Panhandle Rural Electric Membership Association (PREMA) announces intent to terminate wholesale power contract with Tri-State due to projected rate increases. PREMA will have a rate increase starting Jan. 1, 2026, of 4% which is attributed to Tri-State, but more alarming is the forecast of over 30% rate increases over the next several years.
Tri-State Generation and Transmission Association based out of Westminster Colorado currently serves the district with a contract scheduled to end in December 2050. Projected rate increases have encouraged PREMA to search into alternative options for wholesale power providers.
PREMA notice terminating the wholesale power contract will allow us to find alternative options while maintaining reliable service. Early termination of the existing contract will begin a formal process of transition. Notice to terminate contract will start a 2-year process to complete.
“The driving factor for PREMA to look at alternative wholesale power supply is the projected rate increases. Tri-State is driven by policies and politics of Colorado that have tremendous cost increases that are unsustainable. These policies affect Nebraskans without benefit.” added Zac Bryant, General Manager of PREMA. “Nebraska is the only Public Power state designed to supply reliable power at a lower cost, and members of Nebraska pay over 30% less than we do. Colorado policies affect more than their own state as Nebraska, Wyoming, and New Mexico will also be impacted. The costs impacts have become too great, and we have good alternative options.”
PREMA will provide updates and transparency as the transition continues. PREMA is working diligently with all appropriate agencies to ensure a smooth transition.
PREMA celebrated 80 years this year of proudly serving the Nebraska Panhandle in portions of eleven counties covering over 7500 sq. miles. PREMA serves over 1600 members, providing service to more than 3800 meters.