The Denver Post

Tri-State, electric cooperativ­e announce plans to settle fight

- By Judith Kohler Judith Kohler: 303-954-1942, jkohler@denverpost.com or @JudithKohl­er

As state regulators were set Monday to speed up a hearing on a contract dispute between wholesale power provider Tri-State and one of its Colorado members, the two said they had agreed to settle the matter.

Tri-State Generation and Transmissi­on and DeltaMontr­ose Electric Associatio­n wrote in a filing to the Colorado Public Utilities Commission that they were seeking approval of the proposal from their respective boards and would submit something Friday to the PUC.

Even though a settlement would clear the conflict off the PUC’s docket, one of the commission­ers voiced concern about the other 17 electric associatio­ns in Colorado that get their power from Tri-State.

Commission­er Frances Koncilja said because TriState has asked the Federal Energy Regulatory Commission to oversee its rates, the utility’s members in Colorado and other states will have to take future complaints to Washington, D.C.

It was last week’s vote by the Tri-State board of directors to switch to federal regulation that moved Delta-Montrose to ask the PUC to move up a hearing on its attempt to end its contract with the regional utility.

Even if the PUC had decided in favor of DeltaMontr­ose, it’s possible that once Tri-State is regulated by the Federal Energy Regulatory Commission, it could argue that Colorado’s decision shouldn’t apply, a lawyer for the utility conceded during a hearing last week.

The dispute between TriState and Delta-Montrose is the latest to crop between the utility and its member cooperativ­es.

Delta-Montrose asked the PUC to intervene because it said the exit fee Tri-State wanted was unreasonab­le and discrimina­tory.

In 2016, the Kit Carson Electric Associatio­n paid $37 million to break its contract with Tri-State.

Kit Carson, like DeltaMontr­ose, complained that Tri-State’s rates are too high and isn’t moving quickly enough to reduce its use of coal and increase the use of renewable energy.

The La Plata County Electric Associatio­n in Durango has said it is exploring whether it could buy power for less from other sources.

Tri-State says a third of its electricit­y is produced by renewable energy.

Tri-State is a not-forprofit wholesale power provider with a total of 43 member cooperativ­es in Colorado, Wyoming, Nebraska and New Mexico. Now, the board, elected by member associatio­ns, approves the electric rates.

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