Tri-State board approves 2011 budgets with no change in rates for coming year

Tri-State’s board of directors has approved the power supplier’s 2011 operating and capital construction budgets, which include significant investment in its transmission system to serve member loads and support system reliability throughout Colorado, New Mexico, Wyoming and Nebraska.

"As a member-owned, not-for-profit utility, Tri-State remains focused on affordably and responsibly serving our rural cooperatives' electric needs," said Tri-State executive vice president and general manager Ken Anderson.  "We continue to bolster reliability, ensure environmental performance and invest in transmission and technology development that is key to our future."   

Tri-State's 2011 capital construction budget includes $299 million for projects, including $160 million in transmission investments.  Tri-State's 10-year capital outlook for transmission estimates $1.2 billion in investments to ensure the association can meet member needs across its four-state, 200,000 square-mile service territory.

"We continue to place a significant focus on transmission infrastructure, as it is vital to ensuring rural communities' access to reliable and affordable electricity," said Anderson.  "A stronger transmission network will also better connect future renewable and conventional generating resources."

Also included in the budget is $2.1 million specifically for new technology research and development.  The association is hosting a study to integrate concentrated solar power with its coal-based Escalante Station in New Mexico, participating in an $11 million carbon sequestration assessment in northwestern Colorado, as well as in several coal-based carbon capture and sequestration projects.   

"Technology development is central to our ability to manage greenhouse gas emissions," Anderson said.  "Through investment in research and demonstration projects, we can help ensure affordable and responsible power for the long term."

While several other utilities in the region are implementing rate increases, Tri-State's 2011 operating budget of $1.2 billion calls for its wholesale rate to its member co-ops to remain stable – holding for the third consecutive year at 6.5 cents per kilowatt-hour.   

"In what continues to be a difficult financial and economic environment for many of the association’s members and the rural communities they serve, Tri-State’s ability to meet its obligations to deliver affordable and reliable power, respond to increasing mandates and regulations, and pursue its strategic initiatives without increasing rates is providing value to the members," said Rick Gordon, Tri-State’s board chairman.   

The majority of Tri-State’s projected cost of service is allocated to fixed cost items such as leases, taxes and financing expenses, and committed costs which include fuel, contract and market purchases, and power delivery costs.   

"Tri-State's capital and operating budgets not only outline the expense and revenue requirements and capital investments necessary to responsibly serve the needs of our 44 member co-ops, but they also are a statement that we are addressing the issues and risks that shape how we will continue to provide high-quality service while protecting affordability for our members," Anderson said.

Updated: September 20, 2010