SUBSEQUENT EVENTS

3 Months Ended

Mar. 31, 2024

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

In May 2024, the conditions for the effectiveness of a tolling agreement with a third party were satisfied that gives the third party the exclusive right to receive all capacity and electric energy through the operation of both units at our Knutson Generating Station. This arrangement began on May 1, 2024 and continues to December 31, 2027. This arrangement has been determined to be a lease, with us as lessor and the third party as lessee, as the third party has the right to direct the use of Knutson Generating Station by receiving all of the economic benefits of the facility, controls the fuel source provided to the facility and controls the dispatching of the electric energy from the facility.

In March 2024, we executed an asset purchase agreement to purchase the 145 MW Axial Basin Solar project being developed in northwestern Colorado located near the Colowyo Mine. In April 2024, we closed on the acquisition of Axial Basin Solar project, terminated the power purchase contract for this project and issued a notice to proceed with construction to the contractor. In April 2024, we executed an asset purchase agreement to purchase the 110 MW Dolores Canyon Solar project being developed in southwestern Colorado. We expect to close on the acquisition of Dolores Canyon Solar project in the second quarter of 2024. We are currently evaluating the impact of these agreements on our consolidated financial statements.