Tri-State Generation and Transmission Association members will see no rate increase next year as the energy supplier prepares to begin winding down its coal operations in Northwest Colorado.
Representing utility members across Colorado, Nebraska, New Mexico and Wyoming, the power supplier's board of directors approved the rate Friday as part of the cooperative's 2025 budget process.
"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," Tri-State Board of Directors Chair Tim Rabon said in a statement.
Tri-State includes utility electric distribution cooperative and public power district members in four states and counts more than 1 million electricity consumers across roughly 200,000 square miles of the rural West.
The company said the 2025 rate approval also reflects a wider budgetary trend as the power supply cooperative begins to wind down its Northwest Colorado coal operations through a phased approach beginning next year.
"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," Chief Executive Officer Duane Highley said in a statement.
"This review resulted in making some hard decisions to existing plans, including accelerating the transition to reclamation at the Colowyo Mine," added Highley.
According to a news release, Tri-State will begin to transition the Colowyo Mine from coal production with a larger focus on reclamation efforts beginning at the end of 2025.
Coal produced at the mine southwest of Craig on the border between Moffat and Rio Blanco counties is used at Craig Station and its three generating units, all of which are scheduled to retire between 2025 and 2028.
Additional details on the transition from production to reclamation, including how the process will impact employees, have yet to be determined, said Lee Boughey, Tri-State's vice president of communications.
Boughey said more information on the transition process would be provided at the start of 2025 after the energy supplier submits a revised mining plan to the state's Department of Reclamation, Mining and Sustainability to reflect the amount of coal Tri-State will produce next year along with its planned reclamation activities.
Colowyo Mine employees currently work to produce coal and perform some reclamation work, which refers to the process of restoring land disturbed by mining activities to conditions consistent with its pre-mining state in accordance with approved reclamation standards.
"In the reclamation process, land is contoured similar to its natural topography, topsoil is replaced and native vegetation is restored, with long-term monitoring of the site in order to ensure stabilization of soils, vegetation and protection of water resources," explained Boughey.
The closure of Colowyo Mine -- along with Craig Station and another coal mine that fuels it -- is forecast to do widespread harm in Craig and Moffat County, which could lose more than 400 high-paying jobs and 44-47% of local taxing districts' tax revenue as a result.
Tri-State announced in June that it planned to commit to a community economic development trust fund that would supply $22 million in direct payments to the counties from 2026-29.
Beyond the $22 million, the wholesale power supplier has offered to backstop property tax revenue by providing minimum payments of lost property tax revenues up to $48 million from 2028-38.