In its latest filing with the Colorado Public Utilities Commission, Tri-State Generation & Transmission Association detailed its plans to shut down all three units at Craig Station by September 2028, accelerating the expected timeline for the coal-fired power plant’s closure by more than a year.

On Friday, Tri-State filed its 2023 Electric Resource Plan with the PUC, and phase I of the plan includes the retirements of the three Craig Station Units.

Previously, Tri-State had estimated the retirement dates for Units 1 and 2 on Dec. 31, 2025, and Sep. 30, 2028, respectively, with Unit 3 to be retired in 2030. Now, Tri-State’s updated plan includes an expedited closure date of Jan. 1, 2028, for Craig Station Unit 3, which would make Unit 2 the final unit to cease operation on Sept. 30, 2028.

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Explaining the accelerated timeline, officials with the power provider cited the changing “economics” of the industry, while touting the transition as part of an effort to increase carbon-free energy.

In a news release, Tri-State cited “increased operations costs and reduced member loads” as some of the driving forces for moving up the retirement of Craig Station Unit 3. Tri-State is the sole owner of Unit 3, whereas Units 1 and 2 are jointly owned by Tri-State, Xcel Energy, Platte River Power Authority, Salt River Project and PacifiCorp.

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“With resource costs increasing and Tri-State’s load reduced from three member systems terminating their contracts to withdraw from membership between 2024-2025, all of the scenarios modeled retire Craig Station Unit 3 by Jan. 1, 2028, to improve system economics,” Tri-State said in a statement.

In response to Tri-State’s filing, Moffat County Commissioner Tony Bohrer shared a statement with the Craig Press on county commissioners’ behalf.

“(Friday’s) filing by Tri-State to the Public Utilities Commission is not favorable for Moffat County,” the commissioners’ statement reads. “Jobs and tax base are negatively affected by a January 2028 shut-down for Unit 3. Thankfully, there is a process the Public Utilities Commission goes through that will analyze Tri-State’s proposal.”

County commissioners added that Moffat County and the city of Craig issued a joint request for quotes on Friday to hire legal representation during the upcoming hearings.

“We will be strongly advocating for our community, and we will be actively engaged in the Public Utility Commission hearings to assure our community ends up with the best possible results,” county commissioners said.

Craig Mayor Chris Nichols confirmed the city and county are looking to obtain an experienced attorney, saying that the early closure of Unit 3 will be “extremely hard on the workers and their families and the community.”

“The county is functioning as the fiscal agent on this project, which is intended to solicit and select a firm that will provide the best support for Craig and Moffat County as we present our positions on closure dates, asset mapping, community assistance and the disposition of Tri-State’s substantial water rights,” Nichols wrote in an email. “Understanding how to navigate the PUC process as they work to approve Tri-State’s Electric Resource Plan is certainly critical to securing a better position for Craig and Moffat County.”  

Without legal representation, Nichols fears the city and county will have little effective input in the process.  

Tri-State noted that the electric resource plan is subject to review, modification and approval by the Colorado Public Utilities Commission and input by intervenors.

According to Tri-State, the association anticipates that a decision from the Public Utilities Commission on Phase I of its Electric Resource Plan could arrive “mid-2024.”

Phase II of Tri-State’s plan focuses on the approval of bid selections for “actual resources and sites,” with an anticipated Public Utilities Commission’s decision on the second phase in mid-2025, according to Tri-State.

Tri-State is seeking federal funding that would assist the not-for-profit cooperative power supplier in addressing “the stranded costs of retiring coal units, ensuring lower emissions while protecting rural consumers from increased costs,” Tri-State CEO Duane Highley said in a statement.

According to Tri-State, its preferred plan would rely on funding through the U.S. Department of Agriculture’s Empowering Rural America program.

Highley is cited as saying Tri-State’s “ambitious” plan is a demonstration of “how Tri-State remains the most reliable, affordable and responsible power supplier for our members for now and well into the future.”

“With our state and federal partners, we will continue to work with our employees and the northwest Colorado community to support their transition,” he added.

In addition to the retirement of all Craig Station units by September 2028, Tri-State’s preferred plan also includes plans to “invest in the largest resource acquisition in its history” with the addition of “geographically distributed renewables and battery storage.”

The plan targets increased renewable energy resources and energy storage through 2031, as well as “a dispatchable natural gas unit in 2028, with carbon capture and sequestration added in 2031,” according to Tri-State.

Developments in “technologies, markets and the regulatory landscape” were cited as potential influences for the plan as it moves forward. Tri-State noted that future resource plans, as well as Phase II of its 2023 plan, will be reflective of those changes.

According to Nichols, city officials have been actively working to prepare for power plant’s closure and have several projects in progress now, including affordable housing projects, upgrading the city’s park amenities, developing a new industrial park and more.

Nichols also said the city is working on tax incentives for business development in the urban renewal districts, small business grants and renewable energy projects to reduce the city’s energy costs as well as reviewing city development codes, actively seeking and receiving federal and state grants. Craig is also starting construction of the whitewater park on the Yampa River and participating in a regional transportation study. 

“The city will continue working on economic development opportunities since the original announcement of the closure of Craig Station and will always explore opportunities,” Nichols said.