Will New Federal Payout Formula for Tri-State Send Members to the Exits?

A federal agency has issued an order in the ongoing faceoffs between the Tri-State Generation and Transmission Association and its members in Colorado and three other states, clearing the way for a potential reshaping of a significant chunk of the region’s energy landscape.

The Federal Energy Regulatory Commission adopted a formula for showing electric cooperatives what it would cost them to end their contracts with the wholesale power provider. The parties are poring over this week’s 247-page order and crunching numbers.

Tri-State has until Jan. 19 to submit the amounts for all 42 member cooperatives, 17 of which are in Colorado.

United Power, Tri-State’s largest member, didn’t wait to hear its exit fee before deciding to leave. The Brighton-based cooperative gave notice two years ago that it would terminate its contract May 1, 2024. The utility has signed an agreement to buy electricity from Guzman Energy, a wholesale supplier that has contracts with other former Tri-State members.

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Kit Carson Electric Cooperative (KCEC), Taos NM

KCEC has partnered with Guzman Energy since 2016. KCEC’s goals were to stabilize their wholesale cost of power; KCEC’s wholesale rates had been raised at least 10 times over the 12-year period preceding its exit from its legacy G&T supplier

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