The cooperative members of Tri-State Generation and Transmission Association, including Garland Light and Power and Big Horn Rural Electric, will avoid a wholesale rate increase for 2025.

The not-for-profit power supplier’s wholesale rate to members has increased 2.46% since 2017, according to a release, significantly below the rate of inflation over the nine-year period.  

“Through their ownership of Tri-State, our members enjoy competitively priced power, delivered with unrivaled reliability and the confidence that we have the resources to keep the lights on, even as we continue our energy transition,” said Duane Highley, Tri-State’s chief executive officer.  

Tri-State’s Board of Directors, representing its utility members across Colorado, Nebraska, New Mexico and Wyoming, approved the cooperative’s 2025 budget on Sept. 27. Tri-State's cost of service is incorporated into a formulary rate accepted by the Federal Energy Regulatory Commission. The formulary rate ensures Tri-State has the certainty to collect revenues to cover its cost of service and meet all financial goals, while maintaining the lowest margins possible. 

“Stable wholesale power costs are critical for distribution cooperatives and public power districts to affordably serve rural communities, many of which are in economically challenging areas across the West,” said Tim Rabon, chairman of the Tri-State Board of Directors and trustee of Otero County Electric Cooperative in New Mexico.  

“To achieve our members’ goal for rate stability, we are applying management levers, maintaining fiscal discipline and strengthening our balance sheet, all to help our members and those at the ‘end-of-the-line’ to prosper,” said Todd Telesz, Tri-State’s chief financial officer. “Tri-State remains a vigilant steward of our members’ capital and will continue to address the cost pressures and headwinds facing the electric utility industry.” 

The 2025 budget reflects the decision to transition Tri-State’s Colowyo Mine from producing coal to full reclamation in the latter part of 2025, though details including employee impacts have not yet been determined. Tri-State uses the coal produced at the northwest Colorado mine at Craig Station, which will retire its three generating units between 2025 and 2028.   

“As we face increased costs to operate and continue our energy transition, we had to look hard at our operations and see where we could lower costs,” said Highley. “This review resulted in making some hard decisions to existing plans, including accelerating the transition to reclamation at the Colowyo Mine.”