The proposal consists of a substantial cash infusion into Tri-State designed to finance the accelerated retirement of nearly 50 percent of Tri-State’s coal capacity not already slated for early closure, putting it in quick compliance with recent legislation. Guzman would replace the retired coal generation with a new portfolio that is in excess of 70 percent renewable. If implemented, this proposal would lower Tri-State’s costs immediately, enabling Tri-State to provide significant savings to members.
Additionally, the Guzman proposal provides substantial financial assistance to communities negatively impacted by the early retirement of coal plants, to be driven by engagement directly with those communities and other local partners. The proposal also contains flexibility for Tri-State to increase the renewable energy self-generation cap, allowing members to make more energy investments into their own communities.
Advancing the proposal further will require collaboration between Guzman Energy and Tri-State over the coming months, working in parallel with upcoming rulemakings associated with recently passed legislation in Colorado. Guzman presented the proposal to senior Tri-State staff, who agreed to evaluate the structure but postponed consideration until after implementation of the New Mexico laws and the completion of the Colorado rulemakings, sometime late next year at the soonest.
With this announcement, Guzman kicks off an effort to engage directly with Tri-State members and communities to identify and explore opportunities to further the goals of this proposal.