Northwest Rural Public Power District refuses to pay wholesale power bill to Tri-State 

• NRPPD has not paid its May 2024 wholesale power bill and disavows paying its June 2024 wholesale power bill to its not-for-profit wholesale power supplier, Tri-State Generation and Transmission Association, despite knowingly accepting all-requirements power service from Tri-State.

• NRPPD’s failures impose costs on Tri-State's members and create unnecessary risk for NRPPD’s own customers, requiring Tri-State to respond to ensure NRPPD’s payment of its wholesale power bill to Tri-State.

• NRPPD is a member of Tri-State, takes all-requirements service from Tri-State and its wholesale power contract with Tri-State remains in full effect, as NRPPD did not comply with the Federal Energy Regulatory Commission-ordered contract termination payment tariff. 

(July 22, 2024, Westminster, Colo.) Hay Springs, Neb.-based Northwest Rural Public Power District (NRPPD) has refused to pay its wholesale power supplier, Tri-State Generation and Transmission Association, for its May and June 2024 wholesale power bills, totaling $1.154 million, for power and services NRPPD received through Tri-State and delivered to its customers.  

“To accept benefits and not pay one’s bills is irresponsible,” said Tri-State CEO Duane Highley. “NRPPD is taking service from Tri-State, remains a member of Tri-State and must pay its bill to Tri-State for the power it has received and sold to its customers, so that those costs don’t have to be paid by Tri-State's other members, who meet their commitments. As a cooperative operating on a not-for-profit basis, Tri-State and our other members are hurt by NRPPD not paying its bills and forcing unnecessary legal costs.” 

NRPPD’s actions force Tri-State's 40 other members to bear the costs for the service NRPPD continues to take and forces Tri-State to take expensive legal actions on behalf of its members. NRPPD has wrongly claimed to a Nebraska state court that there is a dispute between Tri-State and Basin Electric Power Cooperative, which sells power to Tri-State, regarding who is owed payment from NRPPD, when in fact, no such dispute exists.  

On July 17, Tri-State and Basin responded by jointly filing in federal court a stipulation unequivocally stating there is no dispute between the two wholesale power suppliers over the NRPPD’s bill payment, that the wholesale power contract between NRPPD and Tri-State remains in full effect, and that the court should issue an order releasing the funds to Tri-State as soon as possible.  

On July 22, Tri-State filed a lawsuit in the U.S. District Court for the District of Colorado seeking payment, interest and other damages for breach of contract by NRPPD. Tri-State stated in its lawsuit that under the terms of its all-requirements power service contract with NRPPD, the Nebraska public power district owes Tri-State approximately $413,000 for May 2024 wholesale power and services. Tri-State also invoiced NRPPD for approximately $741,000 for June 2024 power and services. NRPPD, however, has disavowed its responsibility to pay Tri-State for June services as well, which are due at the end of this month.  

“It’s important for NRPPD’s customers to understand that despite NRPPD’s reckless action, Tri-State currently continues to provide electric service for NRPPD’s customers, especially as the irrigation season ramps up, and that NRPPD is frivolously spending its customers’ money in a needless lawsuit,” said Highley. “Tri-State takes seriously the commitment to rural communities to work with our members to keep the lights on, and, as opposed to NRPPD, we would never play games with the reliability of our members’ power needs.”   

NRPPD incorrectly claims it is no longer a Tri-State member. NRPPD provided a notice to withdraw from Tri-State effective May 1, 2024, but did not comply with the Federal Energy Regulatory Commission (FERC)-ordered contract termination payment (CTP) tariff, has not paid a CTP to Tri-State, and accordingly, remains a member of Tri-State.   More important, Tri-State continues to provide wholesale power service to NRPPD, incurring substantial costs to do so.   

“The only winners in this scenario are NRPPD’s lawyers, who have been paid handsomely to pursue a strategy designed to create havoc for Tri-State's membership so NRPPD can leave Tri-State at the lowest possible cost to them and the highest cost to the remaining members,” said Highley. “Tri-State will continue to protect its members and the communities they serve across the rural West.” 

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 members in four states. Together with our member-owners, we 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.    

Contact   

Lee Boughey, Vice President, Communications, (720) 670-6696, Lee.Boughey@tristategt.org   

Mark Stutz, (303) 254-3183, Mark.Stutz@tristategt.org@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.