FERC issues order regarding contract termination payments implementation filing
- FERC accepted contract termination payment methodology, which is in effect subject to refund
- FERC rejects filing on procedures to implement the contract termination payment methodology.
- Tri-State can refile implementation procedures.
(May 18, 2021 – Westminster, Colo.) – The Federal Energy Regulatory Commission (FERC) has issued an order on Tri-State Generation and Transmission Association’s filing of procedures to implement the power supply cooperative’s contract termination payment (CTP) methodology.
Tri-State separately filed with the FERC its methodology for calculating a member’s CTP, and then filed the proposed procedures in Tri-State’s Board Policy 125 by which Tri-State would implement the CTP calculation and a member’s withdrawal process.
The FERC previously accepted Tri-State’s CTP methodology on June 13, 2020. On May 14, 2021, FERC issued an order rejecting, without prejudice, Tri-State’s Board Policy 125 implementation procedure filing as inadequately supported.
“Tri-State’s member-developed CTP methodology was accepted by FERC, subject to refund, and set for FERC’s settlement and hearing process,” said Tri-State CEO Duane Highley. “We are reviewing FERC’s order on the CTP implementation procedure, which provides Tri-State opportunity to refile.”
Tri-State’s board of directors approved a member-developed CTP methodology, which was filed with the FERC on April 13, 2020. The CTP methodology was accepted by the FERC and is in effect. Board Policy 125, which was proposed to implement the CTP calculation and member withdrawal processes, was filed with the FERC on March 16, 2021.
Tri-State is a wholesale power supply cooperative, operating on a not-for-profit basis, with 45 members, including 42 utility electric distribution cooperative and public power district members 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, visit www.tristate.coop.
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.