FERC orders favorable to Tri-State and member systems on treatment of qualified facilities

• Thirty member distribution systems granted PURPA waivers for qualifying facilities interconnections.
• Order vacated that prevented recovery of fixed costs from members interconnecting qualifying facilities.

(March 28, 2020 – Westminster, Colo.) – Two orders issued Friday by the Federal Energy Regulatory Commission (FERC) delivered favorable news to Tri-State and its member distribution systems. FERC regulates the rates and contracts of wholesale public utilities, including Tri-State.

The federal regulator’s orders align the treatment of qualifying facilities (QF) under the Public Utility Regulatory Policies Act (PURPA) with Tri-State’s not-for-profit, cooperative business model. QFs include small renewable energy facilities and cogeneration facilities.

“FERC addressed two important issues for our members,” said Rick Gordon, chairman of Tri-State and director of Mountain View Electric Association in Limon, Colo. “FERC’s orders ensure our members that want to transfer qualifying facility obligations to Tri-State can do so, and FERC will review as part of Tri-State’s overall tariff how Tri-State’s board can evaluate costs when another member takes power from a qualifying facility.”

The FERC orders address issues related to QFs and PURPA that were first raised by Tri-State in 2016:

• In Docket No. EL16-101-000, FERC granted 30 Tri-State member distribution systems a partial waiver of interconnection obligations for certain QFs under PURPA. For those 30 members, Tri-State will purchase capacity and energy from QFs located in the member’s service territory at Tri-State’s avoided cost. FERC also granted a related waiver request so that Tri-State’s member distribution systems would provide retail energy service to QFs.
• In Docket No. EL16-39-001, FERC vacated its prior order, which Tri-State had asked the FERC to rehear, that prevented Tri-State from recovering costs that a member distribution system would avoid if it interconnected with a QF. FERC will consider Tri-State’s cost recovery mechanism as part of Tri-State’ regular tariff proceedings. In the order, FERC stated the issue is “back at square one” as if FERC had never rendered an opinion on the issue.

These two orders followed other FERC orders issued on March 20 that accepted Tri-State tariff filings.

“Tri-State is delivering on all of the commitments in our Responsible Energy Plan,” said Duane Highley, Tri-State’s chief executive officer. “Our board approved greater flexibility for members to self-supply power and develop local renewable energy, we achieved our goal of having one rate-regulator, and we’re moving forward to reduce emissions and increase clean energy while keeping rates affordable.”

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.

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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.