ORGANIZATION

12 Months Ended

Dec. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

ORGANIZATION

ORGANIZATION

Tri‑State Generation and Transmission Association, Inc. (“Tri-State,” “we,” “our,” “us,” or “the Association”) is a taxable wholesale electric power generation and transmission cooperative operating on a not-for-profit basis serving large portions of Colorado, Nebraska, New Mexico and Wyoming. We were incorporated under the laws of the State of Colorado in 1952. We have three classes of membership: Class A – utility full requirements members, Class B - utility partial requirements members, and Non-Utility Members. We have forty-two electric distribution member systems who are Class A members, to which we provide electric power pursuant to long-term wholesale electric service contracts. We currently have no Class B members. We have three Non-Utility Members. Our Class A members and any Class B members are collectively referred to as our "Utility Members." Our Class A members, any Class B members, and Non-Utility Members are collectively referred to as our "Members." Our rates are subject to regulation by the Federal Energy Regulatory Commission (“FERC”). On December 23, 2019, our stated rate to our Class A members was filed at FERC and was accepted by FERC on March 20, 2020. On August 2, 2021, FERC approved our settlement agreement related to our stated rate to our Class A members. On June 16, 2023, we filed with FERC a new Class A rate that uses a formula rate and requested for the new rate to take effect on January 1, 2024. See Note 14—Commitments and Contingencies—Legal.

We also sell a portion of our electric power to other utilities in our regions pursuant to long-term contracts and short-term sale arrangements. In 2023, 2022 and 2021, total megawatt‑hours sold were 18.2, 18.6 and 17.6 million, respectively, of which 90.7, 88.8 and 89.1 percent, respectively, were sold to Utility Members. Total revenue from electric sales was $1.4 billion for 2023 and 2022 and $1.3 billion for 2021 of which 86.2, 82.4, and 86.4 percent in 2023, 2022 and 2021, respectively, was from Utility Member sales. Energy resources were provided by our generation and purchased power, of which 48.2, 54.3 and 52.1 percent in 2023, 2022 and 2021, respectively, were from our generation.

Power is provided to Utility Members at rates determined by our Board of Directors (“Board”), subject to FERC approval. Rates are designed to recover all costs and provide margins to increase Utility Members’ equity and to meet certain financial covenants, including a debt service ratio (“DSR”) requirement and equity to capitalization ratio (“ECR”) requirement.

We supply wholesale power to our Utility Members through the utilization of a portfolio of resources, including generation and transmission facilities, long‑term purchase contracts and short‑term energy purchases. Our generating facilities also include undivided ownership interests in jointly owned generating facilities. See Note 3—Property, Plant and Equipment. In support of our coal-fired generating facilities, we have direct ownership in coal mines.

We, including our subsidiaries, employ 1,120 people, of which 215 are subject to collective bargaining agreements. None of these agreements expire within one year.