MONTROSE, Colo. —July 22, 2019—Delta-Montrose Electric Association (DMEA) announced today that it will withdraw from membership in Tri-State Generation & Transmission Association, Inc. (Tri-State) effective May 1, 2020. The early withdrawal is part of a definitive settlement agreement between DMEA and Tri-State and resolves various longstanding legal disputes.
“DMEA is very pleased by this result, and is glad to have achieved a fair resolution,” said DMEA Board President, Bill Patterson. “We look forward to pivoting to a new era of power supply.” Following its exit from Tri-State, DMEA plans to partner with Guzman Energy, a Colorado-based regional power supplier delivering affordable, reliable, and clean energy. “We have an excellent partner in Guzman Energy,” Patterson stated, “and together we’re focused on providing rate stabilization and increased local generation to our member-owners.”
Tri-State and DMEA’s settlement agreement, filed Friday with the Colorado Public Utilities Commission (PUC), concludes a number of legal disputes between DMEA and its wholesale power supplier. The parties completed months of litigation and were set to begin a five-day PUC hearing in August. Over the past couple of weeks, DMEA and Tri-State were able to reach a settlement that includes a fair and reasonable exit charge, which DMEA has been seeking. Friday’s settlement dismisses that PUC proceeding as well as an Adams County district court action DMEA filed against Tri-State earlier this month.
Following the settlement, DMEA is moving toward putting aside differences with Tri-State, which have extended back for a number of years. “While the recent history between DMEA and Tri-State has been difficult, DMEA always looks forward, and we’re ready to start a new chapter,” said DMEA’s CEO, Jasen Bronec. “DMEA recognizes the importance of its continued partnership with Tri-State in various areas, and we know we will continue to rely upon Tri-State for safe and reliable transmission service.” Bronec acknowledged that the coming months “would be busy as DMEA and Tri-State work together toward an orderly separation and withdrawal.”
DMEA also acknowledged the broad support it had received from across the state in recent months. “DMEA sincerely thanks our members and employees, as well as elected officials and other interested parties from across the state for their unflagging support of DMEA’s pursuit of stabilized rates, development of diverse and low-cost local energy, and the creation of new local jobs. This is a big step for our cooperative, for our employees, and for our membership,” said DMEA Board President Patterson.