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By Joe Smyth | [email protected] | @joesmyth Tri-State Generation and Transmission Association has a new response for electric cooperatives that might be considering a different wholesale power provider: an advertising campaign that tells co-ops they are "better together" with Tri-State. But despite the message in the ads, Tri-State appears to have developed the ad campaign on its own, and is even placing the "better together" ads in the service territories of its members co-ops without explicit permission from the co-ops.
Tri-State launched its new ad campaign as one of its member co-ops is seeking to exit its contract with Tri-State in order to pursue more local renewable energy projects and lower rates, while other Tri-State member co-ops are also considering other power suppliers. Last month, the Colorado Public Utilities Commission ruled that it would determine the amount Delta-Montrose Electric must pay to leave Tri-State. The discussion at one co-op's monthly board meeting suggests that Tri-State developed and placed the "better together" ads without the input of its member co-ops. At the Mountain Parks Electric monthly board meeting on February 14, Communications Manager Rob Taylor gave an update to the board of directors about Tri-State 's advertising campaign, so that the co-op could "discuss whether or not we want to use it." "Tri-State has started a new advertising campaign, and the theme is called “Better Together” and we have to discuss to decide if it’s the messaging we want. Currently our local messaging on our commercials are energy efficiency themed. But they have some radio ads that I wanted to share with you just so you could hear what their new message is. And again we have not started using this, but we have to discuss whether or not we want to use it." But after the Mountain Parks Electric board of directors listened to the Tri-State radio ad that ended with the message "Tri-State and Mountain Parks Electric. Brighter, stronger, better together," one board director said that he had heard the same ad on the radio that morning.
By Joe Smyth | [email protected] | @joesmyth
One of Colorado's largest electric cooperatives is concerned that it could face higher rates in the future from Tri-State Generation and Transmission Association, because the wholesale power provider isn't paying down over a billion dollars of its debt, even as costs increase for its aging coal plants.
In a letter to Tri-State CEO Mike McInnes, La Plata Electric Association CEO Mike Dreyspring raised concerns that Tri-State's debt could lead to increased future rates for the co-op and its members. In particular, the letter notes La Plata Electric's concerns about a portion of Tri-State's debt "for which Tri-State is receiving through rates principal and interest repayment, but is not applying the principal to reduce that debt."
Delta-Montrose Electric highlights "broad statewide support" from state legislators, industry trade associations, Colorado towns and cities, and advocacy organizations
By Joe Smyth | [email protected] | @joesmyth
The Colorado Public Utilities Commission (PUC) ruled on Thursday that it has jurisdiction to determine how much Delta-Montrose Electric should pay to end its contract with Tri-State Generation and Transmission Association. The PUC ruling is a boost to the electric cooperative's years-long efforts to pursue more local renewable energy projects and try to stabilize electric rates for its members.
Delta-Montrose Electric CEO Jasen Bronec said in a press release: “This is a significant ruling and confirms that no wholesale electricity supplier—not even Tri-State—is above the law. Tri-State talks about its ‘core principle’ of ‘voluntary and open membership’ in public. But its legal filings say that the Tri-State board can stop members from exiting by setting abusive charges with zero oversight." In a press release, Tri-State Board President Rick Gordon made clear that Tri-State would continue to push for the case to be heard in court, instead of at the PUC: “The commission’s assertion of jurisdiction is unnecessary and unwarranted, but is not unexpected. A private contract dispute, even between utilities, does not belong at the commission. This matter appropriately belongs in the courts.”
Electric cooperatives have shifted their approach to renewable energy amid declining prices and growing public support, but wholesale power providers are key
By Joe Smyth | [email protected] | @joesmyth
Three electric cooperatives in Colorado have now set clean energy goals, reflecting co-ops' growing recognition of the opportunities presented by declining prices for renewable energy and increased public support for wind and solar power development.
The latest announcement came last week from Grand Valley Power, an electric cooperative that delivers electricity to more than 18,000 members mostly in Mesa County, Colorado. Grand Valley Power established a target of 60% clean energy by 2030, which the co-op described as "one of the most aggressive environmental targets of any electric cooperative in the nation." In a press release, Grand Valley Power noted that the "announcement comes at a time when home- and business-owners are increasingly interested in having renewable energy and reducing carbon emissions." Grand Valley Power CEO Tom Walch said: “With cost-effective advances in clean renewable energy technology, we’ll be able to meet this 60 percent target by 2030 while maintaining rate stability and our excellent reliability standards. This is one of the best ways we can deliver value to our consumers.” 
