For Immediate Release:

Thursday, Sept. 5, 2024

#TriHarder

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Rural Colorado power provider in line for “enormously beautiful” share of $9.7 billion in federal funding for clean energy expansion and decarbonization

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Tri-State eligible for $679 million from the Inflation Reduction Act’s New ERA program for new wind, solar, efficiency and grid modernization and to replace uneconomic coal plants

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WESTMINSTER – Nearly a year after Tri-State Generation and Transmission submitted its notice of intent to apply for $970 million in grants and low-interest loans through the Inflation Reduction Act’s New ERA (Empowering Rural America) program, President Biden on Thursday announced that it is indeed in line for a sizeable chunk of funding, as are two other Colorado power providers: United Power and CORE Electric.

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Biden is scheduled to speak in Wisconsin, where he will unveil the first recipient of $9.7 billion that is being distributed to rural electric cooperatives through the U.S. Dept. of Agriculture’s Rural Utilities Service (RUS). Tri-State is among 15 other large co-ops named as “finalists” for funding, and the agency has carved out $679 million in budget authority to support 18 clean energy and coal retirement projects it has proposed. The administration has yet to announce up to $4 billion more in New ERA funding earmarked for small- and medium-size co-ops. A number of Tri-State member co-ops, including San Miguel Power, La Plata Electric and Poudre Valley have applied for grants and loans from that appropriation.  

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Tri-State provides power to 41 co-ops in four states – including 16 in Colorado – that collectively serve more than 1 million homes and businesses. In July, CEO Duane Highly hinted in an interview that Tri-State’s share of New ERA funding would be an “enormously beautiful number that’s going to transform Tri-State’s balance sheet." Just a few days prior to that, Tri-State had signed a settlement agreement with more than a dozen parties in its resource planning proceeding before the Colorado Public Utilities Commission that enshrines what Tri-State is planning to do with the federal funding. The New ERA funding will assist Tri-State in: 

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

• Retiring the Craig coal plant at the end of 2027 instead of 2030.

• Closing its unit at the Springerville coal plant in Arizona in September 2031.

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RUS received over 150 proposals from almost every state to fund more than 800 clean energy projects. In total, proposals from rural electric cooperatives amounted to more than double the $9.7 billion available. In Colorado, letters of interest were submitted for 62 co-op projects totaling over $2 billion. Projects were graded mainly on the basis of their decarbonization plans, but selection criteria also included a project’s ability to lower rates for customers. According to Tri-State, the projects in its portfolio will reduce the revenue required from member rates by $422 million over 20 years. 

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Earlier this year, Tri-State also used direct pay tax credit provisions of the Inflation Reduction Act to purchase two utility-scale solar projects totaling 255 MW, one in Moffat County and one in Dolores County.

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United Power, which left the Tri-State system in May, also was selected to receive New ERA funding. The co-op, which was Tri-State’s largest member, will use its grants and loans to acquire 760 MW of renewable resources, including 460 MW of new solar power.

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Following are reactions to Thursday’s announcement from member-owners of Tri-State member cooperatives and United Power.

 

 

“The funding that the Inflation Reduction Act is injecting into rural communities through the New ERA program is a game-changer. For far too long, clean energy development has been just out of reach, but it’s now becoming a reality for rural Colorado communities like those served by Sangre de Cristo because of the doors that this support opens.”

– Sue Greiner, a resident of Buena Vista, which gets its power from Tri-State member Sangre de Cristo Electric Association

 

 

“This is such exciting news. Rural communities have been looking in from the outside as the country transitions to clean energy, and this funding opens the door for our communities to be able to reap the benefits of the move to renewable energy and leave the harm of fossil fuels in the rearview mirror.”

– Jeff Delaney, a resident of Crested Butte, which gets its power from Tri-State member Gunnison County Electric Association 

 

 

“This investment will be beneficial for farmers and ranchers and rural communities across the Rocky Mountain Farmers Union service area of Colorado, Wyoming and New Mexico. We’ve been waiting a long time for rural areas to have an opportunity to capitalize on clean energy development, and with Tri-State committed to spreading the projects it plans across its territory, farmers and ranchers and rural communities in three states stand to benefit. This investment will bring jobs, economic development and cleaner, affordable and reliable energy to our doors.”

– Chad Franke, President of Rocky Mountain Farmers Union, which represents 15,000 farm and ranch families in Colorado, Wyoming and New Mexico.

 

 

“This is yet another down-payment on transforming our community. The Dolores Canyon Solar Project that Tri-State purchased using IRA tax credits will be up and running next year. Combined with the windfall that the Inflation Reduction Act is providing to Tri-State through this round of funding, it’s going to inject some much needed energy – pun intended – into southwest Colorado communities.”

– Rebecca Busic, a resident of Dolores, which gets its power from Tri-State member Empire Electric Association

 

 

"It's encouraging to see this level of federal investment in our community's efforts to transition to clean energy. United Power's move to renewable energy is going to help improve air quality while creating new jobs in Colorado, so this funding is truly something to celebrate."

– Katherine Goff, City Council Member of Northglenn, which gets its electricity from United Power

 

 

“San Juan County is experiencing the impacts of climate change everyday. It's a relief to know this federal funding will give Tri-State the tools it needs to fully transition rural communities off of the coal and gas plants that are fueling the climate crisis. I’m glad to see it.”

– Scott Fetchenheier, San Juan County Commissioner and resident of Silverton, which gets its power from Tri-State member co-op San Miguel Power Association

 

 

"This is a big deal for Coloradans who get their electricity from rural electric coops on Tri-State's system. Our communities have supported Tri-State’s recent moves to catch up in the energy transition, and make sure we don’t get left behind and miss out on cleaner energy and lower bills for rural residents and businesses. This federal funding is a huge help with accelerating Tri-State’s energy transition plans."

– Jeff Fiedler, Lake County Commissioner and board member of Sangre de Cristo Electric Association 

 

 

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Tri-State’s announcement is available online here

USDA’s announcement is online here

Biden’s speech, at 2 p.m. MDT, will be streamed via: https://youtube.com/watch?v=zmWfq7y0hwU 

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