As we move into spring, we want to acknowledge the valuable conversations we've had with members across our service territory. Your voices are at the heart of our work, and we appreciate the time you’ve taken to share your thoughts.
One of the most common concerns we’ve heard is about our rate adjustment – particularly the need for greater clarity and the importance of ensuring that our most at-risk members are considered.
We hear you. Unlike investor-owned utilities, we don’t answer to shareholders. As a not-for profit cooperative, our sole focus is serving our members, and we take that responsibility seriously. We understand that rate changes impact your household budgets, and we don’t make these decisions lightly.
These adjustments are based on an extensive cost-of-service study that accounts for the full cost of delivering power to our members. While we have worked hard to control operational expenses, we can no longer absorb the impact of more than five years of inflation.
The proposed changes, which represent an average 7.7% increase, reflect the rising costs of delivering electricity in a sector that has seen a 30% increase in costs over the past five years. Without these adjustments, we risk jeopardizing the future reliability and financial health of our cooperative.
Our proposed rate adjustments aim to balance fairness, affordability and long-term sustainability, while keeping the energy charge below the Colorado average. By increasing the residential base charge and peak power charge while lowering the energy charge, we are ensuring that all members contribute equitably to maintaining and improving the grid we all rely on.
Part of ensuring this stability includes proactively managing our power supply. While we’ve seen recent challenges in the broader energy sector and other Colorado utilities, we remain confident in our path forward. For example, Tristate's ability to deliver clean energy to its members has been complicated by the fact that their federal loans have yet to be distributed, adding financial strain and uncertainty to their ability to invest in the renewable projects they need.
This reinforces why LPEA’s decision to take control of our energy future is the right one. By securing our own diversified energy portfolio, we are well positioned to meet and exceed Colorado’s climate targets and continue to deliver solid reliability.
We have already been engaging with potential partners and reviewing Power Purchase Agreements for renewable energy, and we are encouraged by the indicative pricing we’ve received. By sourcing energy through competitive procurement and direct negotiations, we have more control over securing cost-effective renewable energy tailored to our members’ needs.
Based on what we’ve seen so far, we do not anticipate the need for a rate increase to support our energy transition in 2026. We’re really pleased with the “cards we’re holding,” and we will continue to share more details as they come into focus.
As John F. Kennedy once said, “the time to repair the roof is when the sun is shining.” Thoughtful, proactive decisions today will ensure a strong, resilient energy future for our members. The LPEA Board of Directors will vote on the proposed rate tariff on March 26, and we will continue to keep our members informed.
As we navigate these changes, we remain committed to transparency, collaboration, and ensuring that the cooperative continues to serve our members' needs – today and for years to come.
Chris Hansen is CEO of La Plata Electric Association.
