S&P downgrades Tri-State credit rating as members press for defection

WESTMINSTER — Standard and Poor’s slightly downgraded its rating for power wholesaler Tri-State Generation and Transmission Association Inc. last week, in part due to two of its largest customers trying to end its contracts with the company.

In a statement from the ratings firm, S&P downgraded Tri-State’s long-term rating from an A to an A- and its short-term rating from A1 to A2. While both of those figures are still considered investment grade, S&P believes Tri-State could face a downturn in the coming years upon certain events taking place and could impact its ability to repay debt.

S&P mainly cited Durango-based La Plata Electric Association Inc. and Brighton’s United Power Inc. as reasons for the drop. The two co-ops allege Tri-State is effectively refusing to allow them to leave the association and is asking the Colorado Public Utilities Commission to make Tri-State give them quotes for exit fees. The PUC is scheduled to hear preliminary arguments on those complaints in its meeting Wednesday.

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Those two co-ops combined make up over 20 percent of Tri-State’s revenue this calendar year.