Grand Valley Power 2018 Energy Mix, and 2030 Estimated Energy Mix, from Grand Valley Power fact sheet
Colorado ski resorts support Delta-Montrose Electric exit from Tri-State
By Joe Smyth | [email protected] | @joesmyth
The ski industry is increasingly focusing its sustainability efforts on decarbonizing the electric grid, by engaging with their power suppliers, regulators, and state policymakers. In the latest move, a group of Colorado ski resorts are supporting Delta-Montrose Electric Association's efforts to end its contract with Tri-State Generation and Transmission Association and pursue more renewable energy.
In a letter to the Colorado Public Utilities Commission (PUC) last week, Colorado Ski Country USA President Melanie Mills wrote that the group "supports the efforts of Delta-Montrose Electric Association (DMEA) to withdraw from membership in Tri-State Generation and Transmission Association, Inc. (Tri-State) in order to develop more local renewable resources and stabilize its retail rates." The letter also notes that of Colorado Ski Country USA's 23 member ski resorts, 16 buy electricity from rural electric cooperatives. Most of those co-ops buy wholesale power Tri-State, and so face limits on their abilities to pursue local renewable energy projects. That poses challenges for some ski resorts' sustainability efforts. Ski resorts also notice higher electricity costs, as the letter explains: "As businesses and large consumers of energy, keeping energy sources affordable is critical for Colorado's ski areas to operate cost-effectively in the future."
By Joe Smyth | [email protected] | @joesmyth
The Colorado Public Utilities Commission today rejected Tri-State Generation and Transmission Association’s efforts to exclude the Colorado Energy Office from participating in the case between Tri-State and Delta-Montrose Electric Association. Delta-Montrose Electric has asked the Public Utilities (PUC) determine the amount it must pay to exit from Tri-State, while Tri-State has argued that the PUC does not have jurisdiction in the case.
The Colorado Energy Office sought to intervene in the case earlier this month, noting that it can “intervene as a matter of right” under Colorado law. But the agency also acknowledged that its request came after a 30 day deadline, because the agency’s new executive director Will Toor took office on January 14. In response, Tri-State argued that the Colorado Energy Office should not be allowed to intervene in the case, in part by claiming that the state agency's "concerns regarding DMEA's rates and facilities" are outside of the PUC’s jurisdiction. Tri-State claims that co-ops "have intervened on Tri-State's behalf at the PUC” don’t add up1/24/2019
By Joe Smyth | [email protected] | @joesmyth
Last week, a majority of Colorado state legislators urged the Colorado Public Utilities Commission (PUC) to determine the amount that Delta-Montrose Electric Association must pay to exit from Tri-State Generation and Transmission Association.
In response to the legislators’ letter, Tri-State has sought to highlight the support from its member co-ops for its argument that the Colorado PUC does not have jurisdiction in the dispute. The Denver Post reported: Tri-State spokesman Lee Boughey said in an email Friday that 34 of its member cooperatives have filed statements supporting the position that the state utilities commission doesn’t have jurisdiction in the contract dispute. The Grand Junction Daily Sentinel reported: Tri-State spokesman Lee Boughey said that 34 of Tri-State's members, or 80 percent, have made filings with the PUC in support of its position that the DMEA issue is not up to the PUC to decide. "Legislators should be aware that the vast majority of our members disagree with DMEA, and in fact have intervened on Tri-State's behalf at the PUC. We would encourage legislators to reach out to the co-ops in their districts for feedback when they're asked about these kinds of matters," Boughey said. But an analysis of the filings submitted by co-ops to the Colorado PUC shows that Tri-State’s claims are false. And requests for comment from the general managers of ten co-ops in Colorado returned only two responses - both disputing that they “have intervened on Tri-State behalf.” Colorado state legislators urge Public Utilities Commission to determine Tri-State exit charge1/20/2019
By Joe Smyth | [email protected] | @joesmyth
A majority of Colorado’s state legislators are urging the Colorado Public Utilities (PUC) to determine the amount that Delta-Montrose Electric Association must pay to exit from Tri-State Generation and Transmission Association.
