If you pay an electric bill to LPEA, you are a member/owner. LPEA recently announced a rate increase that affects us all. I decided to investigate how the money would be spent.
Asking the board for a copy of the 2020 budget, I was given a summary budget with expenses of almost $24 million. When I asked for a detailed budget, the CEO stated I was given the exact information the board received and approved.
LPEA said the rate increase would improve electric infrastructure, however, the budget for this category is less than in the past. Conversely, Administrative/General, and Other Customer Services expenses, are almost $11 million: a 22% increase over 2018!
How can the board of LPEA approve a budget without knowing expense details?
I am a former electric co-op director in Colorado. Our board held annual budget meetings. Our CFO presented a detailed budget that allowed us to make prudent and accountable decisions. So, I’m asking; is this board negligent, or is this a lack of transparency?
Digging deeper, I found these facts from IRS Form 990 and annual reports: CEO salary: $300,000+/year. Combined salary of top 10 employees: $2 million/year. 2019 Board expenses: $310,000-plus.
The board is neglecting its fiduciary responsibility. Stop this excessive, irresponsible spending!
Sue McWilliamsDurango
