La Plata Electric Association is well on its way toward a new energy future that embraces the benefits of market competition. LPEA recently announced several key milestones as it lines up a modern energy portfolio after terminating its restrictive contract with Tri-State Generation and Transmission one year from now.
LPEA’s transition from Tri-State is occurring just in the nick of time. Last week, Tri-State’s board of directors approved a requirement to further extend the contracts with its remaining electric distribution cooperatives for another 16 years. Now, cooperatives staying with Tri-State will have to agree to take power through 2066, more than 40 years into the future.
Forty years ago, it would have been hard to imagine today’s proliferation of wind and solar generation. Another 40 years into the future, who is to say how far advanced geothermal or battery storage or transmission efficiency or any number of other technologies might be, all the more reason to appreciate that LPEA won’t be handcuffed to Tri-State’s vision of power generation for decades longer.
LPEA is currently required to buy 95% of its power from Tri-State, with just 5% available from local or other sources. Starting next year, LPEA be able to compare options freely available in the marketplace and secure those that minimize future electricity costs while also reinvesting member dollars in local projects. LPEA spends over $70 million annually in electricity purchases, which is collected from local LPEA members and sent out of our community. With its newfound flexibility, LPEA can instead spend some of that money locally.
LPEA has lined up several intermediate power supplies, including purchasing some power from Tri-State’s new Dolores Canyon solar project near Cahone. The voluntary and market competitive nature of this contract is a key distinction from the current Tri-State contract, in which Tri-State unilaterally sets the terms and the prices.
LPEA has lined up a portion of its replacement power supply for an interim period from 2026-2028 at a price 10% lower than its current arrangement with Tri-State, which portends positive progress in managing electric costs. LPEA is also presently soliciting proposals for longer-term power supplies. These could include power from existing local sources, buying a slice of electricity from the large solar projects underway just over the state line in New Mexico, or partnering with regional tribes, among many options.
With the energy markets now offering lower-cost, local renewable power opportunities, electric cooperatives across Colorado are pursuing the advantages of energy independence. Three co-ops have already ended their contracts with Tri-State, including Delta-Montrose, Mountain Parks serving Winter Park and Granby, and United Power that covers Broomfield and areas north of Denver.
Additionally, several other co-ops previously served by Xcel have cut their ties in search of more competitive and less volatile power supplies. These include Grand Valley Power serving areas around Grand Junction, and Yampa Valley Electric in Steamboat Springs.
Each year, the member owners of LPEA have the chance to approve directors for the rural electric cooperative. Ballots are in the mail April 21. LPEA is also offering a new online voting option, linked to a member’s existing account. Generally, only about 25% of members eligible to vote take part in the annual elections for the co-op’s board of directors. Online voting offers a test to see if it increases participation.
Some years, LPEA elections are sleepy affairs with few contested seats. This year, there is robust competition, with some candidates embracing the opportunities inherent in charting an independent course free of Tri-State, and others anxious about the change and yearning for the past.
Mark Pearson is Executive Director at San Juan Citizens Alliance. Reach him at mark@sanjuancitizens.org.
