Securing reliable, affordable power

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 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 stem from an extensive cost-of-service study, ensuring rates reflect the actual cost of delivering power. While we’ve worked hard to control operational expenses, we can no longer absorb the effects of more than five years of inflation. The proposed changes – an average 7.7% increase – reflect rising costs in a sector that has seen a 30% increase over the past five years. Without these adjustments, we risk jeopardizing the future reliability and financial health of our cooperative.

Our approach balances 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 ensure all members contribute equitably to maintaining and improving the grid.

Stability also depends on proactively managing our power supply. The broader energy sector faces challenges, including uncertainty with Tri-State’s federal loans, which has complicated their ability to invest in renewables. 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 while maintaining reliability. We’ve already engaged with potential partners and reviewed Power Purchase Agreements (PPAs) for renewables. The indicative pricing we’ve received is encouraging, showing that competitive procurement and direct negotiations allow us to secure cost-effective renewable energy tailored to our members’ needs.

Based on current analysis, we do not anticipate a rate increase to support our energy transition in 2026. We’re optimistic about the opportunities ahead and will continue to share updates as more details 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.

As we navigate these changes, we remain committed to transparency, collaboration and ensuring that LPEA continues to serve our members’ needs – today and for years to come.

– Chris Hansen, CEO, La Plata Electric Association