Recent commentary, including a column (Herald, Apr. 16) from the executive director of the San Juan Citizens Alliance, misrepresents Tri-State. As Tri-State’s Chief Executive Officer, I’d like to set the record straight on how we deliver reliable, affordable, flexible and cleaner power for our 40 member utilities and the communities they serve.
Tri-State is a not-for-profit cooperative, owned and governed by 40 member cooperatives. Our members hold long-term power supply contracts, which allows Tri-State to secure long-term generation and transmission resources.
Our board of directors, representing each utility member, recently accepted our membership’s recommendations to increase the flexibility in our members’ power contracts, with a voluntary option for members to extend their contracts to 2066. While members do not have to extend, many will see the benefits of securing the most reliable and affordable power supply portfolio for the long run.
Reliability is our members’ top priority for Tri-State, and we are transparent on how we plan to deliver reliable power, even under extreme weather conditions, for decades to come. Our diverse mix of resources, with more on the way, ensures that our members have the power they need, when they need it.
Affordability is supported by long-term planning with additional stable-cost resources that assure our members are protected from the market volatility that can wreak havoc on electricity rates. Our members share dozens of generation resources, with even more competitively bid resources planned for the coming years. These resources are an important hedge that protects consumers when market prices are high.
Tri-State’s proposed resource plan includes expanding our generation portfolio with a balanced, diverse supply sourced from even more wind and solar, our first battery storage facilities and a new natural-gas, hydrogen blend-capable power plant. In 2030, we forecast that we will provide more than 70% clean energy to all our members, while reducing our greenhouse gas emissions in Colorado by at least 80%, as compared to 2005. Our members value this future and gain the economies of scale that are only possible by working together.
Our newly approved contract provides greater flexibility for members to self-supply power, regardless of whether a member chooses to extend the term of their contract with Tri-State. This includes moving forward to increase member distributed and renewable resource self-supply opportunities to 20% of their requirements from the previous 5% provision. For even more flexibility, a member can take advantage of our innovative Bring Your Own Resource program to serve up to an additional 40% of their needs, and can even partner with other members to do so.
Tri-State members have greater flexibility to design their own supply portfolios, with the security knowing their power supplier has the backup power to keep the lights on during all seasons, can cover unexpected load growth opportunities, and has the transmission crews and equipment that supports reliability for the member.
In our cooperative model, every one of our board members represents their local utility and cares deeply about reliability and affordability. We don’t answer to shareholders – we answer to the communities we serve. Our members review our costs monthly and approve our annual budget, with every member having a seat at the table. Members hold the staff of Tri-State accountable and we face additional oversight by regulators. Excess revenues are allocated back to member systems. Last year Tri-State returned $10 million in surplus revenues back to its member systems. You won’t find that when buying power from for-profit entities.
Everything we do is transparent and with information available to the public. Our resource plans are filed with the Colorado Public Utilities Commission, our rates and contracts are filed with the Federal Energy Regulatory Commission, and our financials are filed with the Securities and Exchange Commission.
There is a difference in power suppliers, and I’m proud of the work our board, staff and members have accomplished together, and even more excited about what lies ahead. Our members can choose to stay with the reliability, affordability, and access to ever-cleaner energy that can be achieved when cooperative utilities band together under a not-for-profit business model to collectively manage the risks of today’s power marketplace.
Duane Highley has served electric co-ops for nearly 40 years and was named CEO of cooperative power supplier Tri-State Generation and Transmission Association in 2019.
