A lawsuit has been filed by La Plata Electric Association, based in Durango, against Tri-State Generation and Transmission, alleging breach of contract and deceitful practices. The electric cooperative seeks to terminate its contract with Tri-State or receive compensation for damages incurred. This legal action comes amid disputes over rates, renewable energy initiatives, and the desire for more local control over power generation.
Tri-State, a wholesale power provider, has faced criticism from several rural electric cooperatives, including La Plata Electric Association and United Power, for allegedly failing to offer fair terms for ending their contracts and preventing them from producing more of their own electricity. The lawsuit by LPEA accuses Tri-State of causing millions of dollars in damages due to these breaches of contract.
In response, Tri-State stated that the lawsuit is an attack on its cooperative members and that it will vigorously defend itself against the allegations. The company also emphasized its commitment to advancing greater contract and power supply flexibility. However, LPEA’s board chairman, Ted Compton, expressed regret that legal action was necessary to prompt the engagement and collaboration they have been seeking.
Tri-State provides wholesale power to 42 electric associations in Colorado, Wyoming, Nebraska, and New Mexico. The ongoing disputes with some of its members have revolved around rates, reliance on coal, and limitations on local power generation. Notably, the Delta-Montrose Electric Association in Montrose and the Kit Carson Electric Cooperative in Taos, N.M., paid substantial amounts to leave Tri-State in recent years.
Despite this legal action, Tri-State has revealed plans to accelerate its transition to clean energy and increase its renewable energy resources, signaling a shift away from coal. However, LPEA’s lawsuit suggests that the cooperative believes Tri-State’s actions are not in the best interest of its members.
In a similar vein, United Power has also challenged Tri-State’s practices and filed a lawsuit in 2020. However, both parties have recently announced an agreement to settle the lawsuit, indicating a potential resolution to their disputes.
Overall, the legal action taken by the La Plata Electric Association against Tri-State Generation and Transmission highlights the ongoing tension between rural electric cooperatives and power suppliers over contract terms and the transition to cleaner energy sources. These disputes reflect the broader shift within the industry towards renewable energy initiatives and greater local control over power generation.
