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La Plata Electric Association lowers off-peak rates

Savings program to start in March
La Plata Electric Association is lowering its off-peak rates in March for customers who choose to be billed based on when they use electricity.

Some La Plata Electric Association customers can expect to see a lower bill in April.

Those billed based on when they use their electricity will pay less for power that they use overnight and in the afternoon starting in March.

The LPEA board voted last week to approve a 7.7 percent decrease in price from 6.5 cents per kilowatt hour to 5.9 cents per kilowatt hour during off-peak hours. During peak hours, customers will continue to pay 16.8 cents per kilowatt hour.

“It would not take much for a customer to pay attention to when they do their laundry, when they run their dishwasher and save 5 percent,” said Dan Harms, manager of rates, technology and energy policy.

Those who are not part of the time-of-use program pay 12.5 cents per kilowatt hour no matter when they use electricity.

To provide electricity during peak times in the morning and evening, LPEA has to run less-efficient generating stations, and it costs the co-op more.

Through the time-of-use program, LPEA can encourage savings for the co-op and customers.

About 5,000 meters, of the 42,000 meters served by LPEA, were in the program three years ago. Now, the owners of about 2,100 meters are billed based on when they use power.

When Tri-State Generation and Transmission Association changed its rate structure in 2013, many customers left the program, Harms said.

“It was an ugly management decision at the time,” he said.

LPEA was recently able to negotiate a better rate for off-peak hours with Tri-State. As a result, interest in the program is growing again.

“We’ve had a ton of calls in the last month,” Harms said.

LPEA’s off-peak hours are 1 p.m. to 5 p.m. and 11 p.m. to 7 a.m. Monday through Saturday, and all day Sunday.

mshinn@durangoherald.com



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