Colorado state legislators urge Public Utilities Commission to determine Tri-State exit charge

By Joe Smyth | joe@cleancooperative.com | @joesmyth

A majority of Colorado’s state legislators are urging the Colorado Public Utilities (PUC) to determine the amount that Delta-Montrose Electric Association must pay to exit from Tri-State Generation and Transmission Association.

In a letter this week to Colorado PUC Chairman Jeff Ackermann and Commissioner Frances Koncilja, 17 Colorado State Senators and 35 State Representatives wrote:

We submit these comments in support of the filing last month by Delta-Montrose Electric Association (DMEA) asking the Colorado Public Utilities Commission to set a just, reasonable, and nondiscriminatory charge for DMEA’s exit from Tri-State.

As members of the Colorado General Assembly who care about rural economic development and allowing all Coloradans access to less expensive power from local and diverse generation sources, we urge the Commission to strongly consider exercising its jurisdiction under Colorado law and setting an exit charge fair to both DMEA and Tri-State’s remaining members.

The letter was signed by each of the state representatives and state senators that represent members of Delta-Montrose Electric Association, including Republican State Senator Don Coram, Democratic State Senator Kerry Donovan, Republican State Representatives Marc Catlin and Matt Soper, and Democratic State Representative Julie McCluskie.

Top state legislative leaders also signed the letter, including Speaker of the House KC Becker, Senate President Leroy Garcia, House Majority Leader Alec Garnett, Senate Majority Leader Steve Fenberg, Senate Minority Whip Ray Scott, and others.

Delta-Montrose Electric Association CEO Jason Bronec said in a statement:

“Tri-State has made it clear that they would like to take our case away from the Public Utilities Commission, which is charged with protecting the public interest, and that is unfortunate. While Tri-State was announcing its lawsuit against us, our request to the PUC for a fair exit charge received a high-profile endorsement. In a letter written to the Public Utilities Commission, more than 50 current state legislators asked the PUC to "strongly consider exercising its jurisdiction under Colorado law and setting an exit charge fair to both DMEA and Tri-State's remaining members.

"This bipartisan letter was signed by leadership in both the House and Senate, and included all of our local legislators. We sincerely appreciate the legislator’s input and think it shows the level of support we have in making sure rural Coloradans have access to less expensive and more diverse local power generation.”

Last month, the PUC ordered Tri-State to “satisfy or answer” DMEA’s complaint. Tri-State responded to the PUC this week by seeking to dismiss the complaint, and launching a lawsuit. The Denver Post reported:

Tri-State filed a complaint in Adams County District Court on Tuesday, asking the court to clarify the Delta-Montrose Electric Association’s obligations under its contract with Tri-State. The complaint also asks the court to determine that the Colorado Public Utilities Commission doesn’t have the authority to intervene in the dispute between Tri-State and Delta-Montrose.

In response to the legislators’ letter, Tri-State senior manager for communications and public affairs Lee Boughey told the Grand Junction Daily Sentinel that 34 of Tri-State’s member co-ops supported Tri-State in its dispute with DMEA, saying:

"Legislators should be aware that the vast majority of our members disagree with DMEA, and in fact have intervened on Tri-State's behalf at the PUC.”

But the legislators’ letter argues that the Colorado PUC’s jurisdiction is clear:

We believe Articles 1 to 7 of Title 40 of the Colorado Revised Statutes apply to Tri-State as a generation and transmission cooperative corporation. The law says public utilities, like Tri-State, cannot demand unjust, unreasonable, or discriminatory charges. If they do, then the Commission may prescribe just and reasonable ones. DMEA’s complaint says Tri-State refuses to give a just, reasonable, and nondiscriminatory exit charge, depriving rural Coloradans of access to less expensive and more diverse local generation than can serve as a catalyst for economic development on the Western Slope.

Here's the full letter from state legislators to the Colorado Public Utilities Commission:

Page 1 of Colorado Legislators Letter to PUC Regarding Tri State Exit Fee

Contributed to DocumentCloud by Joe Smyth of Clean Cooperative • View document or read text

​February 6 update: A group of three state senators and seven state representatives wrote to the Colorado PUC on February 4 to add their names to the January 14 letter:

That brings the total to 20 state senators and 42 state representatives that have written to the Colorado PUC in support of Delta-Montrose Electric. 

The second letter from state legislators to the Colorado PUC follows a January 28 letter from Tri-State in response to the original letter from 52 state legislators, describing the conflict as a "private contract dispute."

Further Reading:

Denver Post: Tri-State’s contentious contract dispute with Western Slope cooperative ends up in court 

Grand Junction Daily Sentinel: Lawmakers back utility's push to exit its contract

Colorado Public Utilities Commission orders Tri-State to "satisfy or answer" exit charge complaint from Delta Montrose Electric

Delta Montrose Electric members vote for new financing options, supporting a potential buyout of Tri-State contract

​Delta Montrose Electric seeks new financing options to end contract with Tri-State