According to a press release from Tri-State Generation and Transmission, the electricity supplier of Socorro Electric Cooperative, on August 2, the Federal Energy Regulatory Commission approved a settlement in the first major tariff case filed by Tri-State since the electricity supplier became subject to FERC. jurisdiction in September 2019.
The uncontested settlement addresses key issues with the regulatory filings Tri-State filed in late 2019 and 2020 regarding its wholesale electricity service rates and terms to its 42 member utilities in Colorado, Nebraska, New Mexico and of Wyoming.
The settlement with FERC resulted in an immediate reduction in Tri-State’s current wholesale rate, with a total rate decrease of four percent by March 1 of next year. Tri-State has already implemented a 2% rate cut, which took effect on March 1, 2021, and promises another 2% cut on March 1, 22.
“We are delighted with this outcome and the FERC’s approval of the settlement, which provides both a significant reduction in wholesale rates and rate certainty for our member utilities,” said Duane Highley, CEO of Tri-State. “As a cooperative, Tri-State is working with its members and taking bold steps today to create a bright future and a clean network. This regulation is an important step towards this vision.
Jimmy Capps, director of communications and public affairs for the Socorro Co-op, said SEC clients began to benefit from this rate reduction with their June 2021 billing statements through the “Cost Adjustment” factor. power supply ”which fluctuates monthly based on changes in its Tri-State Power cost.
The overall annual savings of $ 300,000 for the SEC are now included in the monthly electricity cost adjustment calculation on future bills for all SEC members.
“The electricity cost adjustment reflects the monthly change in the SEC’s wholesale cost of electricity relative to the cost of electricity at the time the current tariffs were designed and approved by the Public Regulatory Commission. in 2011, he said.
According to Capps, the adjustment changes from month to month due to the different types of resources used to generate electricity and changes in the amount of electrical demand placed on the entire generation system.
“For example, in 2020, the SEC’s monthly electricity cost fluctuated from a low of $ 0.073 / kWh in January to a high of $ 0.083 / kWh in September due to higher load demand from air conditioning, “Capps said, noting that Tri-State has not increased its wholesale tariff to SEC in the past 5 years and these cuts are part of their goal of reducing tariffs, totaling eight percent by 2024 .
“While the SEC already has one of the lowest average residential rates among electric co-ops in New Mexico,” he said. “This drop reflects the commitment Tri-State has made to affordability at a time when the prices of most other ‘life essentials’ continue to rise. “