Federal Regulators Reject Tri-State’s Large-Load Proposal
A major setback hit Tri-State Generation and Transmission Association in Colorado after the Federal Energy Regulatory Commission (FERC) rejected its proposed large-load tariff meant to serve the growing power demands of data centers.
FERC ruled that the proposal overstepped its jurisdiction, explaining that Tri-State’s tariff attempted to regulate retail rates — a responsibility reserved for state regulators. The Commission’s decision sends a clear message about the limits of federal authority when it comes to retail-level electricity pricing.
“We find that Tri-State has not provided a sufficient basis for the Commission to find that its proposal does not regulate the terms and conditions of a [High Impact Load] Customer’s retail service in ways that are beyond the Commission’s authority,” FERC said, according to Utility Dive.
Tri-State’s Tariff Plan Targeted Data Center Growth
Tri-State proposed the plan in late August as part of a strategy to mirror tariff structures adopted by AEP Ohio and Dominion Energy Virginia. Those utilities successfully created tariffs to integrate data centers and other large electricity users into their distribution systems.
The company’s plan sought to establish a large-load tariff to meet increasing energy demands from AI-driven and high-computing facilities, which require stable, high-volume power connections. These loads often create significant challenges for transmission networks, forcing utilities to adjust pricing models to recover infrastructure costs.
However, FERC determined the filing did not meet federal standards and ruled that Tri-State’s proposed tariff fell under state jurisdiction. The decision highlights ongoing tension between federal oversight and state control in managing energy transition policies and large-scale industrial growth.
Tri-State’s Regional Footprint and What Comes Next
Tri-State Generation and Transmission Association, headquartered in Westminster, Colorado, is a wholesale power cooperative serving customers in Colorado, Nebraska, New Mexico, and Wyoming. The cooperative supplies electricity to rural utilities and regional members who rely on its mix of fossil and renewable resources.
Industry observers say the ruling could force Tri-State to rethink how it approaches large-load customers, especially as data center development accelerates across the Southwest. The company may now need to coordinate with state commissions in its service areas to craft compliant tariffs or pursue partnerships with investor-owned utilities that already have similar structures in place.
The decision also underscores a broader debate over how utilities balance high-capacity infrastructure needs with fair pricing for traditional consumers. As energy-intensive data centers expand, regulators across the U.S. face increasing pressure to define equitable frameworks for large-scale electricity users without undermining local ratepayer protections.
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