Tri-State and United Power execute settlement Term Sheet
- Terms outline Settlement Agreement for power purchases and sale of utility assets.
- Following execution of a Settlement Agreement, United Power and Tri-State will file to dismiss litigation in the Adams County District Court.
- Settlement Agreement does not address contract termination payment proceeding before federal regulators.
(Westminster/Brighton, Colo., Nov. 8, 2023) On Nov. 1, 2023, Tri-State Generation and Transmission Association, Inc. (Tri-State) and United Power, Inc. (United Power) executed a Term Sheet that sets forth terms for the two utilities to make good faith efforts to execute a formal Settlement Agreement involving power purchases and the sale of utility assets from Tri-State to United Power.
The Term Sheet provides for a mutual release of claims and that the parties will cooperate to complete a Settlement Agreement and related agreements by December 8, 2023, at which time United Power and Tri-State will jointly file for dismissal of the lawsuit, with prejudice, pending in the Adams County District Court.
On Nov. 1, 2023, Tri-State’s Board of Directors unanimously approved the Term Sheet. On Nov. 6, 2023, United Power’s Board of Directors unanimously approved the Term Sheet.
Tri-State and United Power will continue to take actions to ensure United Power’s timely exit by May 1, 2024, upon payment of a contract termination payment, with the amount to be set by the Federal Energy Regulatory Commission (Commission).
The Settlement Agreement will not address the Commission proceeding related to the contract termination payment that members will pay to Tri-State to terminate their contracts early and withdraw from membership. The parties expect the Commission to issue a decision in that proceeding shortly.
No further public comments will be made about the Settlement Agreement.
Tri-State is a power supply cooperative of 45 members, operating on a not-for-profit basis, including 42 utility electric distribution cooperative 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.
About United Power
United Power is a member-owned, not-for-profit electric cooperative, delivering electricity to homes, farms, and businesses throughout Colorado’s northern Front Range. The cooperative is one of the fastest-growing electric co-ops in the nation, and in June 2021 joined the elite ranks of cooperatives serving more than 100,000 meters. The 900-square mile service territory extends from the mountains of Coal Creek and Golden Gate Canyon, along the I-25 corridor and Carbon Valley region, to the farmlands of Brighton, Hudson, and Keenesburg. United Power is also a founding member of the NextGen Cooperative Alliance, which is dedicated to expanding the power supply and procurement options available to distribution co-ops and reforming the traditional generation and transmission business model. For more information about United Power, visit www.unitedpower.com or follow the cooperative on Facebook, X (formerly Twitter), LinkedIn, YouTube, and Instagram.