In a letter this week to Colorado PUC Chairman Jeff Ackermann and Commissioner Frances Koncilja, 17 Colorado State Senators and 35 State Representatives wrote: We submit these comments in support of the filing last month by Delta-Montrose Electric Association (DMEA) asking the Colorado Public Utilities Commission to set a just, reasonable, and nondiscriminatory charge for DMEA’s exit from Tri-State. As members of the Colorado General Assembly who care about rural economic development and allowing all Coloradans access to less expensive power from local and diverse generation sources, we urge the Commission to strongly consider exercising its jurisdiction under Colorado law and setting an exit charge fair to both DMEA and Tri-State’s remaining members. More corporate customers want renewable energy options. What happens when an electric utility can’t offer that? By Joe Smyth | [email protected] | @joesmyth United Power has been meeting with other electric cooperatives this month, in an effort to build support for its proposal to change the bylaws of its power supplier, Tri-State Generation and Transmission Association. Those meetings follow United Power’s invitations to discuss its “grave concerns about key elements of Tri-State’s key generation products and services” directly with the 42 other co-ops that buy power from Tri-State.
At a presentation to Mountain Parks Electric on January 3, United Power New Business Director Jerry Marizza explained that United Power was not proposing to simply raise the 5% limit that Tri-State imposes on local renewable energy development to a higher level. Instead, the proposal for a partial requirements contract option would assure that Tri-State continues to provide a portion of United Power’s energy purchases, while allowing United Power to meet its electricity load growth by pursuing its own local renewable energy projects, or buying wholesale power from other providers. United Power staff said the proposal would also give the co-op the ability to provide its major customers with lower rates and renewable energy options that aren’t possible with the current Tri-State contract. One example Marizza noted were commercial customers that now expect to be able to build larger on-site solar arrays to help power their operations: “All this stuff is happening at the distribution level. Ikea - they will not build a facility unless they get to put a megawatt of solar on their roof. That’s just a fact, okay? If you want an Ikea, you’re going to have to deal with that fact. And you can’t come to them and say ‘I’d love to accommodate you, but Tri-State’s contract won’t allow me to.’ That’s not an answer, it really isn’t.” The Ikea store in Centennial, Colorado has a 1.1 megawatt rooftop solar array. Next Colorado PUC Commissioner John Gavan "consensus choice" of Governors Hickenlooper and Polis12/20/2018
By Joe Smyth | [email protected] | @joesmyth Colorado Governor John Hickenlooper announced this week that John Gavan will serve as the next Commissioner of the Colorado Public Utilities Commission (PUC), beginning January 7, 2019. Gavan will replace PUC commissioner Wendy Moser, whose term ends next month, and join Commissioner Frances Koncilja and Chairman Jeffrey Ackerman, whose terms continue until January 2020 and January 2021, respectively. "We appreciate Wendy’s service to the PUC," said Hickenlooper press secretary Jacque Montgomery in an email, "Mr. Gavan was a consensus choice of both the Governor and Governor-elect Polis. He is an engineer and brings experience in energy and telecommunications. We believe Mr. Gavan will be an excellent addition to the PUC." The Colorado PUC regulates electric utilities in the state, and will likely play a significant role in efforts to shift the state toward renewable energy. Governor-elect Jared Polis campaigned on a goal of moving Colorado to 100% renewable energy by 2040 or sooner, and said after the election that goal will be among his top priorities. The Polis campaign website highlighted the importance of “Appointing Public Utilities Commissioners who support consumers and renewable energy” among the ways that "We can spur investment in new local renewable energy projects."  Image from Jared Polis campaign website during the election
By Joe Smyth | [email protected] | @joesmyth
United Power will dedicate the largest battery storage system in Colorado next week, a 16 megawatt hour Tesla Powerpack in Longmont that the electric cooperative expects will save its members $1 million each year.
But recent policy changes by Tri-State Generation and Transmission Association, United Power’s wholesale power supplier, aim to discourage other cooperatives from pursuing similar projects, creating uncertainty for the deployment of battery projects in much of rural Colorado and New Mexico. United Power shifted its focus to battery projects last year, after the co-op reached the 5% limit on local renewable energy generation imposed by Tri State. Over the past several years, United Power sought to reduce its purchased power costs by building several solar arrays in its service territory that deliver power at a lower cost than power sold by Tri-State. Blocked from pursuing more local solar projects, United Power developed a strategy to use batteries to help control its peak demand. Last month, United Power also wrote to other co-ops expressing "grave concerns" about Tri-State, including the high cost of power it sells to member co-ops and "Tri-State’s reluctance to embrace additional sources of renewable energy generation due to constraints of its largely fossil fuel generating fleet." Controlling peak demand will help the co-op manage its purchased power costs - which could slow the growth revenue that Tri-State receives from United Power. So this past summer, Tri-State changed its Policy 115, which describes how the 5% limit will be implemented. Tri-State inserted language into the policy to include “energy storage devices, such as batteries,” even though the policy was designed to deal with co-ops’ renewable or distributed generation projects. A June 2018 copy of the proposed changes to Tri-State Policy 115 shows the edits to the policy in red, before those changes were finalized. 
