La Plata Electric Association has signed a 10-year agreement to purchase hydropower directly from the owner of the hydroelectric power plant at Vallecito Dam, a step forward in the co-op’s push for energy independence and local clean power.
The deal, finalized with the hydropower plant’s developer, Ptarmigan Resources and Energy Inc., will take effect April 1, 2026, and run through March 31, 2036.
As a result, LPEA will secure 5.8 megawatts of renewable capacity – enough to power about 2,500 homes annually – from the locally operated hydroelectric facility, according to news release.
While LPEA has received power from Vallecito in the past, this is the first time the co-op has been able to purchase directly from the source, said Amanda Anderson, LPEA spokesperson.
Until now, Vallecito’s energy was bundled into the portfolio of LPEA’s wholesale supplier, Tri-State Generation and Transmission Association.
“What’s new is that we now have a direct agreement with the facility’s owner,” Anderson said. “That means starting in 2026, all of Vallecito’s power comes straight to LPEA and our members – no middleman – and more value stays local.”
The agreement follows LPEA’s upcoming exit from its long-term contract with Tri-State, a move approved by the co-op’s board in 2024.
By leaving Tri-State, LPEA aims to gain direct control over its rates and have more flexibility in pursuing renewable energy projects.
Vallecito Dam’s power will account for about 2% of LPEA’s total annual energy needs, Anderson said.
While modest in proportion, the co-op says the local generation brings significant benefits.
“It’s clean, carbon-free energy generated right here in our service territory,” Anderson said. “It helps keep energy dollars local, supports grid reliability, and gives us more flexibility in how we serve our members.”
Because power production from hydro sources can vary with water availability, LPEA emphasized that the contract only requires payment for the energy delivered. That means if low water levels reduce output, the co-op won’t be stuck paying for unused capacity.
LPEA members won’t notice any changes in their day-to-day service, but Anderson said the behind-the-scenes shift signals real progress toward a cleaner, more resilient energy future.
“This agreement is part of a bigger plan to invest locally and create a cleaner, more flexible power supply,” Anderson said.
jbowman@durangoherald.com
A previous version of this story erred in saying Ptarmigan Resources and Energy Inc. owned the Vallecito Dam. The company is the owner and developer of the hydroelectric power plant at the dam, not the dam itself.
