United Power and La Plata Electric ask Colorado Public Utilities Commission to determine Tri-State exit fee

By Joe Smyth | @joesmyth

Two electric cooperatives filed formal complaints with the Colorado Public Utilities Commission this week, requesting that the Commission determine the price for them to buy out of their contracts with Tri-State Generation and Transmission Association. The disputes could have major implications for the coal-heavy power supplier, and reveal problems with the governance system of Tri-State and other generation and transmission associations, which sell wholesale power to hundreds of electric cooperatives across the United States.

The United Power and La Plata Electric Association requests’ to the Colorado PUC follow Delta-Montrose Electric Association’s successful effort to end its membership with Tri-State; all three member cooperatives have said that they want to build more local renewable energy than Tri-State allows and purchase cheaper wholesale power. Tri-State settled with Delta-Montrose Electric in July, after the Colorado PUC determined that it had jurisdiction to determine a fair exit fee, and Commissioner Frances Koncilja raised the possibility of public hearings to question Tri-State’s executives about the company’s conduct.

If United Power and La Plata Electric stop purchasing wholesale power from Tri-State, it would have a much larger impact on Tri-State than the departure of Delta-Montrose Electric. While Delta-Montrose accounts for 5% of Tri-State’s electricity sales to member co-ops, La Plata Electric accounts for 6% and United Power accounts for 15% – Tri-State’s largest member by far.

Colorado PUC ordered Tri-State to respond to the complaints, and set hearings for January 21 and 22, 2020.

Read More