Tri-State claims that co-ops "have intervened on Tri-State's behalf at the PUC” don’t add up1/24/2019
By Joe Smyth | joe@cleancooperative.com | @joesmyth
Last week, a majority of Colorado state legislators urged the Colorado Public Utilities Commission (PUC) to determine the amount that Delta-Montrose Electric Association must pay to exit from Tri-State Generation and Transmission Association.
In response to the legislators’ letter, Tri-State has sought to highlight the support from its member co-ops for its argument that the Colorado PUC does not have jurisdiction in the dispute. The Denver Post reported: Tri-State spokesman Lee Boughey said in an email Friday that 34 of its member cooperatives have filed statements supporting the position that the state utilities commission doesn’t have jurisdiction in the contract dispute. The Grand Junction Daily Sentinel reported: Tri-State spokesman Lee Boughey said that 34 of Tri-State's members, or 80 percent, have made filings with the PUC in support of its position that the DMEA issue is not up to the PUC to decide. "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. We would encourage legislators to reach out to the co-ops in their districts for feedback when they're asked about these kinds of matters," Boughey said. But an analysis of the filings submitted by co-ops to the Colorado PUC shows that Tri-State’s claims are false. And requests for comment from the general managers of ten co-ops in Colorado returned only two responses - both disputing that they “have intervened on Tri-State behalf.”
Most co-ops have not argued that the Colorado Public Utilities Commission “doesn’t have jurisdiction”
Most of the co-ops that have sought to intervene in the case were signed on to a joint petition, including six co-ops in Wyoming (High West Energy, Wyrulec Company, Big Horn Rural Electrical Company, Carbon Power & Light, Garland Light & Power, and Wheatland Rural Electric), nine co-ops in New Mexico (Otero County Electric, Central New Mexico Cooperative, Mora-San Miguel Electric, Continental Divide Electric, Socorro Electric, Sierra Electric, Southwestern Electric, Columbus Electric, and Northern Rio Arriba Electric), and five co-ops in Colorado (Southeast Colorado Power, K.C. Electric, Gunnison County Electric, San Isabel Electric, and Morgan County Rural Electric). Another co-op in Colorado, San Miguel Power Association, was originally listed on that joint petition, but was later removed in an amended version. San Miguel Power Association’s general manager did not respond to requests for comment about why the co-op was removed from the joint petition. That joint petition with 20 co-ops argues that “DMEA should resolve its contractual dispute with Tri-State in a court of law,” but does not make the more controversial claim that the Colorado PUC “doesn’t have jurisdiction in the contract dispute,” as Tri-State claimed 34 co-ops have said.
A similar petition filed by five co-ops and public power districts in Nebraska (Wheat Belt Public Power District, Midwest Electric Cooperative Corporation, Roosevelt Public Power District, Chimney Rock Public Power District, and Panhandle Rural Electric) includes nearly identical language, and also does not claim that the Colorado PUC doesn’t have jurisdiction in the case.
It’s also unclear how many co-ops agree with Tri-State’s claim that by signing on to these petitions, they “have intervened on Tri-State's behalf at the PUC.” Gunnison County Electric General Manager Mike McBride said in an email: “GCEA’s intervention was not “on Tri-State’s behalf” but rather on behalf of GCEA’s members who will bear the cost and consequences of the decision.” “We support DMEA’s right to negotiate a buyout that is fair both to DMEA and the other 42 members and to have an appropriate party assist in the process if necessary.” The general managers of Southeast Colorado Power, K.C. Electric, San Isabel Electric, and Morgan County Rural Electric did not respond to requests for comment.
