LPEA’s CEO just announced the signing of a power contract with Mercuria, declaring that our co-op is ready to exit Tri-State. But while the announcement was made with confidence, one important voice has been left out of the conversation: the members.
While the board moves forward with a $209 million buyout, LPEA members are facing a 7.72% rate hike in 2025 – the largest in our co-op’s history. In contrast, CORE Electric, which stayed with its wholesale provider similar to Tri-State, limited its increase to just 3.3%. That’s less than half LPEA’s. It proves that stable, long-term contracts can protect members from financial shock.
Meanwhile, United Power exited Tri-State in May 2024 and has already raised rates nearly 20% in just one year. Its costs are still climbing, with no end in sight.
So what exactly are LPEA members getting for this costly transition? Do we get ownership in new generation? Any guaranteed savings? Where are the members capital credits? Do we lose access to affordable federal hydropower? And even after the buyout we still continue to be dependent on Tri-State for 30% of our energy.
This isn’t innovation – it’s financial risk, and members are being left in the dark.
LPEA must release the full financial plan, Mercuria contract details and projected rate impacts. And above all, members deserve a vote.
It’s our co-op. Let’s act like it.
Gerry Cuca
Durango
