FERC accepts Tri-State's contract termination payment filing
(June 12, 2020 – Westminster, Colo.) – Today, the Federal Energy Regulatory Commission accepted Tri-State's contract termination payment filing and referred it to FERC's hearing and settlement judge procedures.
Tri-State's Chief Executive Officer Duane Highley made the following comments on FERC's order:
“FERC's acceptance of Tri-State's contract termination payment filing is a decidedly positive outcome and an important step forward for Tri-State's members, each of which now has a voice and will be treated equally on wholesale contract and rate matters.
"We believe this issue is now properly before the appropriate regulatory commission. FERC will make a decision that is just and reasonable for all of our members, including those seeking to terminate their contracts. Our next step is to participate in FERC's settlement and hearing process.
"Importantly, FERC rejected arguments that it did not have jurisdiction on contract termination payments.
"Tri-State's contract termination payment methodology was developed by a Contract Committee of Tri-State's utility membership, and then approved by Tri-State's Board of Directors, in April 2020. The methodology determines a fair price for a member to terminate its wholesale power contract with Tri-State without shifting costs from that member or to that member."
As a FERC-regulated utility, Tri-State is required to file the methodology for approval. Separately, on June 9, FERC approved the Delta-Montrose Electric Association withdrawal docket, which allows the cooperative to exit Tri-State, as planned, on June 30, 2020.
About Tri-State
Tri-State is a not-for-profit cooperative of 46 members, including 43 member utility electric distribution cooperatives and public power districts in four states, that together deliver reliable, affordable and responsible power to more than a million electricity consumers across nearly 200,000 square miles of the West. For more information about Tri-State and our Responsible Energy Plan, visit www.tristate.coop.
Contact:
Lee Boughey, 303-254-3555, lboughey@tristategt.org
Mark Stutz, 303-254-3183, mstutz@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.