Board of directors approves 2010 budgets

• Capital plan includes significant investment in power delivery system
• Carbon management technology research and demonstration efforts continue
• Wholesale rates to member cooperatives remain stable

Tri-State’s board of directors approved the power supplier’s 2010 operating and capital construction budgets on Sept. 3, which include significant investments in electric transmission infrastructure throughout its 250,000 square-mile service territory and continuing investments in new technology development.

The 2010 capital budget includes $142.6 million for a number of transmission-related projects throughout Tri-State’s service territory – the first phase of its 10-year transmission capital construction plan that includes approximately $1.9 billion in infrastructure investments through 2019.

“We have put a significant focus on transmission development because it is vital to ensuring the long-term viability of our power delivery system and meeting our goals and mission,” Tri-State executive vice president and general manager Ken Anderson said.  “Not only is a strong transmission network a critical element for us to reliably meet our member co-ops’ load requirements, but it also will afford us the opportunity to provide the necessary interconnections as future generating resources are developed,” he said.

Tri-State is currently moving forward with several new transmission projects, including a partnership with Xcel Energy to construct needed power lines from Colorado’s San Luis Valley to Pueblo, and the development of new lines from New Mexico into southwest Colorado.  As part of its long-range plans, Tri-State is examining a number of other large projects, including major transmission lines and infrastructure in eastern and southern Colorado that support reliability, growth and the interconnection of new generation resources.

“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 system 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.

Included in the budget is $2.6 million set aside for new technology research and development.  The association is hosting a major study of the Electric Power Research Institute to integrate solar power with its coal-based Escalante Station in New Mexico, and is participating in several coal-based carbon capture and sequestration projects.  Many other Tri-State research projects and studies are related to greenhouse gas emission management.

“Tri-State continues to invest in a wide range of new technology research and demonstration projects to help us better understand how we could manage greenhouse gas emissions across our enterprise,” Anderson said.  “We’re addressing all the risks facing the utility industry to ensure reliable, affordable and responsible power delivery.” 

Most of the projected cost of service in the 2010 operating budget of $1.2 billion 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 rate schedule will remain unchanged for 2010, with the average wholesale rate to its member co-ops holding steady at approximately 6.5 cents per kilowatt-hour for 2010.

Updated: September 4, 2009