SDCEA Board Supports Renewing Contract to Drive Energy Innovation

SDCEA Board Supports Renewing Contract to Drive Energy Innovation

The SDCEA Board of Directors has announced their support for extending the cooperative’s wholesale power purchase contract with Tri-State Generation and Transmission into 2066. This is a pivotal step toward advancing reliable energy solutions, managing costs, and investing in renewable energy projects. The move demonstrates a long-term commitment to sustainable power generation and reinforces the cooperative’s principle that we are stronger together.

The board voted unanimously to execute the new, revised contract at their April 23, 2025, monthly board meeting. The now-former agreement had an end date of 2050.

Access to $2.5 Billion in Federal Funding

A key advantage of the 16-year contract extension is that it enables Tri-State to access to $2.5 billion in federal and private funding over the next 6–10 years taking advantage of a $679 million investment stimulus received through the USDA New Era Grant Program. This funding will enable the elimination of stranded assets (such as retired coal plants) and the development of new energy generation resources at the lowest cost possible. These initiatives promise to maintain competitive energy rates; help control costs and build essential capital for future sustainability.

Building a Shared Reliable and Cost-Effective Energy Future

The renewed contract allows SDCEA to collaborate with cooperatives across the region, leveraging shared resources to achieve reliability through firm generation and transmission resources, and to manage costs effectively. Although the cost of delivery of electricity is expected to increase across the nation in coming years, spreading costs across multiple cooperatives ensures greater cost-savings, stability and resilience.

Additionally, SDCEA will join cooperative forces to become a more competitive player in new energy markets rather than navigating these challenges independently. This strategic collaboration signals a commitment to tackling industry challenges head-on while positioning SDCEA to deliver long-term financial and operational benefits to its members and communities.

Advancing Renewable Energy Goals

Tri-State has also recently filed its resource adequacy plan with FERC and the Colorado PUC. The innovative plan meets industry-standard Level 1 reliability metrics and surpasses these by adhering to Tri-State’s heightened Level 2 reliability standards. These measures ensure resource adequacy during extreme winter and summer weather events, while also advancing aggressive sustainability objectives. By 2030, Tri-State is committed to achieving the following milestones:

• An 80% reduction in greenhouse gas emissions associated with Colorado wholesale electric sales (relative to 2005 levels).

• Providing 70% of energy to members from renewable resources.

• Full compliance with Colorado’s Renewable Energy/Portfolio Standards.

Commitment to a Sustainable Energy Marketplace

“By renewing this contract, we are not just building a stronger energy network; we are investing in a cleaner, more sustainable energy future for our communities,” said Sandra Attebery, SDCEA’s board chair. “This approach allows us to pool resources, share costs, and maintain reliability while driving forward innovation in clean energy.”

The contract extension also increases the potential for local energy generation and storage from the current five percent limit to 20 percent, should SDCEA elect to take advantage of this provision.

Empowering Communities and Cooperative Values

Through this initiative, SDCEA reaffirms its commitment to its core mission of supporting our communities, as well as cultivating innovation, and promoting sustainability. From reduced greenhouse gas emissions to greater energy reliability, the contract renewal is designed to better serve members and support our energy future.