Tri-State board of directors approves FERC settlement offer; power supply cooperative to immediately reduce wholesale rates to members by 2%, with another 2% reduction in 2022
- Settlement advances Responsible Energy Plan goal for lower wholesale power rates.
- With FERC approval, wholesale rate reduction will be retroactive to March 1, 2021.
(April 30, 2021 – Westminster, Colo.) – The Tri-State Board of Directors, which includes a representative from each of the power supply cooperative’s utility members, approved a proposed settlement of its wholesale rate and contract filings made with the Federal Energy Regulatory Commission (FERC). Under the terms of the settlement, which requires FERC approval, Tri-State will immediately reduce its wholesale power rates 2%, followed by another 2% wholesale rate reduction in 2022.
The board’s action advances two goals identified in Tri-State’s Responsible Energy Plan including reducing wholesale rates for its utility members and ensuring each member has a voice in Tri-State’s rate regulation by establishing FERC as its exclusive, independent wholesale rate regulator.
“Our Responsible Energy Plan makes Tri-State even more competitive for our members, with a cleaner power supply, more power supply options and lower wholesale rates,” said Tri-State CEO Duane Highley. “As we pursue ways to lower wholesale rates, all of our members across four states have had the opportunity to participate in the FERC’s rate regulation process.”
Tri-State’s proposed settlement will be filed with the FERC and, if approved, will go into effect retroactively to March 1, 2021. The additional 2% wholesale rate decrease would go into effect in March 2022, and Tri-State would have a moratorium on any rate increases until May 31, 2023.
“Tri-State is deeply appreciative of the time and involvement of our members, FERC staff, and stakeholders in the settlement process,” said Highley. “As a cooperative, we are committed to continuing to work with our members to consider other rate-related issues before our next FERC rate filing.”
Over the past several years, Tri-State’s members worked together in rate design and contract committees to develop recommendations that were accepted by the Tri-State board. In 2019 and 2020, Tri-State filed with FERC its wholesale rate, wholesale electric service contracts, and board policies related to the terms for wholesale power service to its utility members. These filings were accepted by FERC, subject to refund, and were set for settlement and hearing procedures. The settlement, if approved by FERC, would avoid further hearings on nearly all of the issues designated for further proceedings.
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.