Five co-ops argue that the Colorado PUC doesn’t have jurisdiction, but only two of those have sought to intervene in the case
Three co-ops in Colorado were listed on a separate filing submitted to the Colorado PUC: Mountain Parks Electric, Highline Electric, and Y-W Electric. That filing argues that "the Commission does not have jurisdiction to resolve matters related to an exit fee." However, unlike the other co-ops, those three co-ops have not sought to intervene in the case, but instead are requesting to participate as “Amicus Curiae,” to offer an opinion without becoming a party to the case. Mountain Parks Electric General Manager Tom Sifers said in an email: “Mountain Parks Electric (MPE) did not intervene in the DMEA vs. Tri-State (TSG&T) matter. MPE filed a motion for permission to file an Amicus Curiae. The reason that MPE made this filing is because it believes that the proper forum for this contractual dispute is in civil court, not the PUC.” In another email, Sifers said: “To reiterate the basis of our participation in this matter, MPE is requesting to participate as Amicus Curiae to offer legal argument regarding the jurisdiction of the PUC to hear this matter. MPE is not supporting or opposing DMEA or Tri-State in the resolution of their dispute regarding the buy-out number.” The general managers of Highline Electric and Y-W Electric did not respond to requests for comment. Mountain View Electric did seek to intervene in the case, and its filing suggests that it agrees with Tri-State that the Colorado PUC doesn't have jurisdiction in this case:
San Luis Valley Electric also sought to intervene in the case, and used nearly identical language:
Tri-State’s largest member co-op argues that Colorado PUC has jurisdiction to set an exit fee
United Power has also sought to intervene in the case, but disagreed with Tri-State, stating: "United Power contends that the Commission has jurisdiction to set a just and reasonable exit charge from Tri-State."
United Power is the largest member co-op of Tri-State, and is seeking to change Tri-State's bylaws to give more flexibility for co-ops to purchase power from cheaper sources. In its meetings with other co-ops about the proposed bylaw changes, United Power focused on how Tri-State's policies are turning away large customers seeking access to renewable energy and lower rates.
La Plata Electric sought to intervene in the case on January 24, and its submission also notes that "LPEA supports the position of DMEA with respect to the jurisdiction of this Commission over Tri-State in this particular matter. LPEA also supports the determination by this Commission of the question whether Tri-State's exit charges are unjust and unreasonable, and whether the exit charges are discriminatory." Poudre Valley Rural Electric Association also sought to intervene in the case, but did not make a claim about the Colorado PUC’s jurisdiction in the case. White River Electric’s petition to intervene also made no claim about the Colorado PUC’s jurisdiction. The general managers of Poudre Valley Rural Electric Association and White River Electric did not respond to requests for comment about whether they had “intervened on Tri-State's behalf at the PUC.”
Tri-State’s claim that 34 co-ops say the Colorado PUC “doesn’t have jurisdiction” to set an exit fee is not supported by the facts
In summary, analysis of the filings submitted by electric cooperatives to the Colorado PUC in the DMEA vs. Tri-State case (docket 18F-0866E) shows: Twenty co-ops in Wyoming, New Mexico, and Colorado have sought to intervene in a joint petition, but do not argue that the Colorado PUC “doesn’t have jurisdiction in the contract dispute.” One co-op in Colorado was removed from that joint petition, but has not explained why. Five co-ops in Nebraska submitted a similar joint petition, which also does not argue that the Colorado PUC doesn't have jurisdiction in the case. Two co-ops sought to intervene in the case, and agreed with Delta-Montrose Electric that the Colorado PUC has jurisdiction in the case. Two co-ops sought to intervene in the case, but do not make a claim in their filings about the Colorado PUC’s jurisdiction in the case. Three co-ops in Colorado argue that the PUC does not have jurisdiction in this case, but have not sought to intervene in the case, requesting to participate as Amicus Curiae instead. Two co-ops argue that the PUC does not have jurisdiction in this case, and have sought to intervene in the case - far fewer than the 34 co-ops that Tri-State claimed. Two general managers of co-ops in Colorado responded to requests for comment, and both disputed that their co-ops had “intervened on Tri-State’s behalf.” Eight general managers of co-ops in Colorado did not respond to requests for comment. Note: This piece was updated on January 25 to include the submission from La Plata Electric
Further reading:
Colorado state legislators urge Public Utilities Commission to determine Tri-State exit charge 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 Comments are closed.
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