The number of La Plata Electric Association customers who sold excess “green” power back to the cooperative increased in 2013, and conversely, LPEA bought less power from its wholesale supplier.
The companion trends are highlighted in the cooperative’s annual report to customers, which was mailed Friday.
Ninety-five new net-metered accounts were added to the LPEA grid last year, bringing to 477 the number of customers whose alternative sources of energy produced more electricity than they needed. In those cases, meters spin backward to reduce electric bills.
Almost all the net-metered customers produce energy from solar panels. Only a handful are hydro or wind customers.
The capacity of the new net-metered customers was 598 kilowatts, producing an estimated 960,533 kilowatt hours of electricity. The 477 customers connected to the grid have 2,469 kilowatts of capacity and produced an estimated 3.965 million kilowatt hours of power.
In 2003, LPEA had two net-metered customers who had 40 kilowatts of capacity and produced an estimated 65,000 kilowatt hours.
As LPEA bought less energy from wholesaler Tri-State Generation and Transmission, it sold less. Sales were down 4.65 percent in 2013, the third consecutive annual decline. In 2012, sales were a negative 3.32 percent and in 2011, a negative 2.98 percent.
“This reduction of energy sales is primarily due to our local natural-gas industry decreasing electrical usage for gas compression,” CEO Greg Munro said in his message. “But it also reflects our many energy-efficiency efforts and programs.
“What this means in the financial management realm at LPEA is that we must continue to obtain the necessary margins from energy sales,” he said. “The price of electricity will have to increase if this trend (falling sales) continues.”
Although sales of electricity declined in 2013, a rate increase boosted operating revenue from $95.6 million to $102.5 million. The increase was offset by $11.6 million less revenue from two subsidiaries – Western Energy Services of Durango Inc. and Fast Track Communications, a wholesale broadband service.
Overall then, total operating revenue dropped from $115.1 million to $110.36 million.
Total operating expenses dropped from $111.7 million to $107 million.
Residential sale of electricity accounted for 40 percent of revenue. Commercial sales accounted for 29 percent, industry 30 percent and 1 percent of “other” customers.
Seventy percent of customer payments went to purchase power; 8 percent for operations and maintenance; 4 percent for customer service; 3 percent for administration; 9 percent for depreciation; 5 percent for interest; and 1 percent other.
daler@durangoherald.com
