Renewed strategic resource plan highlights Tri-State’s 55th annual meeting

Renewed strategic resource plan highlights Tri-State’s 55th annual meeting

More than 400 electric cooperative representatives and industry officials attended Tri-State Generation and Transmission Association’s 55th annual meeting, held April 4-5 at the power supplier’s Westminster, Colo., headquarters, where they were briefed on Tri-State’s renewed strategic approach to meeting its members’ current and future power requirements – which was reviewed by its board of directors earlier in the week.

“Our number one reason for being in business – the goal that has always been our primary focus – is to provide our member co-ops with safe, reliable and affordable electricity,” said Tri-State

Tri-State's board president Hub Thompson talks with attendees at the association's annual meeting held April 4-5.

executive vice president/general manager J.M. Shafer. “When our board authorized a comprehensive resource development strategy a couple of years ago, we recognized the necessity to have flexibility in order to make adjustments in response to our members’ power needs and changing market circumstances. The actions we’re taking accomplish that.”

Shafer outlined Tri-State’s rejuvenated, integrated approach to its short and long term resource planning, which is highlighted by several major components:

Aggressively pursuing additional energy efficiency and demand-side management programs for Tri-State’s 44 member cooperatives to help their residential, agricultural and industrial consumers better manage energy usage.

Installing or acquiring combined cycle natural gas generation resources designed to meet near-term member load growth, address the association’s current capacity deficit and provide increased capability to support the integration of renewable resources into Tri-State’s system.

Issuing a request for proposals for renewable energy resources in the near-term, with additional future acquisitions to diversify Tri-State’s generation portfolio and meet members’ requirements and obligations.

Continuing the process to construct a 700-megawatt coal-based unit at Sunflower Electric Power Corporation’s existing Holcomb (Kan.) Generating Station, targeted for commercial operation in the 2012-2013 timeframe. Tri-State’s development and acquisition of new generating resources in advance of the Holcomb Station expansion has the effect of delaying the need for a second proposed unit at the plant for the foreseeable future.

Moving forward with preliminary steps – including site development, environmental studies and water-use change case – for a future generating facility in southeastern Colorado.

Continuing to develop the Eastern Plains Transmission Project, a proposed joint venture with Western Area Power Administration targeted at adding much needed transmission capacity in eastern Colorado.

Exploring the possibility of participating with Xcel Energy in an integrated gasification combined cycle (IGCC) demonstration project in the region, to analyze the technology’s feasibility at high altitude using western coal.

“We believe our resource planning – which is a dynamic, evolving process – meets a number of goals,” Shafer said. “It addresses present and future energy concerns of our members, it’s a balanced approach to meeting our short and long-term obligations while positioning us well in the regional electricity market, and it will allow us to maintain a standard of reliability and achieve rate stability.”

In 2006, Tri-State delivered a record 13.1 million megawatt-hours of electricity to its 44 member distribution cooperatives, while recording an all-time high member peak demand of 2,309 megawatts in July. Combined with off-system energy sales, the G&T sold a total of 16.6 million megawatt-hours for the year, while its year-end assets totaled nearly $2.4 billion.

J.M. Shafer, Tri-State's executive vice president and general manager, outlined the G&T's renewed strategic resource planning efforts for the membership.

In keeping with its mission of providing its member co-ops with reliable, competitively priced electricity, Tri-State ended the year financially solid as it posted operating revenue of $846 million and $45.9 million in net margins.

Tri-State supplies power to 18 member electric co-ops in Colorado, 12 in New Mexico, eight in Wyoming and six in Nebraska, which in turn provide electricity to more than 578,000 meters or a population of approximately 1.4 million people.

Click here to view the Annual Meeting and Membership Session shows in the members-only section. Tri-State and member system employees can access this password-protected area.