La Plata Electric Association customers appear to be facing an average 4.5 percent rate increase come Jan. 1 as a result of board action Wednesday.
Board members, who gave preliminary approval to the measure, will take a final vote Dec. 18. Specific increases depend on individual rate classifications, but the average monthly residential bill of $99.60 will increase $4.20.
Rate increases are based on consumption. Base charges cover fixed costs.
In November 2012, the board approved a rate increase of 11 percent, which took effect this year.
Base charges, which cover operational costs, also have risen. The residential base charge increased from $13.40 a month in 2011 to $15.60 in 2012 and to $20.50 in 2013. No increase in the base charge is proposed for 2014.
Several factors influence the rate increase given preliminary approval Wednesday:
Tri-State Generation and Transmission, LPEA’s wholesale supplier, is charging more for its power.
New hires will be required to replace numerous employees retiring next year.
Increased interest in renewable-energy and energy-efficiency projects will require new employees.
General inflation is pushing all costs upward.
LPEA is a Touchstone Energy Cooperative established in 1939. Today there are 44 members. LPEA has 30,000 customers in La Plata and Archuleta counties with 41,000 meters.
“We’ve reduced costs with use of new technologies, reduced programs and refinanced debt,” the cooperative’s CEO Greg Munro said in a statement. “We are about as lean as we can get without impacting quality (and) reliable service to our members.”
Munro said LPEA needs an estimated $4.6 million more in 2014. The budget will be lean, but more savings will be required, he said.
The rate increase tentatively approved Wednesday will appear in newspaper advertisements and are available online at www.lpea.coop. Information also is available at 247-5786.
daler@durangoherald.com
