Rethink exit from Tri-State?

I read with interest the Sept. 6 Colorado Sun article about Tri-State receiving the largest Inflation Reduction Act (IRA) award in Colorado of $679M. These funds “will help it (Tri-State) to exceed Colorado greenhouse gas reduction goals.”

I will admit in the past I have viewed Tri-State as a carbon-polluting villain, generating a high percentage of coal-based power. Eating my words, they have made progress in the last few years in stepping up renewable energy generation. This IRA award will greatly accelerate that transition.  Tri-State’s change to allow us to locally generate up to 40% of our own power (up from just 5%) gives us local control options. Tri-State also has a few large advantages over other energy suppliers – long term reliability and now financial stability.

Is it in the best interest of LPEA to rethink a Tri-State exit? Would energy purchase from Tri-State be a long-term, cheaper, more reliable source than other options?

My understanding is that LPEA can still re-enter an agreement with Tri-State, as long as LPEA has not actually paid the $207M exit fee.  Saving that exit fee plus interest on the loan is no small accounting.  That sum does not go toward providing electricity, just to break the contract. Regardless, we will still pay Tri-State as they own all our transmission lines.

I encourage the LPEA Board of Directors and senior staff to do a thorough new cost analysis of exiting in light of this new announcement.

–Susan Atkinson, Durango