As a graduate of Colorado School of Mines (B.S. Electrical Engineering, 1989; M.S. Mining Engineering, 1992) and a resident of this area since 1977, I have watched La Plata Electric Association’s evolution with growing concern.
The administrative overhead at LPEA has ballooned from roughly $9.7 million in 2021 to over $15.6 million in 2023; an increase of more than 60%. Executive salaries, including the CEO’s, have more than doubled, even though LPEA has not expanded its territory or added significant new service obligations.
With my technical training, I understand the complexity of energy procurement and delivery. It’s clear that the current board and leadership, while well meaning, do not have the in-house expertise necessary to manage volatile energy markets and complex contracts like those with Mercuria. Instead, they are heavily relying on costly consultants, lawyers and advisers at significant expense to members.
Leaving Tri-State may have sounded appealing, but it exposed LPEA to a level of market risk and operational complexity that few on the board or staff are equipped to manage alone. The result is skyrocketing administrative costs with little assurance of price stability or improved reliability.
As a longtime member of this community, I urge greater transparency, fiscal responsibility and a serious reassessment of where LPEA is heading before more damage is done.
James D. Lane
Ignacio
