2023 Tri-State Investor Presentation slide image

2023 Tri-State Investor Presentation

RESILIENCE OUR DIFFERENT IS BETTER We are a member-owned cooperative This means we are not driven by profits; we're driven by the communities we serve. Unlike investor-owned utilities (IOUS), we have: No EPS targets • No high dividend payout ratios No EPS-driven M&A activity Our equity levels Our equity is comprised solely of patronage capital, similar to retained earnings of a for- profit company. We don't have paid-in capital on common stock. A valuable service Cooperatives took up the work of bringing electricity to rural communities when other power providers would not, working together to share the costs and risks of generating and transmitting electricity to deliver the benefits of this critical service. Even today, cooperatives serve far fewer consumers per mile than other types of utilities, but the value of membership is greater than ever. Long-term wholesale power contracts Contracts obligate our member systems to pay all of our costs and expenses, including debt service, associated with owning and operating our power supply business. Over the last few years, we have worked with our members to create more flexibility in our contracts to better serve the growing diversity of members. We are among the largest generation and transmission cooperatives in the country in terms of total assets, annual operating revenue, miles of transmission line owned, energy generation and sales. As a cooperative, everything we do is member- driven and member-focused. Our board of directors is made up of representatives from each of our 42 member systems, and with their guidance and governance, we continue to work with our member systems to serve the needs of communities and consumers across the West. 2023 TRI-STATE INVESTOR PRESENTATION | 19
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