The La Plata Electric Association delivers power 24/7/365 to upward of 49,000 residential and commercial meters across 3,531 square miles that includes all of La Plata and Archuleta, and parts of Hinsdale, Mineral and San Juan counties, rugged territory equivalent to the size of Connecticut.
With 3,800 miles of lines – overhead, underground, and transmission – and approximately 37, 000 poles, the infrastructure and administration required to keep the lights on, and that LPEA’s 121 employees support, is significant.
It really is an extraordinary effort, something out of sight and mind for most of us, except perhaps like now during elections and around big decisions like the separation from Tri-State and rate increases.
Ballots for LPEA’s annual election have been mailed and electronic voting (with the hopes of garnering more than 25% of member votes) kicked off Apr. 21 with nine candidates running for three seats (a fourth seat in which we’re not endorsing is in Archuleta County’s District One).
Issues that have been raised as the election approached include the Tri-State separation, increased costs, transparency, power supply, conflicts of interest and CEO salary.
With a $110 million annual budget, LPEA is a sizable business. To compare, the City of Durango’s FY2025 budget is $133M. LPEA is a sophisticated operation that demands a leadership and management team to match. Yes, the CEO's salary is high for Durango, but $500,000 paid to CEO Chris Hansen is what the industry pays, and is within the 75th percentile of CEO pay for coops of a similar size (25% of CEOs make more than Hansen, a PhD). That’s what it takes to land and keep someone with the expertise we need. Jessica Matlock, Hansen’s predecessor, earned $524,000 a year.
The Herald’s editorial board met with six of the seven candidates running for Districts Two, Three and Four. Lyle McKnight, District Four candidate, has been absent. He did not respond to multiple emails, a phone call and text requesting an interview.
The enthusiasm for leaving Tri-State varies among the challengers; though for the incumbents the direction is forward without Tri-State.
Leaving Tri-State increases LPEA’s flexibility to generate more and varied local and regional sources of power (Tri-State limited LPEA to 5% local generation), create jobs, decrease costs and greenhouse gas emissions. The latter is a requirement of the state of Colorado that utilities must achieve net-zero GHG emissions and supply retail sales with clean sources of energy (50% by 2030, 65% by 2035 and 100% by 2050 compared to 2005 levels).
Borrowing a metaphor used by one of the candidates, “the separation allows us to refinance our own house, and no longer be a tenant in another,” absorbing costs marked up and passed on by the owner, and in Tri-State’s case, one encumbered with $3B in debt.
LPEA will shift from being a Tri-State member to its customer. Through an agreement with Mercuria Energy America, an energy and commodity group, LPEA has committed to purchasing 30% of its future power supply from the Tri-State-owned Dolores Canyon Solar Project and other sources (Herald, Nov. 13, 2024), saving 10%, approximately $7 million, per year.
The April 1, 7.72% rate increase (an average increase of $7.54 per month for residential customers) is a hard pill to swallow but everything has gone up in price, from a low of a 49% increase for electric poles to 207% increase for PVC pipe. The rate increase reflects the true cost of delivering electricity that LPEA determined via a third-party cost of service study, and is not the largest in history. In 2012, members were subject to an 11.3% increase and in 2007, 9.6%. The 2025 increase is the first since 2020, and far lower than the 23% inflation rate of the past five years.
Also, for perspective, the average kWh in the U.S. costs $. 20, in Colorado it’s $. 15, for LPEA it’s $. 12 c. LPEA’s board and leadership team is doing right by its members.
The Herald’s editorial board would like to see that momentum continue and believes the candidates best positioned to navigate the future are Brad Blake, District 2, Joe Lewandowski, District 3, and John Witchel, District 4.
The editorial board’s support of Brad Blake comes from his four years in the public sector as a La Plata County Commissioner gaining policy experience in local, state and federal issues, in the private sector as founder and operator of three businesses, one as a partner and co-owner of Konisto Companies (something he divested from in 2016 and with it his financial interest), the installer of the Sunnyside Community Solar Project. Blake was born in La Plata County, is trusted, and would serve as an important bridge to some of LPEA’s more rural members.
Joe Lewandowski’s advantage is that he’s completed two terms, a total of six years. Tenure goes a long way in understanding the issues that go into guiding a unique and complex company. He also has been in Durango for 20 years, serving 15 years on the planning commission and 16 years as Public Information Officer with the Colorado Division of Wildlife. Lewandowski advocates “Thinking Globally, Acting Locally” and is an advocate for the Tri-State exit and buying local in all forms, especially power supply.
John Witchel also has the advantage of incumbency having served five years on the board, including two years as board president and chair of the search committee that resulted in Hansen’s hire. He is a successful businessman having founded 10 startup businesses including Solar City, a residential solar installer. He currently owns and operates King Energy, a commercial solar and storage solutions company (with no financial or other ties to LPEA or Mercuria). His priorities are reducing costs, increasing renewables and fire mitigation. He serves on the Animas High School board and donates all his LPEA income to the Round Up Foundation.
Although LPEA has won awards for transparency and incumbents especially point to all meetings being widely publicized and recorded, meeting minutes and votes are public, as are salaries (see lpea.coop/lpea-fact-checker), others suggest there is room for improvement.
The Herald’s editorial board agrees and credits CEO Hansen for his “Coffees with Chris,” but thinks board members, who are paid, could do more outreach to members in their district. Additionally, as municipal and county governments have citizen advisory boards, it could be something of great benefit for LPEA to consider.
There is a great deal of talent in the candidate pool and some of those who do not end up getting elected could serve and offer their expertise and points of view.
Dave Peters, a Colorado native with an engineering degree, had an international career as an executive with Chevron, managing budgets with Ms and Bs after the $ sign. Peters is concerned with power supply and demand, and wants to see detailed financials again, improved communication and PUC oversight.
Greg Barber and Terry Greiner have decades of experience in the utility industry, as well. Barber’s experience is in finance, accounting, supply chains and, of great interest to the editorial board, tiered rate structures particularly focused on incentivizing rather than penalizing especially lower-income members. He believes growth should pay its way and LPEA should ask more of developers and lead on economic development.
Greiner’s work with ConEdison, Detroit Edison, and the fossil fuel industry, background in accounting, business systems, data analysis, industry plans and facilities, management, monitoring and maintenance, I.T., with vendors, Request for Proposals, and environmental quality is sound.
It would help to involve more members to bridge and communicate with the membership during the transition to LPEA becoming only a Tri-State customer. As advisers, Peters, Barber and Greiner could help.
Candidate and voting information is available at LPEA.coop/elections1. Paper ballots are due back by Tuesday, May 20 at 4 p.m.
