Tri-State is continuing to review the order to determine how best to comply while limiting the costs to its members, and the impacts to its employees and operations.
The retirement of Craig Unit 1 was specified in Colorado Air Quality Control Commission Regulation No. 23 on Regional Haze Limits, and the Regional Haze State Implementation Plan put in place in 2016. Tri-State’s 2020 and 2023 Electric Resource Plan (ERP) modeling reflected the previously announced retirement date for Unit 1. The model results of the 2023 ERP showed adequate resources to maintain reliability on Tri-State’s system following the retirement of Craig Station.
Craig Units 1 and 2 are part of the Yampa Project, jointly owned with multiple utility services providers including Tri-State, Platte River Power Authority, PacifiCorp, Xcel Energy and Salt River Project, with Tri-State as the operating entity. Tri-State owns 100% of Unit 3. Craig Unit 1’s capacity is 427 megawatts. Unit 2, with a capacity of 410 megawatts, and Unit 3, with a capacity of 448 megawatts, are scheduled to retire in 2028.
Tri-State will share more information as appropriate when available.
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 rural West. Visit www.tristate.coop.
Contact
Amy Robertson, 303-254-3743, amy.robertson@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.