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Guzman Energy proposal would finance retirement of Tri-State coal plants, add 1.2 gigawatts of new wind and solar power

5/28/2019

By Joe Smyth | [email protected] | @joesmyth

Guzman Energy is proposing a deal that would help Tri-State Generation and Transmission Association meet Colorado and New Mexico's new clean energy policies, by replacing nearly half of Tri-State's remaining coal fleet with 1.2 gigawatts of new wind and solar power projects, along with a mix of energy storage and natural gas. Guzman Energy executives said that the proposal would also immediately lower costs for Tri-State, and could allow member co-ops to increase the amount of local renewable energy they can build.

“Rapidly changing economics, combined with new carbon reduction goals in states that include the majority of Tri-State’s members, mean there’s a lot at stake for those who own and are served by Tri-State," said Guzman Energy President Chris Riley in a press release. "We’ve put a proposal on the table that would help Tri-State and its members lower costs right now while simultaneously reaching compliance with new laws. We look forward to taking the proposal directly to Tri-State’s owners and facilitating an open and transparent dialogue.”

In an interview, Riley explained that the company had presented the deal to Tri-State executives, as well as to several Tri-State member co-ops. Riley said that while some member co-ops expressed support for the proposal, Tri-State executives indicated they did not plan to continue exploring the proposal until after rulemakings and implementation of the new climate legislation in Colorado and expanded renewable energy standard in New Mexico. That will likely take several months, and could increase costs as federal tax credits for wind and solar projects begin to expire. Guzman Energy executives hope instead that its proposal will be reviewed in parallel with the rulemakings, and decided to publicly announce the proposal so that it can be considered by Tri-State member co-ops and their members.

Colorado Public Utilities Commission will oversee Tri-State resource planning

5/7/2019

By Joe Smyth | [email protected] | @joesmyth

The Colorado Public Utilities Commission will now require Tri-State Generation and Transmission Association to submit its resource plan for Commission approval, a major shift that followed growing calls from Colorado communities and co-op members for more regulatory oversight of Tri-State, negotiations between new Tri-State CEO Duane Highley and the Colorado Energy Office, and an amendment to a bill that was passed on the final day of the Colorado legislature's 2019 session. Along with a separate climate bill that also passed the Colorado legislature last week, the changes mean that Tri-State will now be required to develop a plan to significantly reduce the carbon pollution of its coal-heavy energy mix.

The deal also came after the Colorado Public Utilities Commission (PUC) made clear early last week that it would begin using its existing authority to more closely regulate Tri-State's resource planning process, with or without new legislation.

By the end of last week, the Colorado legislature included an amendment to a bill reauthorizing the PUC (SB19-236), which states: "The Commission shall promulgate rules that require each wholesale electric cooperative to submit to the Commission an application for approval of an integrated or electric resource plan."

In a press release, new Tri-State CEO Duane Highley signaled support for the amendment:

"We appreciate the active engagement and understanding of Governor Polis and Colorado Energy Office Executive Director Toor, as well as the work of the legislative leadership, to ensure regulatory requirements support our vision and recognize the uniqueness of Tri-State’s cooperative model, the nature of our wholesale business and the values of our democratic self-governance."

In the same press release, Colorado Energy Office executive director Will Toor said:

“We appreciate the collaboration exhibited by Tri-State's leadership and new CEO Duane Highley on Senate Bill 236, and we look forward to continued engagement to advance the state's clean energy goals and ensure low long-term costs for their members."

Colorado communities and state Energy Office urge Public Utilities Commission oversight of Tri-State

5/1/2019

By Joe Smyth | [email protected] | @joesmyth

The Colorado Energy Office and some municipalities are urging the Colorado Public Utilities Commission to oversee Tri-State Generation and Transmission Association's resource planning, as it does with investor-owned utilities in the state.

The Colorado Public Utilities Commission (PUC) is considering revisions to a wide array of its rulemaking processes, and hosted hearings this week and a public comment session today. Several organizations and individuals also submitted written comments to the PUC for the rulemaking review (docket 19R-0096E).

The Colorado Energy office submitted written comments to the PUC today, which argues that "reducing carbon emission in Colorado requires reducing emissions from all the state's public utilities and stronger Commission oversight of Tri-State is a key to meeting carbon reduction goals."

Guzman Energy proposal would finance retirement of Tri-State coal plants, add 1.2 gigawatts of new wind and solar power

Colorado Public Utilities Commission will oversee Tri-State resource planning

Colorado communities and state Energy Office urge Public Utilities Commission oversight of Tri-State

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