Power wholesaler Tri-State Generation and Transmission Association – a group of 43 US electric co-ops – has agreed to allow Delta-Montrose Electric Association to depart – with terms that will cost its former member $136.5m (£108m).
Tri-State has been embroiled in disputes with several of its members over the rules of departure, as co-ops look to leave contracts with the wholesale supplier to pursue their own renewable sources of energy.
Members and campaigners have for some time been critical of Tri-State’s use of fossil sources of energy, although it has recently declared plans to move to renewable generation.
If regulators approve the deal, Delta-Montrose will give up a combination of equipment, assets and patronage capital to leave the power wholesaler at the end of June.
Tri-State said recently that it is implementing a new formula for calculating the cost for co-ops to leave their contracts early, but this exit agreement was not developed according to that formula.
“The withdrawal agreement aligns with our settlement and is a negotiated agreement unique to DMEA,” said Tri-State CEO Duane Highley in a prepared statement.
Meanwhile, a Colorado judge on public utilities law was due to hold a teleconference yesterday (Tuesday) to discuss scheduling and other issues arising from efforts by two more co-ops, La Plata Electric Association and United Power, to leave Tri State contracts.