By Joe Smyth | [email protected] | @joesmyth
Delta-Montrose Electric Association (DMEA) took a major step forward in its effort to end its contract with Tri-State Generation and Transmission Association, by filing a formal complaint last week requesting that the Colorado Public Utilities Commission (PUC) "exercise its jurisdiction over Tri-State as a public utility" and "establish an exit charge that is just, reasonable, and nondiscriminatory."
On Monday morning, the Colorado PUC ordered Tri-State "to satisfy the matters in the complaint or to answer the complaint in writing within 20 days." On Monday afternoon, DMEA filed a request that the PUC establish a schedule for the hearings process that would result in a decision by July 11, 2019.
DMEA has sought for years to loosen the restrictions that Tri-State imposes on electric cooperatives, which prevent DMEA and other Colorado co-ops from pursuing more local renewable energy projects. In October, DMEA members voted to give the electric cooperative more financial options to pursue a buyout of its Tri-State contract.
DMEA noted in a press release that it "will partner with Guzman Energy," the same power supplier that supported Kit Carson Electric's $37 million buyout of its contract with Tri-State. Guzman Energy announced today that it is seeking Requests for Proposal for up to 200 megawatts of wind energy and 50 megawatts of solar energy, and has obtained a $200 million capital commitment to help bring on that new renewable energy. Guzman Energy President Chris Riley confirmed that a portion of the 250 megawatts of wind and solar would be used to serve DMEA, if the co-op succeeds in ending its contract with Tri-State.
By Joe Smyth | [email protected] | @joesmyth
United Power, the largest electric cooperative that buys power from Tri-State Generation and Transmission Association, is seeking changes to Tri-State's bylaws that would give more flexibility to United and other co-ops to purchase power from other providers.
In letters sent last week to the other electric cooperatives that buy power from Tri-State, United Power board president James Vigesaa wrote that "the Board members and management of United Power have grave concerns about key elements of Tri-State’s key generation products and services," including Tri-State's reluctance to embrace renewable energy and the high cost of power it sells to member co-ops. A United Power representative said that letters were sent to the board presidents and general managers of each of the 42 other Tri-State member co-ops. Other electric cooperatives in Colorado and New Mexico have noted similar concerns about the high cost and heavy reliance on coal of the power they purchase from Tri-State, and have responded in a variety of ways. In September, Poudre Valley Electric Association urged Tri-State to study if adjusting its fuel mix could lower costs, as reports from Rocky Mountain Institute and Moody's Investors Service have found. Delta-Montrose Electric Association is pursuing an end to its contract with Tri-State, as Kit Carson Electric did in 2016. La Plata Electric Association is studying its options, and last month contracted with three consulting firms to analyze its contract with Tri-State and other power supply options. United Power's letter suggests another approach: instead of only allowing all-requirements contracts, which require each co-op to purchase 95% of its power needs from Tri-State, United Power's proposal would "amend the Tri-State bylaws to include a partial requirements membership relationship." By Joe Smyth | [email protected] | @joesmyth At the Clean Energy Means Business Summit in Denver this week, representatives of municipalities and companies in Colorado discussed how they are pursuing their renewable energy goals, including navigating the challenges and opportunities of working with electric cooperatives in Colorado. The event, organized by the Colorado Solar Energy Industries Association and the Compact of Colorado Communities, also included presentations from solar energy developers, electric utilities, and state officials.
