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Independent regulatory commissions

Tri-State Generation and Transmission Association Seeks Interim Rate Implementation for Settlement Rates

Strategic Insights

— 2 min read

Tri-State Generation and Transmission Association, Inc. has filed a joint motion with Arkansas River Power Authority, Mountain Parks Electric, Inc., and Delta-Montrose Electric Association, Inc. to implement settlement rates on an interim basis in response to the Chief Administrative Law Judge's denial of their September 4, 2025 joint motion for interim rates. The motion seeks to place the rates agreed upon in the Offer of Settlement into effect on an interim basis, pending the Commission's review and acceptance or approval of the Offer of Settlement.

Key Takeaways:

  • The joint motion for interim rates was denied without prejudice by the Chief Administrative Law Judge on September 9, 2025, seeking additional support to establish the rate reduction resulting from the settlement.
  • The Offer of Settlement resolves all issues set for hearing in the Hearing Order and reflects a reduction in the 2025 Rate Year Annual Update rates under the Tri-State formula rate.
  • Granting the motion will allow Tri-State to incorporate the rates under the Offer of Settlement into its annual true-up process and update its formula rate, which goes into effect approximately seven weeks from the date of the filing.
  • The rates calculated under the Offer of Settlement will result in a reduction of approximately 1.9% as compared to Tri-State's as-filed template rate, with a total reduction of $4,212,047.
  • The change summary tab of Appendix 1 shows that the settlement's exclusion of Customer Service & Information and Customer Sales expense from the template rate is largely responsible for the settlement's rate reduction, representing $3,591,539 of the reduction.
  • Other modifications to Notes Payable Interest, Total Proprietary Capital, and other long-term debt and capital structure modifications account for the remaining $620,509 in the rate reduction.

Statistics:

  • The 2025 Rate Year Annual Update rates under the Tri-State formula rate will be reduced by approximately 1.9%.
  • The total reduction in rates is $4,212,047.
  • The settlement's exclusion of Customer Service & Information and Customer Sales expense from the template rate is largely responsible for the settlement's rate reduction, representing $3,591,539 of the reduction.
  • The remaining $620,509 in the rate reduction comes from modifications to Notes Payable Interest, Total Proprietary Capital, and other long-term debt and capital structure modifications.

Sources:

  • Order Denying Without Prejudice Motion for Interim Rates, Docket No. ER25-452-001 (2025)
  • Tri-State Generation & Transmission Ass'n, Inc., Open Access Transmission Tariff, attach. 2 (Template) (14.0.0)
  • Tri-State Generation & Transmission Ass'n, Inc., Open Access Transmission Tariff, attach. 1 (Protocols), § 1 (2.0.0)
  • 16 U.S.C. § 824d
  • 18 C.F.R. § 35.13 (2024)
  • 18 C.F.R. § 35.1(e)
  • 18 C.F.R. § 375.307(a)(1)(iv)

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