Energy Cooperative Challenges FERC’s Exit Fee Calculation Method

The Federal Energy Regulatory Commission’s method for calculating contract termination payments should be vacated because it goes against the contracts that an electricity cooperative has with its members, it said in its challenge to the agency before the Tenth Circuit.

“FERC violated the Federal Power Act and governing precedent by abandoning the core purpose of a contract termination payment,” which is making sure the remaining members don’t face a financial burden when another member leaves before the end if its contract term, Tri-State Generation and Transmission Association Inc. said in its brief filed with the US Court of Appeals for ...