Tri-State Generation and Transmission Association and Environment Colorado have reached a settlement in a water rights case concerning a power plant project in southeastern Colorado.

Environment Colorado had challenged Tri-State's application in Colorado water court to change the use of 20,000 acre-feet of agricultural water to industrial use for a future southeastern Colorado power plant that would serve the association's members.

Environment Colorado agreed to withdraw the challenge in exchange for Tri-State's agreement to work together on an energy-efficiency study.