We appreciate the engagement around LPEA’s power transition but want to correct misinformation (Herald, April 2).
The 7.72% rate adjustment in 2025 is not the largest in LPEA’s history – in 2012 it was increased 11.3% and in 2007 by 9.6%. This is the first LPEA rate adjustment since 2020 and is significantly lower than the 23% inflation during this same period.
CORE Electric is not “staying” with its wholesale provider nor was it ever a member of Tri-State. CORE terminated its contract with Xcel effective 2026, after which new power agreements will take effect – marking a significant opportunity in its energy portfolio just like LPEA.
Through this transition, LPEA members are getting: 1) a 10% reduction in the blended cost of power; 2) predictable pricing; and 3) lower carbon emissions. In contrast, Tri-State is now on a formula rate plan that can change annually.
Additionally, ownership in new generation may be possible but might not always be in the best financial interest of our members due to our tax-exempt status. We will continue to evaluate whether it is worthwhile to have an option to purchase in any supply agreement.
Member capital credits are unaffected and remain allocated on our books. Our transmission agreements will continue to provide us access to affordable federal hydropower. And yes, post-exit, we will receive 30% of our energy from Tri-State – but at a lower cost than we’re paying now.
Our goal remains clear: affordable, reliable, and sustainable energy for our members.
Chris Hansen, CEO, La Plata Electric Association
Durango
