01-15-20 Tri-State announces transformative Responsible Energy Plan actions to advance cooperative clean energy

(January 15, 2020 – Westminster, Colo.) – In the most transformative change in its 67-year history, Tri-State Generation and Transmission Association today announced actions of its Responsible Energy Plan, which dramatically and rapidly advance the wholesale power supply cooperative’s clean energy portfolio and programs to serve its member electric cooperatives and public power districts.

“Our cooperative and its members are aligned in our transition to clean power,” said Rick Gordon, chairman of Tri-State and director at Mountain View Electric Association in eastern Colorado. “With today’s announcement, we’re poised to become a new Tri-State; a Tri-State that will provide reliable, affordable and responsible power to our members and communities for many years to come.”

Tri-State’s clean energy transition significantly expands renewable energy generation, meaningfully reduces greenhouse gas emissions, extends the benefits of a clean grid to cooperative members, and will share more flexibility for self-generation with members, all while ensuring reliable, affordable and responsible electricity.

“We’re not just changing direction, we’re emerging as the leader of the energy transition,” said Duane Highley, Tri-State’s chief executive officer. “Membership in Tri-State will provide the best option for cooperatives seeking a clean, flexible and competitively-priced power supply, while still receiving the benefits of being a part of a financially strong, not-for-profit, full-service cooperative.”

Accelerated additions of renewable projects drive 50% renewable energy by 2024

Tri-State today announced six new renewable energy projects in Colorado and New Mexico, which along with two projects previously announced and yet to be constructed, will result in more than 1 gigawatt of additional emissions-free renewable resources being added to Tri-State’s power supply portfolio by 2024.

For the first time, four solar projects will be located on the west side of Tri-State’s system, including near Escalante Station and Colowyo Mine, which are scheduled to close by the end of 2020 and by 2030, respectively.

The eight long-term renewable energy projects of varying contract lengths to be added to Tri-State’s resource portfolio by 2024 include:

  *  Escalante Solar, a 200-megawatt (MW) project located in Continental Divide Electric Cooperative’s service territory in New Mexico. Tri-State has a contract with Turning Point Energy for the project. The solar project is on land near Escalante Station, which will close by the end of 2020.

  *  Axial Basin Solar, a 145-MW project in northwest Colorado in White River Electric Association’s service territory. Tri-State has a contract with juwi for the project. The project is located on land near the Colowyo Mine, which will close by 2030.

  *  Niyol Wind, a 200-MW project located in eastern Colorado in Highline Electric Association’s service territory. Tri-State has a contract with NextEra Energy Resources for the project.

  *  Spanish Peaks Solar, a 100-MW project, and Spanish Peaks II Solar, a 40-MW project, located in southern Colorado in San Isabel Electric Association’s service territory. Tri-State has contracts with juwi for both solar projects.

  *  Coyote Gulch Solar, a 120-MW project located in southwest Colorado in La Plata Electric Association’s service territory. Tri-State has a contract with juwi for the project.

  *  Dolores Canyon Solar, a 110-MW project located in southwest Colorado in Empire Electric Association’s service territory. Tri-State has a contract with juwi for the project.

  *  Crossing Trails Wind, a 104-MW project located in eastern Colorado in K.C. Electric Association’s service territory. Tri-State has a contract with EDP Renewables for the project.

The construction and operation of these projects will result in hundreds of temporary construction jobs and contribute to permanent jobs and tax base within Tri-State members’ service territories.

“By 2024, 50% of the energy consumed within our cooperative family will be renewable,” said Highley. “Accelerating our renewable procurements as technology improved and prices dropped results in the lowest possible renewable energy cost today for our members, and likely of any regional utility.”

Since 2009, Tri-State has contracted for 15 utility-scale wind and solar projects, as well as numerous small hydropower projects. By 2024, Tri-State will have more than 2,000 megawatts of renewable capacity on its 3,000-megawatt peak system, including:

  *  800 megawatts of solar power from 9 projects (3 existing, 6 to be constructed by 2024)

  *  671 megawatts of wind power from 6 projects (4 existing, 2 to be constructed by 2022)

  *  600 megawatts of large and small hydropower (Including federal and numerous small projects)

Collectively, Tri-State’s renewable portfolio can power the equivalent of nearly 850,000 average homes.