Craig Edwards, Director of Corporate Services at Aurora Organic Dairy, discussed how the company considers a variety of options for on-site renewable energy projects at its operations in Colorado and Texas, and said, “We’re just wrapping up a couple solar installations at two of our dairy farms here in Colorado, they’re our first steps towards our clean energy strategy.” Edwards said that the Aurora had sometimes faced challenges in working with electric cooperatives as it pursues on-site renewable energy projects, but had found success by discussing the company’s goals with co-op staff. Aurora is still negotiating with other electric cooperatives about future projects: We’re still working through many different negotiations with many of our co-ops. Each one of our locations we operate in has a unique mix of renewable energy sources and possibilities, we have a co-op for each one generally, so we look at everything on a case by case basis. Governor-elect Jared Polis says moving Colorado toward more renewable energy will be a top priority11/8/2018
New report shows that renewable energy prices continue to decline, undercutting the costs of existing coal plants
By Joe Smyth | [email protected] | @joesmyth
Colorado voters elected Jared Polis to be the state’s next governor on Tuesday, joining several other states that also elected governors who campaigned on clean energy. Polis campaigned on a platform that included bringing Colorado to 100% renewable energy by 2040, and in an interview with the Denver Post yesterday, said that renewable energy would be among his top priorities:
Is there anything in particular you plan on prioritizing? Certainly, saving families money on health care, expanding access to preschool and kindergarten, and taking the steps to move toward more renewable energy will be among our top priorities both through executive actions as well as working with the state legislature. In a debate last month, Polis emphasized that moving toward renewable energy could benefit ratepayers, because of the declining prices for new renewable energy:
By Joe Smyth | [email protected] | @joesmyth
At the 2018 Colorado Rural Electric Association Energy Innovations Summit this week in Denver, electric utility industry officials discussed changes in energy technologies and utility business models, such as increasing customer choices and declining costs of distributed renewable energy. But while there was broad agreement about the opportunities provided by cheaper renewable energy, there were disagreements about the scope and pace of business model changes underway in the industry - and the implications of those changes for the hundreds of electric cooperative directors and staff attending the conference.
Steve Collier, Director of Smart Grid Strategies at Milsoft Utility Solutions, delivered a presentation titled “Revolutionary Change in the Electric Industry: Threats and Opportunities,” which focused on the implications for electric cooperatives of what he described as an “eroding monopoly.” Collier explained: What choices do customers have other than buying from you, all that that they have ever bought? Do they have choices? Yeah they have choices. Primarily distributed energy resources. But we’re not just talking about rooftop solar, we’re talking about a whole variety of options that they have to reduce the amount of electricity that they buy from you.
By Joe Smyth | [email protected] | @joesmyth
Delta-Montrose Electric Association members voted to approve changes to the electric cooperative's articles of incorporation this week, creating new financing options that will help the co-op end its contract with its power supplier, Tri-State Generation and Transmission Association. Under the new articles of incorporation, Delta-Montrose Electric Association (DMEA) will be able raise money by issuing capital stock, “which could be used to fund DMEA’s potential Tri-State buyout,” according to a press release.
“We believe addressing our power supply costs is essential for long-term rate stabilization for our members. This was the primary driver behind our recommendation to amend and restate the Articles of Incorporation,” said Delta-Montrose Electric CEO Jasen Bronec in a statement. The DMEA board urged members to vote yes, including with a video that focused on how the changes would help DMEA finance a buyout of its contract with Tri-State. The co-op also hosted community meetings about the proposed changes. DMEA members voted by mail and at a special meeting on October 16, with 2,677 members voting yes (68%), and 1,248 voting no (32%).
By Joe Smyth | [email protected] | @joesmyth
The Poudre Valley Rural Electric Association board of directors is urging Tri-State Generation and Transmission Association to develop new policies to respond to a changing utility industry, and to study if adjusting its fuel mix could lower costs. In a resolution passed unanimously on September 19, the electric cooperative requested that Tri-State “work expeditiously in a transparent process to determine if significant cost savings are achievable by adjusting Tri-State’s fuel mix and provide the findings to Tri-State’s members by the end of calendar year 2018.”
