Statement on action filed by five members

Since 1952, Tri-State has served its member systems with a reliable, cost-based supply of electricity.  The association was founded by its members, including those members serving consumers in Nebraska, to collectively provide generation and transmission to meet the requirements of members.

“It’s unfortunate that five of the six Nebraska members systems have chosen to use the legal system to resolve a rate and contract issue among our membership,” said Ken Anderson, Tri-State’s executive vice president and general manager.  “Over the years, Tri-State’s members have made investments to serve Nebraska members’ growth and reliability needs.

“The wholesale rate set each year by Tri-State’s board of directors reflects the direct cost of service to meet members’ load requirements and the association’s financial goals policy,” said Anderson. “Tri-State’s wholesale rate is non-discriminatory, cost-based and competitive in the marketplace we serve.”

At its September meeting, Tri-State’s board of directors voted to have Tri-State’s rate schedule remain unchanged for 2010, with the average wholesale rate to its member co-ops holding steady at approximately 6.5 cents per kilowatt-hour for 2010.

“Each of our member systems pays the same rate for electricity,” said Anderson.  “In return, Tri-State provides significant value to our members, in not just the delivery of reliable and affordable power, but the delivery of innovative energy products and regulatory compliance.”

Tri-State’s 44 members serve vastly different geographic and socio-economic areas across four states. Each member’s resource needs, and the regional investments made to serve those needs, have differed over time.  Collectively, this diversity of membership contributes to a risk sharing strategy that is of value to all of the members and is a significant strength of the association.

“We believe all of our members continue to receive value, and contribute value, to the association, including the five Nebraska members, and that as a cooperative, we are stronger together than apart,” said Hub Thompson, chairman of Tri-State’s board of directors.

Based in Denver, Tri-State supplies wholesale power throughout a 250,000-square-mile service territory to 18 electric cooperatives in Colorado, 12 in New Mexico, eight in Wyoming and six in western Nebraska.  The 44 co-ops, in turn, provide electricity to 593,000 meters – which translates to a population of approximately 1.4 million end-use consumers.

Updated: September 29, 2009