By Mark Stutz
A landmark settlement that sets near-term targets for greenhouse gas emission reductions prior to 2030 has been reached with more than two dozen parties on Phase I of Tri-State Generation and Transmission Association’s 2020 Electric Resource Plan (ERP), currently before the Colorado Public Utilities Commission (CPUC).
Tri-State has agreed to reduce the greenhouse gas emissions related to its wholesale electricity sales in Colorado as follows: 26% in 2025, 36% in 2026, 46% in 2027, and 80% in 2030. These amounts will be calculated based on Tri-State’s 2005 emissions baseline for wholesale sales in Colorado.
“Tri-State is grateful to our members, state officials, environmental advocates and labor representatives who worked with us to achieve this settlement, which is a meaningful advancement in our efforts to transform our cooperative as we responsibly serve reliable and affordable power to rural communities, for our members and Colorado,” said Duane Highley, CEO for Tri-State.
“Tri-State has come a long way. This important agreement marks the first time Tri-State is committing to near-term, enforceable reductions in climate-changing greenhouse gas pollution,” said Jon Goldin-Dubois, president of Western Resource Advocates. “While other utilities have commitments to reduce emissions in 2030, we know we don’t have a moment to spare in drastically reducing the fossil-fuel pollution that causes climate change. This agreement will make significant progress in accelerating emission reductions in the West, all while reducing costs for customers and supporting communities most impacted by the transition. We have much work to do, but Tri-State is to be commended for taking these steps to maximize near-term emission reductions, the most important action society can take to avoid the worst impacts of climate change.”
Details of settlement agreement
Parties have agreed that Tri-State will issue an RFP later this year to solicit bids for highly competitive renewable and storage resources coming online through 2026.
Tri-State will have incremental annual energy efficiency savings targets for its Colorado member system load of at least 0.35% in 2023, 0.5% by 2024, 0.75% by 2025, and 1% by 2030.
“In true cooperative spirit, this process ensured the members of Tri-State had the opportunity to participate and make their voices heard. We are encouraged by the plan’s environmental aspects as well as its recognition of the importance of reliability and affordability to our members,” said Jeff Wadsworth, president and CEO for Poudre Valley Rural Electric Association in Fort Collins, Colo., an intervenor in the case.
A third-party facilitated stakeholder engagement process will take place this year to explore community assistance opportunities for the City of Craig and Moffat County, Colo., as the region prepares for the retirement of Craig Station by 2030.
Parties have agreed through this settlement to an extensive set of modeling assumptions and inputs for Phase II of the ERP, such as the update of certain technical assumptions related to the social cost of carbon and methane, updates to reflect new Tri-State member partial requirements contracts, and other information. The additional modeling will include continued analysis of the retirement date for Craig Station Unit 3, which previous modeling validated would retire by 2030, to ensure reliable power to Tri-State’s utility members. The CPUC is expected to review and consider approval of the settlement during the first quarter of 2022.
“We appreciate Tri-State’s willingness to work with us and the other groups in this case to come up with a constructive solution and their acknowledgment that a just transition for coal workers and communities is an important obligation,” said Keith Hay, Director of Policy at the Colorado Energy Office. “We believe that approach will provide significant progress towards Colorado’s climate goals.”
In March 2022, Tri-State will complete a 4% wholesale rate reduction for its members. The first 2% of the wholesale rate reduction was implemented in 2021.
In February 2021, Tri-State entered into two energy imbalance markets, bringing 80% of its load into organized markets. Tri-State continues to work toward greater reliability and affordability through its continued support of a regional transmission organization and day-ahead market in the West.
Where Tri-State has retired coal power plants that it operates, it is working closely with community leaders to support their economic development goals, as well as support employees in transition.
Parties to the settlement
Parties to the settlement include Tri-State, its Wyoming and Colorado members distribution systems who intervened, the staff of the CPUC, the Colorado Energy Office, Colorado Independent Energy Association, Colorado Office of Utility Consumer Advocate, Colorado Solar and Storage Association/Solar Energy Industries Association, Conservation Coalition (including Sierra Club, Natural Resources Defense Council and Western Colorado Alliance), International Brotherhood of Electrical Workers Local #111, Interwest Energy Alliance, Western Resource Advocates and Southwest Energy Efficiency Project.
Mark Stutz is Public Relations Specialist, Tri-State Generation and Transmission Association, Inc.