Brighton, CO – On Dec. 19, 2023, the Federal Energy Regulatory Commission (FERC) issued a Final Decision that affirms in part, reverses in part, modifies in part, and clarifies in part an Initial Decision issued by a FERC administrative law judge in September 2022 addressing contract termination methodology and procedures for members exiting from Tri-State Generation and Transmission Association, Inc. (Tri-State). This is an important next step in United Power’s path to exit Tri-State by May 1, 2024.
“While we are still reviewing FERC’s order, we are pleased to see that it supports a variation of the balance sheet approach methodology we proposed versus a contract damages or lost revenues approach,” said Mark A. Gabriel, President and CEO of United Power.
In a Dec. 8 settlement with Tri-State, both utilities agreed to cooperate in good faith to provide the information necessary to calculate the amount of the contract termination payment. “To that end, we intend to work together to determine the appropriate adjustments and offsets so that Tri-State can timely file its compliance filing, and we can file an executed withdrawal agreement. United Power is focused on efforts to ensure a positive future for our members,” Gabriel added.
United Power has taken steps to resolve disputes with Tri-State and to reach areas of alignment and agreement to timely facilitate its departure. Most recently, United Power dismissed state court litigation against Tri-State, and filed motions to withdraw its appeal and intervention in two separate matters before the DC Circuit Court. In September, United Power made an immediate payment to Tri-State for Reserved Issue 3 in the Stated Rate proceeding consistent with the guidance in FERC’s final order.