Once again, the cooperative spirit of consumer-owned cooperative power has brought another success story to the Tri-State membership family. In this case, it was a three-party collaboration between Tri-State, its member, Continental Divide Electric Cooperative (Grants, N.M.), and the nearby city of Gallup, which was in search of a competitive priced electric power supplier to serve its community of approximately 21,000 residents for an eight-year term beginning this summer.
According to, Michael Martin, Tri-State’s business development manager for energy markets, the city of Gallup issued a request for proposal last fall in anticipation of replacing the power supply contract set to expire at the end of June 2014.
“Continental Divide expressed interest in collaborating on a proposal that they ultimately submitted to city officials in November,” explained Martin. That collaboration is essentially an arrangement in which Tri-State will sell the power to Continental Divide and Continental Divide will, in turn, resell that power to the city of Gallup.
In January 2014, the city announced that Tri-State and Continental Divide’s bid offered the most favorable terms over the three other bids that they had received. “At that point they negotiated the details of the sale between Gallup and Continental Divide,” said Martin.
“The result is a win for all three parties in that the people of Gallup will receive a reliable supply of competitively priced power for the next eight years, Continental Divide serves a new load that will help offset power costs to its members and Tri-State benefits by helping its members find more power supply opportunities that strengthen the entire membership,” he added.
“We are pleased to have been selected by the City of Gallup, as its provider of electric power,” said Robert Castillo, general manager of Continental Divide Electric Cooperative. “We believe our new relationship with Gallup will benefit the entire region, including city residents and our own membership,” he added.
Annual energy sales to Gallup are estimated at 230,000 megawatt-hours annually. The new contract will provide power to the city through June 30, 2022.