As a member-owner of Tri-State, LPEA receives annual capital credit allocations – a share of Tri-State’s profits based on how much power LPEA purchases. These are recorded as patronage capital, essentially a form of equity held in LPEA’s name. Over time, Tri-State retires these credits, returning them as cash payments to LPEA and its members.
Between 2019 and 2024, LPEA received over $9.4 million in new allocations and more than $10.5 million in cash retirements. These dollars represent real, earned value returned to our local cooperative – value built up over decades of participation in Tri-State.
Now, as LPEA considers paying $209 million to exit its contract with Tri-State, a critical question arises:
What happens to our remaining patronage capital – valued at nearly $70 million as of March 2025?
Tri-State’s bylaws state that members do not own a portion of Tri-State’s assets. However, patronage capital is a recognized financial obligation – a long-term promise to return value to members.
If LPEA leaves, will we still receive our share? Is it postponed, forfeited, or transformed into something else? Does our exit cancel the obligation, or will it be honored over time?
Before LPEA moves forward with a $209 million payment, members deserve clear, written answers. Otherwise, we risk walking away from tens of millions in member equity with no guarantee of repayment.
This is our money. We have the right to know what happens to it.
Ken Fusco, Sr.
Durango
