solar garden

We are taking back the reins of our energy future.

LPEA is actively taking steps to ensure its future energy needs are met through a mix of local and external generation sources while maintaining a focus on cost-effectiveness, reliability, and sustainability. These efforts are also aligned with our commitment to meet and exceed the state-mandated greenhouse gas reduction goals, contributing to a cleaner, more sustainable energy future for the region. 

Our major focus is on increasing local generation to reduce dependence on outside sources of energy and better serve our members with a mix of local baseload and renewable energy options. We will continue exploring local projects that align with our goals for reliable, cost-effective, and clean energy. This includes engaging with potential developers and stakeholders to bring new generation capacity online.

 

Update from Chris: March 26, 2025

Get to Know Mercuria

Key Milestones

Click each headline below to read more about each milestone

June 2, 2025

RFP Process through
The Energy Authority closes

April 1, 2026

Date of full official departure
from our restrictive 50-year power
service contract with Tri-State.

Your Questions Answered

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You can also check out the monthly updates from our CEO, Chris Hansen

January Update
February Update
March Update

The "Bridge Period" begins April 1, 2026 and last through 2028.

As we were planning our departure from Tri-State, we knew we would need to secure a supply of power to ensure reliability starting in 2026. However, we didn't want to rush into more long-term contracts. By signing this short-term agreement with Mercuria for April 2026 - 2028, we can ensure an affordable, reliable power supply for our members after our departure from Tri-State while we take our time to thoughtfully and strategically procure power for 2029 and beyond. 

Yes, we do not anticipate rate increases through 2026 to support the transition. Our focus is on securing cost-effective, renewable energy solutions that ensure stable and predictable rates for our members.

The estimated $209.7 million CTP represents a settlement of debt we are already obligated to pay, regardless of our decision to leave Tri-State. It covers the debt incurred by Tri-State when it originally expected us to remain a member for 50 years. The final amount will be determined in March 2026.

No, we would have been responsible for paying the $209.7 million for the debt incurred by Tri-State, regardless of our decision to exit the contract. This payment is related to debt Tri-State accumulated when it originally expected us to remain a member for 50 years. Our decision to exit simply triggers the settlement of this debt, but it is not an additional cost beyond what was already owed.

We are making great strides in securing financing for the CTP. We plan to take out a loan for a one-time settlement payment, which will allow us to manage the cost effectively over time. Similar to how we currently pay Tri-State monthly for the debt incurred on our behalf, we will repay the loan over time. The interest rates for the loan will be determined by Fall 2025.

We have fully secured our power supply for 10% less than what we currently pay Tri-State for the 2026-2028 bridge period through two PPAs with Tri-State, a new agreement with Mercuria, and local generation. Looking ahead, the RFP for 2028-2031 will ensure that we continue to meet our members' needs with reliable, cost-effective, and sustainable energy solutions as we move forward with our energy transition.

We will maintain strong reliability throughout the transition. While no longer a Tri-State member, we will remain a transmission customer, benefiting from Tri-State’s reliable infrastructure. We are managing the transition carefully to ensure uninterrupted service and the high level of reliability our members expect.

We will join the Southwest Power Pool (SPP) RTO on April 1, 2026, when we exit our contract with Tri-State. An RTO coordinates the efficient and reliable delivery of electricity across multiple utility systems. Joining SPP will provide us access to a competitive energy market, offering better pricing and more control over our energy future.

Yes! Check out our LPEA Fact Checker for more information on our energy transition, Board elections, the recent rate increase, and more. 

Visit the Fact Checker

Power Supply

Sunnyside Solar Panels

We're committed to ensuring reliability through forward-thinking plans, innovative programs, and diverse power supply options that adapt to the changing needs of our members and community.

  • Determine Bridge Power Supply Model 
  • Identify Purchase Power Agreement (PPAs) Opportunities
  • Sign and Execute PPAs
  • Finance Contract Termination Payment (CTP)

Power Delivery

Pagosa Springs Power Lines

We strive to deliver high-quality, uninterrupted service to our members by securing reliable transmission services and maintaining a resilient, failure-resistant electric distribution system through thoughtful design, operation, protection, and maintenance.

  • Prioritize Delivery Points
  • Southwest Power Pool (SPP) Registration
  • Acquire Substation Assets
  • Conduct Transmission Studies
  • Install Meters

Compliance

LPEA Farm Cows

We're committed to ensuring our energy future and transition meet and exceed all compliance standards by acting in the best interest of our members as we manage operations and secure resources.

  • Identify Market Requirements
  • Balancing Authority Requirements
  • Market Testing
  • Risk Policy Development