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STATE OF COLORADO
DENVER

July3,2019

Mr. Duane D. Highley
Chief Executive OffiCer

Tri-State Generation Transmission Association, Inc.
llOO 116th Ave, Westminster, CO 80234

Mr. Rick Gordon

Chairman of the Board 
Tri-State Generation Transmission Ass?n, Inc.
1100 116th Ave, Westminster, CO 80234

Re: Tri-State and FERC Regulation
Dear Mr. l?lighley and Mr. Gordon:

We understand that Tri-State Generation and Transmission Association, Inc. (Tn-State) has a
propOsal to voluntarily have rates and charges subjected to general Federal Energy Regulatory
Commission (FERC) jurisdiction. Tri-State?s plan, unveiled just weeks ago and slated for a
Board vote this month, has Tri-State naming a new FERC?regulated entity as one of its member-
owners. A decision of this magnitude requires careful deliberation and extremely thorough
consideration of the impacts to member?owners and the customers they serve.

Just months ago, the Colorado General Assembly worked closely with Tri?State and other
stakeholders on Senate Bill 19-236, a historic and important piece of energy legislation designed
to move our state energy policy forward in a cost~effective and environmentally-conscious
manner. Among other things, this legislation was a collaborative process meant to ensure the
Colorado Public Utilities Commission (PUC) oversight of key aspects of Tri-State?s resource
planning. However, Tri?State did not inform us that during these discussions it was
simultaneously planning to implement changes that would transition regulatory authority to
FERC, thereby potentially undermining critical parts of the very resource planning oversight it
was negotiating. Given the connection between rates and resource planning, we are concerned
that Tri-State was not more transparent about the possibility of transitioning to FERC oversight
during this negotiation.

We need to better understand the potential of Tri-State?s plan to remove its rural membermowners
from the protections of Colorado law and deprive entities like the PUC and General Assembly of
their respective roles in ensuring Coloradans pay just, reasonable, and nondiscriminatory rates.

 

With these concerns in mind, we strongly urge Tri-State to delay the vote of the Board for
several weeks in order to meaningfully review the consequences that this impactul decision
will have for Colorado ratepayers. As you may know, the General Assembly has convened
an Interim Energy Legislation Review Committee this year, and we welcome the
opportunity to study this issue to better understand and evaluate the interests of affected
parties. Tri?State has a responsibility to properly engage with member?owners and other
stakeholders charged with protecting the public interest to effectively evaluate the consequences
of this decision before a vote is taken. Further, given the intent of Senate Bill l9~236 and the
potential impacts of Tri?State?s actions on this intent, the General Assembly looks forward to
making clari?cations through legislative initiatives in the coming session focused on cooperative
governance, transparency, and accountability to the public interest.

Sincerely,

   

 

Serrate??esmipdent LeroWrcia

District 3

Senate Majority Leader Stephen Fenberg
Senate District 18

 

 

 

92111718 ?mirth

Chairwoman Faith Winter
Senate Energy and Transportation Committee
Senate District 24

(leafi?w

Chairman Chris Hansen

 

 

Interim Energy Legislation Review Committee

House District 6

 
    

?it,

 

Speaker of the House KC Becker
District 13



  

re?
and,

?t west 

 

 

HouseWMaj ority Leader Alec Garnett
House District 2 

 

 

Chairwoman Dominique Jackson
House Energy and Environment Committee
House District 42

cc Hon. Jared Polis, Governor of the State of Colorado
Hon. Philip Weiser, Attorney General of the State of Colorado