Greenhouse gas emissions significantly reduced to meet Colorado, New Mexico goals

Tri-State is significantly decreasing greenhouse gas emissions to meet state laws and goals, and with the closures<https://tristate.coop/tri-state-announces-retirement-all-coal-generation-colorado-and-new-mexico> of all coal facilities it operates, will eliminate 100% of its greenhouse gas emissions from coal in New Mexico by the end of 2020 and in Colorado by 2030.  The early closures of Escalante Station, Craig Station and Colowyo Mine were announced last Thursday, following the early retirement of Nucla Station in 2019.

By closing Craig Station, Tri-State is committed to reducing carbon emissions from units it owns or operates in Colorado by 90% by 2030, and reducing emissions from Colorado electric sales by 70% by 2030.

Tri-State also is committing to not develop additional coal facilities, and has cancelled its Holcomb coal project in southwestern Kansas. The air permit for the project will expire in March 2020.

“With the retirements of all coal facilities we operate, a commitment to not pursue coal in the future, and a significant increase in renewables, Tri-State is making a long-term and meaningful commitment to permanently reduce our greenhouse gas emissions,” said Highley.

Plan extends benefits of a clean grid and electric vehicles to rural areas

As Tri-State rapidly transitions to a clean grid, it is working with its members to extend the benefits of low-emissions electricity to replace higher-emission transportation, commercial and residential energy uses.

“By extending the benefits of a cleaner power supply to vehicles, homes, farms and businesses, we ensure that rural energy consumers save money while further reducing greenhouse gas emissions,” said Highley.

To expand rural electric vehicle charging networks, Tri-State will fund electric vehicle charging stations for each member, and will work with members to further promote electric vehicle usage. Tri-State will promote and increase its beneficial electrification, energy efficiency and demand-side management programs with its members, including support through the new Beneficial Electrification League of Colorado<https://www.tristate.coop/tri-state-national-partners-advance-low-carbon-energy-use-across-colorado-0> and other state chapters, and will study potential emissions reductions associated with beneficial electrification.

Increasing member flexibility for developing local renewable energy resources

As a cooperative, Tri-State’s members are working together to increase local renewable energy development and member self-supply of power. In November 2019, Tri-State expanded opportunities for member community solar projects up to 63 megawatts system-wide, and is finalizing recommendations for partial requirements contracts.

“Our membership has moved quickly over the past six months to advance recommendations for flexible partial requirements contracts, which will be considered by our board by April 2020 and which Tri-State will implement upon the board’s approval,” said Gordon.

Partial requirements contracts provide flexible options for members that desire to self-supply power, while ensuring other members are not financially harmed. A Contract Committee of the Tri-State membership is currently reviewing partial requirements contract options.

Center for the New Energy Economy advisory process informs plan

To develop the Responsible Energy Plan, Tri-State collaborated with a diverse advisory group, facilitated by Colorado State University’s Center for the New Energy Economy (CNEE) and former Colorado Governor Bill Ritter. This group included representatives from the states Tri-State serves including academic, agricultural, cooperative, environmental, rural and state government interests.

“These advisors rolled up their sleeves to work with us on the details that make our energy transition vision a reality,” said Highley. “We are grateful to Governor Ritter and the CNEE advisory group for their good-faith contributions and efforts to find common ground in the pursuit of ambitious but actionable commitments, and challenging but attainable goals.”

Tri-State maintains financial strength and stable rates through transition

Tri-State’s strong financial position and cooperative business model helps ensure wholesale rates remain stable, if not lower, during its transition.

“We are favorably positioned to successfully transition to clean resources at the lowest possible cost,” said Highley. “The low costs of renewable energy and operating cost reductions help to counterbalance the cost to retire coal generation early, keeping our wholesale rates stable with even cleaner electricity.”