The Delta-Montrose Electric Association paying $62.5 million to leave Tri-State, which is also LPEA’s wholesale provider, is important news for our community, another indicator that LPEA could exit its expensive Tri-State contract for a reasonable amount – possibly around twice what DMEA paid, since LPEA is bigger, and our contract runs longer (“
Every cent per kilowatt hour we can save with a new contract adds up to about $10 million per year LPEA saves, and open market contracts (all costs included) run one to two cents cheaper than Tri-State. That means that LPEA can save between $10 to $20 million per year by exiting Tri-State – precisely why DMEA is leaving its contract. Those savings pay off a debt quickly.
Guzman is one of several open market power providers that offers flexible power provision (to allow co-ops to expand their own generation facilities). Guzman’s fixed-rate contracts compare favorably with Tri-State’s variable rate.
I appreciate our LPEA board’s due diligence and loyalty to co-op members by pursuing open market options. I support our incumbents, Guinn Unger and Rachel Landis, and electrical engineer Doug Fults in the LPEA board election.
Laurie RobertsBayfield
