October 3, 2026 - The U.S. Court of Appeals for the District of Columbia Circuit upheld a Federal Energy Regulatory Commission decision October 2 concerning Northwest Rural Public Power District’s planned withdrawal from Tri-State Generation and Transmission Association.

The court denied Basin Electric Power Cooperative’s petitions, finding that the withdrawal would not breach Basin’s wholesale-power agreement with Tri-State if the contract’s conditions are satisfied.

Tri-State purchases electricity from Basin to serve members in the Eastern Interconnection under an agreement running through 2050. Northwest Rural supplies customers in northwestern Nebraska.

Basin argued that permitting the departure would undermine Tri-State’s long-term purchasing obligations. The court instead found that Section 9 provides a mechanism for transferring assets, subject to financial obligations and reasonable conditions. Tri-State remains bound by its agreement with Basin.

The court recognized that losing Northwest Rural’s demand affects Basin’s power-supply planning, financial forecasts and rates. However, those effects did not establish a contractual prohibition against withdrawal.

The proceeding did not determine the amount Tri-State must pay Basin. The opinion also noted that Basin and Northwest Rural resolved their exit dispute after the case was submitted.

The ruling addresses the specific contract rather than granting unrestricted withdrawal rights.