Rocky Mountain Institute turned up the heat on Tri-State last year when it issued a report concluding 1 million consumers could save more than $600 million through 2030 if Tri-State retired some of its fossil-fuel plants. Now Guzman Energy says it has sufficient capital to help retire 800 MW of coal generation while also procuring cleaner energy.
“Rapidly changing economics, combined with new carbon reduction goals in states that include the majority of Tri-State’s members, mean there’s a lot at stake for those who own and are served by Tri-State,” Guzman President Chris Riley said in a statement.
The company’s proposal, said Riley, would help Tri-State and its members to immediately lower costs, “while simultaneously reaching compliance with new laws.” And while Tri-State is not currently interested in the proposal, Riley said the company looks forward to “taking the proposal directly to Tri-State’s owners and facilitating an open and transparent dialogue.”
Tri-State officials said the Guzman proposal lacked sufficient detail and “appeared to ask for exclusive negotiations.”
“Guzman Energy brought us an imaginative and creative high-level verbal proposal, which lacked any specific or meaningful detail or terms,” Tri-State CEO Duane Highley said in a statement. The company “requested a written proposal but Guzman refused to provide one, instead deciding to go the press,” he added.
With new energy legislation and rules in both Colorado and New Mexico, the company said the timing is not right to make a major change.
“Signing [an] exclusive agreement with a for-profit entity prior to development of state rules is not in the best interests of Tri-State members,” the company said.
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