FERC Approves Transaction Allowing Delta Montrose to Exit Tri-State
The Federal Energy Regulatory Commission on June 9 approved a request by Tri-State Generation and Transmission Association Inc., a wholesale generation and transmission cooperative, to authorize the transfer of electric service contracts as part of a 2019 agreement, allowing Delta-Montrose to exit Tri-State on June 30.
The cooperative will assign its wholesale electric service contracts with Delta-Montrose Electric Association to Guzman Energy LLC. Under a membership agreement executed in April, Delta-Montrose will pay $88.5 million to Tri-State and forfeit $48 million in patronage capital to terminate its membership.
Tri-State became regulated as a public utility under the Federal Power Act on Sep. 3, 2019 when it admitted MIECO Inc., a non-governmental and non-electric cooperative entity, as a new member/owner of Tri-State. On March 20, 2020, the commission granted Tri-State’s market-based rate authorization. Tri-State supplies 46 members, including 43 utility electric distribution cooperatives and public power districts in four states.