Financing the future: Tri-State’s green loan milestone

Utility poles and power lines silhouetted against a golden sunset with mountains in the background.

Tri-State Generation and Transmission Association, Inc. entered into a $250 million green loan, structured as a senior secured revolving credit construction facility, marking a significant milestone as Tri-State evolves its energy mix. The green financing structure aligns with the Loan Syndications and Trading Association’s green loan principles, ensuring all proceeds are directed toward eligible green projects.

CoBank served as the lead arranger of this agreement holding $100 million. Farm Credit System partners held the remaining $150 million, provided through other financial institutions with the National Rural Utilities Cooperative Finance Corporation and RBC Capital Markets serving as co-arrangers.

The green facility will help finance the development of two major solar installations and other green projects, such as battery energy storage systems, in the future. The project has a capacity of the following:

  • Axial Basin Solar Facility (145 MW)
  • Dolores Canyon Solar Project (110 MW)

Together these projects will power tens of thousands of homes and support Tri-State’s goal of achieving 70% renewable energy by the end of 2030. The Axial Basin Solar Facility, Dolores Canyon Solar Project and battery storage projects will contribute to local property taxes and create jobs in the communities.

Importantly, this green financing initiative aligns with Tri-State’s 2023 Electric Resource Plan, which was approved by the Colorado Public Utilities Commission. The ERP outlines a preferred portfolio that includes 1,350 MW of renewable, hybrid and standalone storage resources and is designed to meet stringent GHG reduction targets and renewable energy standards while maintaining reliability and affordability for Tri-State’s members.

Tri-State provides wholesale power and transmission services to 40 utility members across Colorado, Nebraska, New Mexico and Wyoming. This green financing initiative underscores Tri-State’s commitment to sustainable energy while prioritizing grid resilience, affordability and regional economic growth.