The local discussion about examining alternative sources for La Plata Electric Association electricity is all about cheaper rates. Right now, we pay more than other Colorado communities for electricity. Did you know that?
For example, compare residential rates for Xcel Energy (which provides electricity for most of eastern Colorado) at 9.6c/kWh, and our LPEA rate, 12.6c/kWh. Decisively cheaper, right? Xcel’s fuel mix, like the average for America, is primarily natural gas, wind and solar energy; ours is 60 percent coal. Xcel recently priced new solar and wind power, receiving jaw-dropping bids: 1.81c/kWh for wind, 2.99c/kWh for solar. Add transmission and other costs (under 2c/kWh), and they decisively undercut Tri-State’s wholesale rate, 7.5c/kWh.
Has anyone noticed that our rising LPEA electricity rates have consistently outrun inflation? In the past 15 years, they’ve increased 87 percent, almost 2.5 times the rate of inflation (36.2 percent). Open market prices are not only cheaper, they can be fixed. Kit Carson Electric Coop (KCEC) in Taos, N.M., signed a fixed-rate contract for 10 years, for a rate so cheap that, including their debt payment for exiting their Tri-State contract, they end up with virtually the same total cost that we pay. When KCEC pays off their debt in six years, their rates will drop 40 percent below ours. They’ll actually drop more. KCEC is wisely installing their own local generation: 35MW of solar, enough to offset their summertime load. This is creating local jobs and fixed, lower rates, plus an energy system to hand down to their grandkids.
Kirby MacLaurin
Durango
