FERC accepts settlement on Tri-State’s formulary rates
(January 6, 2026 – Westminster, Colo.) The Federal Energy Regulatory Commission (FERC) has accepted an uncontested settlement of the Tri-State Generation and Transmission Association formulary wholesale rate filing, which will create rate clarity for the not-for-profit association’s 40 members.
With its decision announced Dec. 29, FERC’s acceptance of the settlement concludes a multi-year process that allows Tri-State to timely recover costs and resolves the uncertainty of potential litigation, while recognizing the settlement as “fair and reasonable and in the public interest.”
“It is a testament to Tri-State's cooperative process that we achieved a settlement of the wholesale rate despite the complexity of the issues involved. This result is a tribute to our membership and the Tri-State Rate Design Committee that invested considerable time and effort to achieve this result, and we thank them for this effort,” said Duane Highley, Tri-State CEO.
Under the formulary rate, Tri-State maintains its postage stamp rate with the same components for all members. The rate recovers only costs and a minimal margin allowing for the lowest possible rates to the membership. The rate is adjusted annually based on the budget approved by the Tri-State board of directors and includes an annual mechanism to true-up to actual costs. The board approved the 2026 budget in September 2025.
Tri-State also noted that the settlement resolves several key issues, including:
- Introduction of a hybrid generation demand methodology effective Jan. 1, 2026;
- Inclusion of provisions for a deferred revenue fund to help offset costs to members affected by the settlement;
- Initiation of two studies to be conducted as part of the next rate evaluation, one related to State Regulatory Costs and the other related to Non-Network transmission; and
- Approval for a comeback rate filing to be effective Jan. 1, 2030, that will allow Tri-State and its members to utilize the settled rate for a period of years and then develop any improvements that may be needed.
About Tri-State
Tri-State is a power supply cooperative, operating on a not-for-profit basis, serving electric distribution cooperatives and public power district member-owners in four states. Together with our members, we deliver reliable, affordable and responsible power to more than a million electricity consumers across nearly 200,000 square miles of the rural West. Visit www.tristate.coop.
Contact:
Amy Robertson, 303-254-3743, amy.robertson@tristategt.org
Mark Stutz, 303-254-3183, mark.stutz@tristategt.org
Certain information contained in this press statement are forward-looking statements including statements concerning Tri-State’s plans, future events, and other information that is not historical information. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those described from time to time in Tri-State’s filings with the Securities and Exchange Commission. Tri-State’s expectations and beliefs are expressed in good faith, and Tri-State believes there is a reasonable basis for them. However, Tri-State cannot assure you that management’s expectations and beliefs will be achieved. There are a number of risks, uncertainties and other important factors that could cause actual results to differ materially from the forward-looking statements contained herein.