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| New Mexico's reliance on Tri-State. (Albuquerque Journal map; click to enlarge it.) |
However, many rural co-ops are running into a problem: they've signed long-term leases with Colorado-based wholesale supplier Tri-State Generation and Transmission, which sells electricity to 43 distribution co-ops spread over 200,000 square miles in Arizona, Colorado, Nebraska, New Mexico, and Wyoming. But the co-ops can't meet the energy requirements while buying power from Tri-State, Robinson-Avila reports. Though Tri-State is phasing out coal and is pursuing an "aggressive" green energy plan, there are few specifics on the company's website, so co-ops could be gambling on whether they'll be able to comply with mandates by staying with Tri-State. The company says 30% of its electricity now comes from renewables.
"The co-ops want freedom to build or purchase a lot more renewable energy independent of Tri-State, which limits self-generation by its member utilities to 5% of their total electric load, meaning 95% of their power must come exclusively from Tri-State under long-term agreements that stretch to 2050," Robinson-Avila reports. Paying a hefty exit fee to then sign with alternative providers . . . is becoming more appealing to some co-ops because they can rapidly integrate renewables onto their grids at potentially lower cost than the wholesale power Tri-State provides."
In addition to its efforts to ditch coal and embrace greener power generation, Tri-State is considering changing its bylaws to give co-op members more flexibility to pursue renewable power on their own while remaining customers, Robinson-Avila reports.
from The Rural Blog https://ift.tt/2p94yeb A power shift in the Southwest as rural electric co-ops in NM. and Colorado struggle to meet clean energy mandates - Entrepreneur Generations
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