Poudre Valley Rural Electric Association (PVREA) provides electricity to nearly 40,000 members in Larimer, Weld, and Boulder Counties, and this June was recognized as “Electric Cooperative Utility of the Year” by the Smart Electric Power Association for a community solar project that helped expand solar power opportunities for low and moderate income members. PVREA is also Tri-State’s second largest member cooperative by electricity sales, and the resolution emphasizes PVREA’s partnership with Tri-State, noting that it helped form Tri-State and “has a vested interest in Tri-State to be successful." By Joe Smyth | [email protected] | @joesmyth Holy Cross Energy announced last week that it plans to shift its power supplies away from coal and increase its use of renewable energy to 70% by 2030, without any increase in the costs of it power supply. The Glenwood Springs based electric cooperative says the plan would lead to a 70% reduction in greenhouse gas emissions, compared to 2014 levels. Holy Cross Energy CEO Bryan Hannegan highlighted why the co-op could shift to renewable energy without increasing costs: “Thanks to advances in technology and changes in energy markets, we have the opportunity to bring on new renewable energy resources at costs comparable to our existing supply. This will enable us to meet our clean energy goals while maintaining the reliable, affordable and safe service our members have come to expect.” Other electric utilities in the state have also begun to increase their use of renewable energy, taking advantage of the fact that new wind and solar power in Colorado is now cheaper than existing coal plants, and responding to growing demands for cleaner energy from large electricity consumers including municipal governments and some major companies. But Holy Cross Energy is the first electric cooperative in Colorado to establish an ambitious renewable energy target. Let’s look at how Holy Cross Energy plan to achieve its goals.  Screenshot from Holy Cross Energy "seventy70thirty" website More major companies expect 100% renewable energy options, and some are pushing for broader changes in power markets By Joe Smyth | [email protected] | @joesmyth At the Global Climate Action Summit last week, twenty-one major technology companies announced the Step Up Declaration, which aims to boost the impact of corporate sustainability efforts by leveraging the companies’ various avenues of influence. The declaration notes: We look beyond our four walls to activate supply chains, influence political and regulatory mechanisms, push each other as peers, partners and competitors and enable and inspire our customers. The companies supporting the Step Up Declaration play a growing role in the economy, and claim to represent over $750 billion in combined market capitalization: Akamai Technologies, Arm, Autodesk, Bloomberg, BT, Cisco Systems, Ericsson, HP, Hewlett Packard Enterprise, Lyft, Nokia, Salesforce, Supermicro, Symantec, Tech Mahindra, Uber, Vigilent, VMware, WeWork, Workday, and Zoox. The largest technology companies have also made clear their preferences for renewable energy, and those are now the largest companies in the world: The five largest publicly-traded companies in the world — Apple, Amazon, Google’s Alphabet, Microsoft and Facebook — all have corporate commitments to use 100 percent renewable energy and at least three of them have already hit those ambitious targets. The technology sector remains the largest purchaser of renewable energy, but major companies in other sectors have also made 100% renewable energy commitments, including Coca-Cola, Nike, Anheuser-Busch, General Motors, and Walmart - a total of 144 companies so far. And the impacts of those corporate renewable energy commitments are growing quickly, according to a Bloomberg New Energy Finance report last month, which found that “corporations have already purchased 7.2GW of clean energy globally in 2018 through July, shattering the previous record of 5.4GW for the whole of 2017.”  Colorado Energy Plan approval will mean new renewable energy investments in rural Colorado8/28/2018
By Joe Smyth | [email protected] | @joesmyth
The Colorado Public Utilities Commission approved Xcel Energy’s Colorado Energy Plan yesterday, greenlighting the plan to close two units at the Comanche coal plant in Pueblo Colorado, and replace that power with a mix of new renewable energy and battery storage projects along with existing natural gas plants.
Xcel Energy’s plan attracted national attention this year due to the proposals for large scale battery storage projects and unprecedented bids for cheap new wind and solar energy. In Colorado, the plan attracted support from labor, business, environmental, and community organizations, thanks to its expected economic and health benefits. A report this week from the Colorado Fiscal Institute found that closing the two coal units would reduce air pollutants in Pueblo and Colorado, leading to fewer asthma attacks, emergency rooms visits, and other health problems. A June report from the Leeds School of Business at the University of Colorado Boulder found that the plan would create hundreds of new jobs, boost local tax revenue, and provide a net positive economic impact to the state - mostly by avoiding nearly $1 billion in coal purchases from Wyoming. 
By Joe Smyth | [email protected] | @joesmyth A new report from the Rocky Mountain Institute (RMI) finds that Tri-State Generation and Transmission Association could save its member co-ops over $600 million through 2030, by taking advantage of low cost renewable energy resources and shifting away from its reliance on coal fired power plants. Moreover, the report shows that if Tri-State fails to cut costs and continues to rely on its higher cost coal plants, the generation and transmission association will face increased risks, including losing electricity sales because of defection by its member co-ops, as well as by those co-ops’ members. The RMI report compares the costs of each of Tri-State’s coal fired power plants – broken down by the costs of fuel, fixed operations and maintenance costs, and variable operations and maintenance costs – to the range of bid prices for new wind and solar energy in Colorado that Xcel Energy received this year in response to it Colorado Energy Plan proposal. Even after adding costs for expanding transmission and other integration costs to bring those new renewable energy resources online, it costs more to keep running Tri-State’s coal plants than it would to add new renewable energy.  Figure 2 from Rocky Mountain Institute report: A Low-Cost Energy Future for Western Cooperatives
By Joe Smyth | [email protected] | @joesmyth
The Delta Montrose Electric Association (DMEA) board of directors is urging members to support a proposal that would change the electric cooperative’s articles of incorporation, to support DMEA’s efforts to end its contract with Tri-State Generation and Transmission Association.
