Tri-State refutes claims in United Power’s deception lawsuit

WESTMINSTER and BRIGHTON — Power wholesaler Tri-State Generation and Transmission Association Inc. hit back at a lawsuit from United Power Inc., its largest member, after the latter alleged a yearslong conspiracy to keep it from exiting the association of local electric providers.

In a filing in Adams County District Court Friday, the Westminster-based Tri-State admitted it did engage in negotiations with three non-utility providers for admittance into the power wholesaler’s network partially to help it gain federal jurisdiction, but broadly denied United’s other claims.

Tri-State said in counterclaims that it offered a preliminary buyout figure that was yet to be approved by its board, and that it spent part of 2018 and the latter half of 2019 developing a way to allow members to leave the wholesaler without causing significant harm to the remaining utilities. During that period, United pushed to exit the group without fulfilling its contractual duties, Tri-State alleges.

In early May, the Brighton-based United filed suit alleging that Tri-State illegally granted membership to the roster of 43 members so it could become subject to the Federal Energy Regulatory Commission instead of the Colorado Public Utilities Commission.

United Power and Durango-based La Plata Electric Association Inc. have been battling with Tri-State for months within the CPUC to force the latter to provide an exit fee, which stems from ongoing complaints over the speed in which Tri-State has phased out coal and fossil fuels for renewable energy sources.

Federal regulators declared limited jurisdiction over Tri-State in March, potentially overruling any Colorado decisions and prolonging any rulings from Washington that would require Tri-State to allow United and LPEA to leave. However, it left the door open for Colorado regulators to declare the inclusion of non-utility providers in the group a violation of Colorado law.

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