In a bid to tame the energy appetites of large power users, Tri-State Generation and Transmission Association filed a regulatory tariff proposal with the Federal Energy Regulatory Commission intended to manage massive power demands without sparking chaos on the grid or hiking bills for ratepayers.

The nonprofit wholesale power supplier, serving 42 member cooperatives across Colorado, Nebraska, New Mexico, and Wyoming, designed the High Impact Load Tariff and Agreement to create a streamlined process for onboarding large power users. It regulates load projected to exceed 45 megawatts within four years like server farms for AI and cloud operations.

“We’re in the business of providing electricity, and we are committed to doing it in a way that can meet the needs both of new loads and Tri-State members,” said Lisa Tiffin, Tri-State’s senior vice president of energy management in a news release. “This approach allows us to grow responsibly and limits the potential for stranded assets that could result in financial risk to Tri-State and our members.”

Energy use by server farms can be hard to predict and FERC has issued warnings that grid stability could be at risk if sufficient stable full-time generation capacity doesn’t remain available 24/7 during the expansion of large-scale electrical loads.

The filing with FERC, rather than the Colorado Public Utilities Commission, stems from Tri-State’s intentional change to its regulatory framework in 2020. Prior to 2020, the cooperative fell under partial oversight by four state regulators, including the Colorado Public Utilities Commission.

Tri-State’s board in 2019 voted to add non-utility members, a deliberate step to invoke exclusive FERC jurisdiction under the Federal Power Act. FERC confirmed the shift in regulatory authority in 2020, preempting state PUCs to enable uniform interstate regulation and avoid fragmented, multi-state compliance burdens.

The proposal requires security payments to shield against fiscal risks, enforces minimum contract commitments, and sets baseline monthly fees for demand and energy usage. The requirements are intend to avoid “stranded assets,” where expensive infrastructure gets built only to gather dust if big users bail early or don’t show up after transmission and other infrastructure have been built, leaving rural ratepayers footing the bill.

Tri-State engaged in months of workshops that included Tri-State’s board, staff, members, developers, and prospective clients in discussions on reliability, affordability for heartland communities, and sustainable growth in an era of state-imposed electrification mandates, according to the release.

Founded in 1952, Tri-State powers about 1 million end-users via coal, natural gas, renewables and market purchases, all while integrating environmental protection with emission cuts and clean energy goals.

Data centers could devour up to 9% of U.S. electricity by 2030, per industry forecasts, fueling similar policies in tech-hotspots like Virginia.

FERC’s review, which invites public feedback and may stretch months, could blueprint how cooperatives nationwide juggle industrial surges.