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Lumien renters balk at electricity deposit

LPEA says residents have several options
The Lumien Apartment complex off of 32nd Street offers low-income rentals. But some new tenants are having to pay La Plata Electric Association a deposit of hundreds of dollars for service.

Some residents at the newly opened Lumien Apartments off of 32nd Street balked when they saw the required deposit from La Plata Electric Association: $700.

While the deposit may be refundable after a year of responsible utility payments, it’s still nearly double the rent for some of the lower-end units at the income-capped dwelling.

A letter to the editor published Thursday in The Durango Herald condemns LPEA, claiming the association needs a “reality check and new conscience.”

The deposit amount for any new member establishing service is determined by LPEA regulation, but there are ways around it. A credit check, letter of recommendation from a previous utility provider or a prepay plan are the three alteratives, LPEA Chief Financial Officer Dennis Svanes said.

The prepay option allows tenants to pay as they go, from their phone if they choose, rather than face a cumulative bill at the month’s end.

Because Lumien is brand new, the issue is that LPEA has no history with the apartment complex, Svanes said.

“It’s an unknown,” he said. “When there’s a history, we take the average usage times three, so basically a three months’ average we collect on deposit. So if someone leaves our system without paying the bill, we have about three months’ worth of bills. Membership is our only revenue source.”

LPEA is a co-op through which members purchase all electric services through the association.

But there are lower rates for different types of dwellings, depending on the heat source. Gas heating, for example, could significantly slash the deposit rate.

LPEA is working with property management to investigate heat consumption at Lumien, and it’s possible the deposit could be lowered from $700 to a more standard rate, like $250.

Kelly Kenny with Pillar Properties, the property management company in charge of Lumien, said its residents aren’t necessarily entirely reliant on electric heating, so it looks as though new residents could soon be looking at a lower deposit.

If a resident’s utility consumption is all electric, the bill could be higher, as opposed to if he or she also had an account with a gas company, Svanes said.

He said LPEA waives deposits for demographics across the spectrum, “from an affluent businessman who just travels a lot, to a single mom trying to make ends meet,” and the prepay option is increasingly attracting local 20-somethings.

“It’s not just one segment of our population,” Svanes said. “Some opt for prepay out of convenience, some for financial reasons.”

jpace@durangoherald.com



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