People often propose over-simplified solutions to the complex problems faced by rural electric cooperatives.
Inevitably, these solutions ignore certain realities and the diverse needs of the members.
Take, for example, the La Plata Electric Association. It has been proposed that a simple jump from Tri-State Generation and Transmission to Guzman Energy would save members a substantial amount of money.
However, when we purchase energy from Tri-State, there are several things we get besides safe, reliable power.
In fact, there are over 50 imbedded services included with the power Tri-State provides its members. Chief among these are what is known as wheeling and other ancillary services.
With Guzman Energy, you only get power.
In order for energy to get from the generation source, it must travel across miles of transmission lines. Tri-State owns these lines and is responsible for keeping them up to federal safety standards; if we were to break our contract, Tri-State would charge us for this service we currently get included in our rates.
The idea that LPEA could handle this on our own or at a decreased cost is absurd.
Kit Carson Electric Cooperative in Taos found this out after it broke its contract. Assuming Tri-State was going to keep providing the same services for free has already cost its members an extra $3 million.
You take that and add in the additional $10 million per year KCEC now pays Guzman for their power (based on 2018 PRC filings by KCEC) and it is no wonder Kit Carson is now in default and forcing rate increases on their members.
Lorraine Trenholm
Ignacio