DMEA posted a video and background information on its website to explain the proposed changes, and the reasons the board of directors is recommending that members vote yes this October to support the proposal. According to DMEA: The revisions do three general things. First, they modernize and streamline language (which in some cases been in place since 1938). Second, they allow DMEA to take advantage of being governed by a newer Colorado cooperative law (called the Colorado Cooperative Act). Third, they give DMEA more financial flexibility by allowing it to issue capital stock to non-members. Those new financing options could be a first for electric cooperatives. DMEA says, “While we are not aware of any electric cooperatives that have issued capital stock to non-members, many other types of co-ops have,” including major agricultural cooperatives like Sunkist, Oceanspray, and Land O Lakes. DMEA will host a series of town halls next month about the proposed changes, and members will receive ballots the last week of September. DMEA members can cast their vote by mail, or in person at an October 16 meeting.
By Joe Smyth | [email protected] | @joesmyth
Wind energy projects are increasing jobs, tax revenue, and lease payments to landowners in the Eastern Plains of Colorado - and in the process, attracting support from leaders of both major parties in the state.
State legislators and other officials joined Xcel Energy and wind turbine manufacturer Vestas this week to highlight the economic benefits of wind energy in eastern Colorado, with a tour of the 600 megawatt Rush Creek wind energy project. The wind energy project in Cheyenne, Elbert, Kit Carson and Lincoln counties is currently under construction, and is expected to come online in October 2018. “Wind is a huge win-win for rural Colorado,” said Shawn Martini, Vice President of Advocacy for the Colorado Farm Bureau. “Rush Creek is just one project and we’re poised to see even bigger investments should Xcel Energy’s Colorado Energy Plan be approved by the Colorado Public Utilities Commission, which, for the growth and health of our communities, we hope they do.” Xcel Energy’s Colorado Energy Plan would mean a major expansion of renewable energy in the state, including additional major wind energy projects in eastern Colorado. According to an analysis from the Leeds School of Business at the University of Colorado Boulder that was filed last week last with the Colorado Public Utilities Commission (PUC), the Colorado Energy Plan would result in net economic benefits in Colorado, including a net increase of 549 jobs.
By Joe Smyth | [email protected] | @joesmyth
Two reports this month provide new details about Xcel Energy’s Colorado Energy Plan, including a glimpse at even lower bid prices for new renewable energy projects in the state, and an analysis of the impacts of the plan to jobs and tax revenue in Colorado and Pueblo County.
Xcel Energy's proposal would close two of the three units at the Comanche coal plant in Pueblo, Colorado, and replace that power with a mix of new resources including 1100 megawatts of wind energy, 700 megawatts of solar energy, 275 megawatts of energy storage projects, and the purchase of 380 megawatts of existing natural gas capacity. The Colorado Public Utilities Commission (PUC) is considering the proposal, and several labor, environmental, business, and community groups in Colorado are engaged in that process. In January, we saw the bid prices for new renewable energy projects that Xcel Energy received, which showed that new wind and solar power in Colorado is now cheaper than existing coal plants. Those renewable energy project bid prices were so low, they attracted interest from a wide array of energy industry analysts and publications. But that earlier report only showed median prices of the bids that Xcel had received: $18/MWh for new wind energy, $30/MWh for new solar projects, and $36/MWh for solar with battery storage projects. This month, Xcel Energy filed a more in-depth report with the Colorado PUC, which provides additional details about the renewable energy project bids it received. And while the new report doesn't include pricing details for specific projects, it does show the price range of bids that came in below those median prices: The Preferred CEPP includes unprecedented low pricing across a range of generation technologies including wind at levelized pricing between $11-18/MWh, solar between $23-$27/MWh, solar with storage between $30-$32/MWh and gas between $1.50 - $2.50/kW-mo. The lower end of those ranges rival some of the record-breaking low solar energy prices we've seen in recent months around the sunny Southwest. |
Recent ArticlesProject Tundra coal carbon project faces delays, higher costs, and departing contractor
