Tri-State members restless as legal challenge looms

    Tri-State Generation and Transmission Association — which serves 18 Colorado electricity cooperatives, including Highline Electric Association — is facing a membership crisis as Delta-Montrose Electric Association announced plans recently to litigate their exit from the group.
    The decision was the result of dissatisfaction with limits set on the amount of power that the association could purchase or generate outside of their contract. It also had to do with Tri-State’s reliance on coal-fired plants at a time when renewable energy generation is becoming less and less expensive.
    At the same time, other member co-ops are looking to amend bylaws to allow for more local generation, and some are considering buyouts. Kit Carson Electric Association left Tri-State for Guzman Energy in 2016 as part of a deal that included a $37 million buyout.
    As uncertainty swirls around the future of Tri-State and its four-state member base, HEA general manager Mark Farnsworth said it’s crucial their partner continue adapting to shifting needs among their clients.
    “I think it would be imperative and important for Tri-State to look into different business models,” he said. “What we see happening now is renewables are more of a part of the market, and things are changing.”
    Farnsworth said that, with the addition of an in-progress 1.5 megawatt solar array, the association will be generating 3.5 percent of its own power, all from renewable resources. Their Tri-State contract allows them to generate a maximum of 5 percent. For their part, Tri-State claims to generate 30 percent of their power from renewable resources, including hydroelectric, wind and solar.
    Farnsworth said the association hasn’t seen the same push for renewables among members that, in part, prompted the DMEA’s decision to leave Tri-State, although they have seen a rise in self-metered solar power.
    While HEA is interested in increasing the proportion of renewables in its power blend, Farnsworth said this will present logistical and contractual challenges.
    He also said that the company is concerned about rate hikes that could arise from the departure of additional members from Tri-State, especially if they walk away from buyout negotiations like DMEA.
    In any case, Farnsworth said he personally believes the disruption caused by falling renewable prices is just getting started.
    “I think the electrical co-op business model could change more in the next five years than the last 80 years.”

Holyoke Enterprise

970-854-2811 (Phone)

130 N Interocean Ave
PO Box 297
Holyoke CO 80734