10/25/24

USDA New ERA award to finance $2.5 billion in Tri-State clean energy investments 

  • U.S. Department of Agriculture awards Tri-State funding through the Empowering Rural America (New ERA) Program to advance its industry-leading energy transition. 

  • USDA leadership and Members of Congress celebrate award at Tri-State’s headquarters. 

(October 25, 2024, Westminster, Colo.) Tri-State’s members and rural communities across Colorado, Nebraska, New Mexico and Wyoming will benefit from a reliable, affordable and responsible energy transition supported with $2.5 billion in low-cost financing and grants through the U.S. Department of Agriculture’s Empowering Rural America (New ERA) Program. 

In an announcement at Tri-State’s headquarters in Westminster, Colo., USDA Deputy Secretary Xochitl Torres Small was joined by U.S. Sen. Michael Bennet, U.S. Reps. Yadira Caraveo and Brittany Pettersen, USDA Rural Development Colorado State Director Crestina M. Martinez and other officials.  

“This is a momentous day for Tri-State, for our members, and for the future of rural electric cooperatives,” said Duane Highley, Tri-State’s Chief Executive Officer. “Most importantly, this is all about our rural communities, who are the beneficiaries, and how we can accomplish an accelerated energy transition that ensures reliability, in an affordable manner, that finally allows rural America to own and directly see the benefits.” 

“We are incredibly grateful to the USDA, our congressional delegations, our board of directors, members and employees, and the stakeholders who have championed the development of the New ERA Program and our application,” said Tim Rabon, Tri-State’s Chairman and Trustee of Otero County Electric Cooperative (Cloudcroft, N.M.). 

"At USDA Rural Development, we are deeply committed to supporting our rural partners and ensuring that communities across Colorado have access to the resources they need to thrive,” said Crestina M. Martinez, Colorado State Director for USDA Rural Development. “These historic investments in renewable energy are a testament to that commitment. By fostering clean energy solutions through the New ERA program, we are not only creating sustainable economic opportunities but also ensuring that our rural areas remain resilient and forward looking. Together with our local partners, we are building a stronger, greener future for generations to come." 

The projects supported by the New ERA award will help Tri-State’s members reach 70% clean energy used in 2030, and reduce greenhouse gas emissions by nearly 5.8 million tons annually. In Colorado, Tri-State’s greenhouse gas emissions are forecasted to be reduced 89% in 2030 from a 2005 baseline.  

Award strengthens Tri-State financials, supports competitive wholesale rates 

Tri-State’s New ERA award supports financing for: 

  • 1,280 megawatts of energy from solar, wind and wind/storage hybrid projects; 

  • More than 100 megawatts of stand-alone energy storage projects; and 

  • Retirement of 1,100 megawatts of coal-fired energy generation, which lessens the financial burden of stranded assets for Tri-State members.  

“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 below 2%, to support continued competitive wholesale rates for our members,” said Todd Telesz, Tri-State’s Chief Financial Officer. “With an industry-leading clean energy portfolio and vast transmission network owned by our members, we are well positioned to serve our members across the rural West well into the future.” 

With the New ERA award, wholesale electricity rates for cooperative members are expected to be reduced 10% by 2034, compared to business as usual, amassing $430 million in rural consumer benefits over ten years. From 2017 through 2025, Tri-State's wholesale rate to its members will only have increased 2.46%, which is 0.3% annualized and significantly below the rate of inflation over the nine-year period.   

Tri-State delivers community and farmer benefits, reliability and affordability for members 

As part of the New ERA Program, Tri-State will invest back into rural communities including where New ERA projects are located, delivering community support driven by local input. 

“Tri-State is committed to delivering on our community benefit plans, and we’re especially looking forward to engagement with farmers across our service territory in supporting farmer benefits,” said Highley. 

Many of the New ERA projects are incorporated into Tri-State’s 2023 Electric Resource Plan. Tri-State has issued requests for proposals for new resources for projects to be constructed between 2026 and 2031. Tri-State’s 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.   

“Our rural communities will benefit greatly from the cooperative investments in clean energy we will continue to make and with the New ERA Program funding we can make those investments in a more aggressive and economic way to provide the reliable, affordable and responsible energy that will lead our communities into a brighter future,” said David Spradlin, CEO of Springer Electric Cooperative (Springer, N.M.).  

“Together with Tri-State and with the support from USDA, our members will have an increasingly clean power supply that remains reliable and affordable, and that aligns with our cooperative board’s strategic plans and initiatives,” said Gary Kelly, CEO, Sangre de Cristo Electric Association (Buena Vista, Colo.).  

“Reliable power is the lifeblood of our rural communities. New ERA funding ensures Tri-State has the resources to keep the lights on with a higher standard for reliability, while investing in infrastructure needed to power the future,” said Molly Lynn, general manager of Garland Light and Power Co. (Powell, Wyo.). 

“Similar to the transformation rural communities experienced through the Rural Electrification Act of 1936, today we are re-electrifying rural America, and with USDA’s support, Tri-State can even better meet our needs for a reliable power supply with stable wholesale rates through the energy transition,” said Curtis Kayton, general manager of Chimney Rock Public Power District (Bayard, Neb.). 

Tri-State’s New ERA funding will support the following projects: 

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 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.