Lignite Energy Council shouldn’t be funded by utility ratepayers, Minnesota Attorney General argues Major co-op supports Biden coal debt relief proposal that NRECA has sought to undermine Basin Electric faces growing pressure on coal from co-ops, insurers, and banks Tri-State: Moving a cooperative power provider from coal to clean energy Tri-State will replace coal plants with a gigawatt of new wind and solar United Power and La Plata Electric ask Colorado Public Utilities Commission to determine Tri-State exit fee Colorado Rural Electric Association spent electric cooperatives’ money supporting Republican politicians Colorado Public Utilities Commissioner questions "whether or not Tri-State has been candid with us" Rural America could power a renewable economy - but first we need to solve coal debt Tri-State explores FERC rate regulation to limit state oversight Poudre Valley Electric sets "80 by 2030" carbon free goal 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 Reports examine the impacts of Tri-State's high wholesale power costs Tri-State executive involved with anti-Clean Air Act group since 2005 US Congressional Committee requests details of Tri-State funding to anti-Clean Air Act group Renewable energy projects stalled in 2018 among Tri-State member co-ops Second co-op asks Tri-State to pull “Better Together” ads Tri-State won’t allow co-op members to attend annual meeting Tri-State expects member co-ops to support bylaw changes at annual meeting Rocky Mountain Farmers Union calls on Tri-State to adopt flexible contracts and more clean energy Co-ops in Colorado push for change at Tri-State Will Municipal Energy Agency of Nebraska remain reliant on coal? Tri-State ad campaign tells co-ops they’re “better together” La Plata Electric concerned Tri-State debt will lead to higher rates Colorado Public Utilities Commission asserts jurisdiction over Tri-State More Colorado co-ops announce clean energy goals Ski industry climate change efforts shift to electric utilities and their regulators Public Utilities Commission rejects Tri-State motion to exclude Colorado Energy Office from exit charge case Tri-State claims that co-ops "have intervened on Tri-State's behalf at the PUC” don’t add up Colorado state legislators urge Public Utilities Commission to determine Tri-State exit charge United Power says Tri-State policies are turning away large customers Next PUC Commissioner John Gavan "consensus choice" of Governors Hickenlooper and Polis Tri-State policy change discourages battery projects in rural Colorado and New Mexico Colorado Public Utilities Commission orders Tri-State to "satisfy or answer" exit charge complaint from Delta Montrose Electric United Power seeks solutions to "increasingly outmoded G&T business models" Clean Energy Means Business Summit highlights renewable energy opportunities and challenges in rural Colorado Governor-elect Jared Polis says moving Colorado toward more renewable energy will be a top priority Electric cooperative officials discuss cheap renewable energy and an “eroding monopoly” Delta Montrose Electric members vote for new financing options, supporting a potential buyout of Tri-State contract Poudre Valley Electric requests Tri-State policy changes and fuel mix study Holy Cross Energy plans to shift away from coal, aiming for 70% renewable energy What do corporate renewable energy commitments mean for electric utilities? Colorado Energy Plan approval will mean new renewable energy investments in rural Colorado Report: Tri-State could save $600 million by shifting from coal to renewable energy Delta Montrose Electric seeks new financing options to end contract with Tri-State Wind energy jobs in rural Colorado attract bipartisan support Colorado Energy Plan analysis shows switching from coal to renewable energy will boost jobs and local tax revenue Poudre Valley Electric and Xcel Energy Colorado President win national awards from Smart Electric Power Alliance Latest coal plant subsidy proposal could hit electricity bills in the West Moody’s report: “High quality renewable resources” could help Tri-State and Basin Electric navigate rising carbon transition risks Senator Heinrich highlights “frustrations in New Mexico” with Tri-State’s limits on local solar Moody’s report shows Tri-State’s coal plants are more expensive than new renewable energy Tri-State’s limits on local energy development are a growing problem for co-op members Governor Hickenlooper discusses Tri-State at the Climate Leadership Conference Bids for Xcel’s Colorado Energy Plan include a proposal for the world’s largest battery New wind and solar power in Colorado is now cheaper than existing coal plants Companies' 100% renewable energy goals are getting results in Colorado What does cheap solar mean for electric cooperatives? Colorado towns and cities are helping push utilities to embrace renewable energy How are electric cooperatives navigating the transition from coal to cheap clean energy? Blocked from building more solar projects, United Power shifts to community batteries Economic reality sets in for Tri-State efforts to expand the Holcomb coal plant Solar projects in the works in Grand and Jackson counties Mountain Parks Electric grapples with solar Categories
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