LPEA members should be paying close attention not just to the shift to Mercuria, but also to how rates are being managed in the meantime. We are being told that prices will remain stable in 2026. What isn’t being fully explained is how that stability is being achieved.
LPEA is relying on its rate stabilization fund – money typically set aside for emergencies like storm damage, major repairs and maintaining system reliability – to hold down rates. This money is meant to protect the system during unexpected events, not to mask the true cost of power. This creates the appearance of stability, but it is temporary.
At the same time, LPEA is transitioning to Mercuria, a for-profit global energy and commodities trading firm. That move exposes members to volatile energy markets influenced by global events, including the ongoing conflict involving Iran, which is already driving up energy prices. In other words, LPEA is using one-time money to soften the impact today while stepping into a future that may be more expensive and less predictable. What happens when that money runs out?
Members deserve transparency about these decisions and the risks involved. With LPEA elections in May, members should consider whether new board leadership – focused on responsible financial decisions, reliable power and long-term stability – is needed.
Patrick Hegarty
Durango
