La Plate Electric Association’s electricity provider, Tri-State Generation & Transmission,
Coal is the most damaging fuel to our environment, climate and health. It’s also too expensive to sell, except in long-term contracts like ours.
Since it’s so expensive, investors have bailed on new American coal plant construction, with none built since 2014. In fact, 270 existing coal plants have been shuttered since 2010 – many fully functional. In Europe, insurance companies have discontinued insuring coal plants.
Of 600 North American utility executives surveyed, 52 percent expect coal generation to decrease significantly, and another 27 percent to decrease moderately, replaced largely with solar and wind resources. As renewable energy captures market share, coal asset value quickly shrinks.
Why should we care, aside from paying more than we have to?
Well, TSG&T’s staggering $3.2 billion debt is borrowed against – you guessed it – coal plants, their principle asset. The chances of TSG&T being able to re-finance debt against their plants vaporizes with each passing year.
In a recent public meeting, TSG&T confessed its debt practice: paying interest only (not reducing principal), then re-financing their huge debts indefinitely. TSG&T’s 20-plus debts come due intermittently between now and the 2040s – with $250 million due in 2024.
What happens when TSG&T’s financiers refuse to re-finance their debts?
TSG&T has no Plan B.
Kirby MacLaurin
Durango
