At our May Board Meeting, the Board of Directors voted to exercise our right to terminate our contract with Tri-State Generation and Transmission, Inc. (our wholesale power supplier) by giving the required two-year notice of our intention to exit our membership in Tri-State. This was not an easy decision and only came after months of intense investigation and discussion. But the decision came down to feeling we have other options to lower our cost of purchased power, and being able to lower those costs will lead to lower rates for our members.
This decision is bittersweet as Midwest was a founding member of Tri-State in 1952. We have a good working relationship with Tri-State formed over nearly 75 years. Tri-State’s Board and Staff have been good to work with, and I appreciate their efforts to provide the best service that they can for their members.
But our Board felt that we need to look into other options for our power supply that are less expensive and projected to be less expensive in the foreseeable future. The cost of purchasing power that we provide to our members is 65-70% of Midwest’s total expenses in any given year. As we believe we have options that would allow us to significantly reduce that cost, we feel it is in the best interest of our membership to explore those options and find the best solution for our members.
Tri-State’s process for a member to terminate their contract requires a two-year notice that allows time for all the new agreements to be constructed, paperwork filed, and other associated transactions to be finalized. Midwest gave notice that we would exit Tri-State effective on June 1, 2028. That timing is important because the summer months are where our energy use is the highest and where our power bills are the biggest. Being able to switch power suppliers ahead of those summer peaks means Midwest will see savings immediately.
Midwest’s notice to exit Tri-State means that all six Tri-State members headquartered in Nebraska are planning to exit to a new power supplier. We have already had many discussions about what our options may be, and are looking for ways to help each other find the best solution. We don’t all have to make the same choice, but I believe having others to work with will also help Midwest end up in the best position for our future power needs.
Jayson Bishop
*Midwest Electric is an equal opportunity provider and employer.*