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Rate design is complex and evolving

To ensure readers have accurate information, I’d like to address comments made in a recent letter to the editor, “LPEA board playing politics with subsidies” (Herald, July 16).

La Plata Electric Association serves nearly 50,000 meters across diverse terrain from urban neighborhoods to rural and mountainous areas. Because it costs more to deliver electricity to remote locations than to denser communities, we strive to adjust rates as fairly as possible, though it’s not an exact science.

Our mission is to provide reliable, affordable and resilient electricity to all members. To support this, we completed a third-party cost of service study in February 2025. This study helps us understand how costs are distributed among member types and guides our rate design.

One key finding is that net metering programs for rooftop solar, used by about 3% of our residential members, can create cost shifts. These members generate over 25 megawatts of local solar power. To address this, we’ve increased the fixed monthly base charge and added a Peak Power Charge, which is based on each member’s highest hourly energy use between 4 and 9 p.m. each month. This ensures all members contribute fairly to fixed system costs, especially during peak demand.

Utility-scale solar projects like Sunnyside Solar also play a vital role, providing clean energy to about 600 homes annually and helping keep rates affordable while supporting grid reliability.

Rate design is complex and evolving. That’s why LPEA is committed to transparency and encourages members to join community sessions to learn how shifting your energy use can save you money.

Nicole Pitcher

President, Board of Directors, La Plata Electric Association

Pagosa Springs