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.

SPONSORED CONTENT

Federal District Court Rules Corporate Transparency Act Unconstitutional . . . But Most Small Businesses Must Still Comply

Lyons Gaddis Real Estate and Business Attorney Cameron Grant shares important details of the Corporate Transparency Act (CTA).

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