United Power Files Complaint Against Tri-State In District Court Alleging They Violated Their Bylaws and State Statute to Admit Non-Utility Members

Brighton, CO – Today United Power filed a complaint in Adams County District Court, alleging that Tri-State Generation and Transmission violated Colorado State Statutes and their own Articles of Incorporation and bylaws to add a greenhouse, a cattle ranch, and a natural gas supplier to their membership. The addition of these non-utility entities allowed the power cooperative to seek oversight from the Federal Energy Regulatory Commission (FERC), temporarily suspending a year-long effort by United Power to establish a reasonable buyout cost to leave the cooperative. United Power has been battling their power supplier to receive a buyout number with the goal of providing lower cost power to its membership.

“It is our belief that a favorable ruling in District Court would force FERC to reconsider their decision to allow Tri-State to be FERC jurisdictional,” stated Bryant Robbins, acting CEO at United Power. “This would allow the Colorado Public Utilities Commission (CoPUC) to affirm the decision of Administrative Law Judge Robert Garvey who, on July 10, 2020, ruled that Tri-State had discriminated against United Power and adopted United Power’s approach for calculating a fair, reasonable, and non-discriminatory exit fee.”

Tri-State’s questionable legal maneuvers opened the door for it to bypass the CoPUC and brought the organization under regulation from FERC. Tri-State is anticipating that the move will allow it to avoid the buyout methodology that was initially accepted by the CoPUC. In a hearing last month, the CoPUC found that it did not have jurisdiction to decide whether Tri-State’s corporate maneuvers were legal, but it invited United Power to return once the issue had been decided.

“This announcement should come as no surprise to anyone, especially Tri-State. This filing and subsequent ruling should determine, once and for all, whether Tri-State is lawfully FERC regulated. We feel strongly that it will be determined that they are not,” stated Robbins. “It is our hope that the District Court will recognize the importance of a quick decision on this matter. We also remain hopeful that ongoing discussions with Tri-State on possible solutions to our issues will be productive.”

United Power is a member-owned, not-for-profit electric cooperative delivering electricity to more than 95,000 meters at homes, business, and farms in Colorado's north central front range. For more information about the cooperative, visit www.unitedpower.com or follow them on social media at facebook.com/unitedpower or twitter.com/unitedpowercoop.

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Member Choice Grants, introduced earlier this year, allowed United Power to provide support for causes and organizations members care about. We asked our members to nominate nonprofits in the co-op service territory they would like to see us support through three rounds of grant presentations in 2020. During this difficult year, our members recognized the needs of others and focused on organizations that met essential needs, such as food insecurity, mental health and positive recreation.

United Power is proud to announce the two nonprofits receiving $1,000 Member Choice Grants for the third and final round of presentations.

Pastor’s Pantry

Pastor’s Pantry, operating out of Whispering Pines Church, was founded in 2001 as a resource for anyone in need in Coal Creek Canyon. It provides both food and essential items, and is open every Thursday from 3 - 5 p.m. or by appointment.

Colorado Therapeutic Riding Center

CTRC offers more than a dozen equine-assisted classes for individuals with a broad range of behavioral, emotional and physical disabilities, and helps more than 500 riders each year. CTRC is currently celebrating its annual fundraiser, Paint the Pony.

Brighton, CO - Yesterday the Colorado Public Utilities Commission (CoPUC) dismissed without prejudice United Power and La Plata Electric’s complaint against Tri-State. The Commission acknowledged that the decision on whether Tri-State lawfully admitted the three non-utility partners, an action that allowed them to claim that the Federal Energy Regulatory Commission (FERC) had exclusive jurisdiction over their rates, was a corporate law matter and should be decided by the courts. In May United Power filed a case against Tri-State in Adams County courts asserting that Tri-State fraudulently induced United Power to champion a 2019 Bylaw amendment to permit partial requirement membership. The admission of three non-utility members allowed Tri-State to apply for oversight with FERC, effectively setting aside the months of work by the CoPUC and suspending the administrative law judge’s ruling that favored a buyout methodology developed by United Power.

“We know the PUC was put in an awkward position of having to rule on a corporate law decision,” stated interim CEO, Bryant Robbins. “We greatly appreciate the hard work of both the Commission and their staff. The need of having the District Court hear the case was not unexpected. We will continue to move forward in our efforts to lower the rates of the 97,000 meters that we serve.”

In November of 2019, United Power filed a complaint with the Colorado Public Utilities Commission (PUC) seeking a fair buyout charge. This summer, United Power received a favorable ruling from the Administrative Law Judge (ALJ) assigned by the PUC to hear the case. Then on August 28th, FERC reversed an earlier decision and determined they have sole jurisdiction over the exit fee matter, even while acknowledging that they have not determined that Tri-State’s proposed methodology represented a “just, reasonable and nondiscriminatory exit charge”.

“While we are disappointed that the commission is unable to rule on this issue, we believe our case in Adams County will show that the non-utility members were unlawfully added according to both State Statutes and their own bylaws,” stated Robbins.

United Power is a member-owned, not-for-profit electric cooperative delivering electricity to nearly 97,000 meters at homes, business, and farms in Colorado's north central front range. For more information about the cooperative, visit www.unitedpower.com or follow them on social media at facebook.com/unitedpower or twitter.com/unitedpowercoop.

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