Tri-State, DMEA enter into membership withdrawal agreement
- DMEA to pay Tri-State $88.5 million, including $26 million for purchase of facilities, and forfeit $48 million in patronage capital.
- Subject to certain approvals, including by the FERC, withdrawal date set for June 30, 2020.
(April 10, 2020 – Westminster, Colo.) – The Delta-Montrose Electric Association (DMEA) will terminate its membership in Tri-State Generation and Transmission Association on June 30, 2020, subject to certain conditions and approvals, including approval from the Federal Energy Regulatory Commission.
The parties have entered into a membership withdrawal agreement in accordance with a July 2019 settlement agreement. As part of the membership withdrawal agreement, DMEA or a third-party will pay $88.5 million to Tri-State, and in addition, forfeit $48 million in patronage capital. The agreement was the product of a negotiated settlement and is unique to DMEA.
“The withdrawal agreement aligns with our settlement and is a negotiated agreement unique to DMEA,” said Duane Highley, chief executive officer of Tri-State.
The agreement provides for the purchase of certain assets and facilities by DMEA from Tri-State; termination of certain existing contracts between DMEA and Tri-State; and assignment by Tri-State of its wholesale electric service contract to a third-party provider. The $88.5 million includes $26 million for the purchase of certain assets and facilities. Tri-State and DMEA also will enter into certain new contracts for the continued operation of transmission and telecommunications systems.
The forfeiture of the current balance of DMEA’s patronage capital, including that for 2019, is not included in the payment. All Tri-State members have a patronage capital account, which represents each member’s ownership in the Westminster, Colo.-based generation and transmission association.
The withdrawal date is subject to the satisfaction or waiver of certain conditions and receipt of certain approvals.
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.
Lee Boughey, 303-254-3555, email@example.com
Mark Stutz, 303-254-3183, firstname.lastname@example.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.