A dispute between Delta-Montrose Electric Association and Tri-State Transmission and Generation, Southwest Colorado’s wholesale electricity supplier, is less likely to shed light on how to leave a contract with Tri-State because the two groups have reached a settlement rather than go to court.
La Plata Electric Association is interested in buying out its contract with Tri-State, in part, because the wholesaler caps how much renewable power LPEA can purchase from outside sources, limiting LPEA’s access to renewable power.
LPEA officials were watching the case between DMEA and Tri-State in hopes it might reveal how an exit fee from Tri-State is calculated.
DMEA and Tri-State filed paperwork this week with the Colorado Public Utilities Commission announcing they have reached a settlement in a dispute over how much DMEA should pay to exit its contract with Tri-State. However, the details of the settlement are subject to the approval of Tri-State’s and DMEA’s board.
More information about the settlement is expected to be available through PUC filings at the end of the week.
Both Tri-State and DMEA representatives declined to comment for this story.
It’s unknown whether details of the settlement will be released, but LPEA officials are worried pertinent details as to how a buyout fee was determined will not be made public, LPEA’s board President Bob Lynch said.
“The concern is that it wouldn’t be very helpful,” he said, of the settlement.
If the case had been heard publicly at the PUC, it is more likely the case would have set precedent that would be valuable to LPEA, Lynch said.
Earlier this month, LPEA requested an estimate of how much it would cost to exit its contract with Tri-State from the wholesaler. Tri-State officials plan to visit LPEA in August to discuss the request, Lynch said. However, LPEA has not decided whether to pursue a buyout.
Tri-State’s board voted this month to pursue federal regulation of its rates. It’s a move that could increase the cost and lengthen the timeline of a buyout case.
mshinn@durangoherald.com