Tri-State refunding $10 million in patronage capital to members
- Patronage capital refunds total more than $140 million in the last six years, showing strength and benefits of the cooperative business model, Tri-State membership.
- Tri-State’s 4% wholesale rate reduction for its members to be fully implemented in March 2022.
(December 17, 2021 – Westminster, Colo.) Not-for-profit wholesale power supply cooperative Tri-State Generation and Transmission Association’s Board of Directors has approved the return of $10 million in patronage capital refunds to its members. The return of capital to members is a hallmark benefit of cooperative membership.
Patronage capital represents each member’s ownership and investment in Tri-State, and is an accumulation over the years of the net margins earned by and allocated to those members. Including the return of patronage capital for 2021, Tri-State has returned approximately $140 million to its members over the past six years.
“The not-for-profit cooperative business model keeps power affordable in rural areas where the costs to deliver power are higher,” said Tim Rabon, chairman of the Tri-State board and a trustee for the Otero County Electric Cooperative in Cloudcroft, N.M. “Tri-State continues to deliver real value and savings to our members by returning capital and lowering wholesale rates.”
In addition, Tri-State will fully implement its 4% wholesale rate reduction for its utility members in March 2022. Tri-State’s wholesale rates were reduced 2% in March 2021, and a second wholesale rate reduction of approximately 2% will be implemented in March 2022. Prior to these wholesale rate reductions, Tri-State's wholesale rates were stable for five years.
“As Tri-State rapidly advances our clean energy transformation, we remain focused on affordability and reliability,” said Duane Highley, CEO for Tri-State. “By lowering wholesale power rates and returning capital to our members, we are helping mitigate the increasing costs of doing business and preserving affordability.”
Tri-State continues to provide reliable power and rate stability for its 42 utility members in Colorado, Wyoming, Nebraska and New Mexico. Its wholesale rate includes all the costs for delivery of power to the cooperative’s members, including energy, capacity, ancillary services, transmission, and a wide range of other products and services.
Tri-State is a power supply cooperative of 45 members, operating on a not-for-profit basis, including 42 utility electric distribution cooperative and public power district members in four states. Together with our member/owners, we deliver reliable, affordable and responsible power to more than a million electricity consumers across nearly 200,000 square miles of the West. For more information about Tri-State, visit www.tristate.coop.
Certain information contained in this press statement are forward-looking statements including statements concerning Tri-State’s plans, future events, and other information that is not historical information. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those described from time to time in Tri-State’s filings with the Securities and Exchange Commission. Tri-State’s expectations and beliefs are expressed in good faith, and Tri-State believes there is a reasonable basis for them. However, Tri-State cannot assure you that management’s expectations and beliefs will be achieved. There are a number of risks, uncertainties and other important factors that could cause actual results to differ materially from the forward-looking statements contained herein.