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LPEA base rate increase inexplicable

La Plata Electric Association Director Davin Montoya’s letter (Herald, Jan. 12) was so strange, full of misinformation and absurd that it mostly can be ignored. But his blatantly false statement that the protesting directors did not ask how LPEA would pay its bills needs to be corrected.

Board minutes clearly show extensive consideration of the effect of not increasing the base charge. Board minutes show LPEA staff is projecting a $3.9 million margin in 2016 with the new rates! That margin is the excess money LPEA plans to collect above what it needs.

The “napkin” calculation Montoya refers to can be easily worked out in your head. LPEA has about 30,000 residential meters. If the extra $1 base charge increase was not implemented, that is $30,000 month or $360,000 per year less. If directors Mark Garcia and Jack Turner’s motion to eliminate that base charge increase had passed, the margin would drop down to about $3.5 million – still plenty healthy.

In addition, LPEA’s last annual report shows over an $8 million margin for the previous year. I am glad LPEA is doing so well, but I do not understand Montoya and his cronies refusing to compromise on that unneeded base charge increase. I do not know Montoya’s motives, but he acts more like a lobbyist for the coal industry and Tri-State instead of acting in the best interests of La Plata County’s residents and LPEA members.

Rik Anderson

Durango



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