A Tri-State refresher

The upcoming election for the LPEA Board is an important chance to keep the community moving forward rather than going backward. A recent Durango Herald article outlined the LPEA Board candidates’ positions. The clearest difference between the candidates’ platforms is their position on last year’s cancellation of the contract between LPEA and Tri-State. 

My understanding of the FACTS are: 

1) The contract with Tri-State was canceled last year and the cancelation paperwork is signed and complete.    

2) New energy contracts have been signed by both parties. Trying to go back would be chaos, counter-productive and expensive. 

3) The Tri-State contract was extremely restrictive to LPEA and its members. They limited local production of energy to 5%, hindering the installation/development of local projects. (Rooftop is “behind the meter” and thus not prohibited by the 5% cap;)

4)  The minutes from recent Tri-State meetings suggest that Tri-State is counting on the contract termination payment from LPEA to stave off insolvency. Tri-State needs that money to avoid insolvency and stay in business.    

Tri-State is not the partner that we want to re-hitch our wagon to: 

1) Tri-State is in a difficult financial position. They are $3.5B in debt because they reinvested in coal when they should have looked at more economical options.

2) Their bond rating has been downgraded twice; 

3) They have lost 30% of their revenue due to member exits and have not adjusted their operations accordingly;

4) Tri-state is counting on a huge bailout from the federal government, but this will probably include more debt.

Moving forward on the current path is sensible and the right path for several reasons:

1) The vision of the LPEA Board is focused on local control and supports the local economy;

2) The region has 300+ days of sunshine and an estimated 1GW of geothermal energy potential;

3) Locally produced green energy will benefit the local economy instead of sending $70M a year out of our region;

4) The 7MW hydroelectric plant at Vallecito Dam is partially owned by Pine River Irrigation District, which will gain more income from selling directly to LPEA, while members get lower energy costs;

5) Joining the Southwest Power Pool opens a new energy market for these local producers. The region could become a net exporter of energy paying a dividend to member owners.

Overall, this focus on going back is a little like focusing on the rear-view mirror and thinking about where you have been rather than focusing on where you are going. I urge you to reelect John Witchel (District 4), Joe Lewandowski (District 3) and Holly Metzler (District 1) to the LPEA Board. Let’s keep moving forward – our future is bright. Let’s focus on where we are going and enjoy the ride.

– Stephen Crandall, Durango