September 22, 2021 Read More →

Tri-State modified exit fees draw mixed reviews from members

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Various utilities urged the Federal Energy Regulatory Commission to reject the Tri-State Generation and Transmission Association Inc.’s modified rules and procedures used to set its exit fees for departing members, while others said the changes marked a considerable improvement.

Tri-State proposed a modified contract termination payment, or CTP, procedure, drawing both criticism and praise from several of the cooperative’s member-owners, many of which submitted comments on Sept. 17 and 20 (EL21-75).

Several members demanded that FERC reject the modified procedure, investigate the existing and proposed formula calculation, and determine a just and reasonable methodology for calculating exit fees.

“Tri-State’s modified CTP methodology continues to be flawed because it is, in essence, a revenue protection mechanism for Tri-State, rather than a just and reasonable fee that would appropriately compensate Tri-State for its costs and obligations incurred to serve its members,” according to six Tri-State members, including the Northwest Rural Public Power District and the San Isabel Electric Association Inc.

However, others said the modified methodology includes reasonable procedures for those seeking such calculations before potentially terminating their wholesale electric service contracts with the cooperative.

[Ellie Potter]

More: Members praise, condemn Tri-State’s modified procedures for member exit fees

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