Our Board approved a Tri-State pass-through rate increase at the December 13th board meeting that will be effective for LPEA members on January 1, 2024. Our wholesale power supplier, Tri-State, has imposed a 6.2% rate increase on LPEA, which will need to be passed through to our members. The LPEA membership will see an average increase of 4%, but the actual percentage per member will vary by account based on the specific rate schedule and individual usage patterns.
We know it’s concerning to hear electricity rates are going up. But we want you to know there are options to take control and likely lower your monthly bill. LPEA’s optional Time-of-Use rate can help combat rising costs by charging lower rates during "off-peak" periods.
Because of impressive financial stewardship at all levels of our organization, LPEA will not need to raise our rates for a third year in a row, even though inflation has increased significantly. I’m very proud of our staff’s efforts and want to thank everyone for their role in controlling costs and making smart decisions on where our members’ dollars go.
Sincerely,
Jessica Matlock
| 2020 | 2024 | |
| Base Charge | $21.50 / month | $23 / month |
| Peak Charge (4pm to 9pm) | $1.50 | $3.30 |
| Energy | $0.1256 | $0.1206 |
Standard rate for single phase home, farm, and business use. Rate Schedule (this is what you will see on your bill): 10 EZ10, 20 EZ20
| 2020 | 2024 | |
| Base Charge | $21.50 / month | $23 / month |
| Demand-Charge | $5.15 per kW | $8 per kW |
| Energy Charge per kWh | $0.1070 | $0.1020 |
A single-phase home, farm, and business use requires over 50 kW of capacity. Rate Schedule (this is what you will see on your bill): 10D/20D
| 2020 | 2024 | |
| Base Charge | $20 / month | $21.50/ month |
| On-Peak Charge (per kWh) | $0.2561 | $0.2714 |
| Off-Peak Charge (per kWh) | $0.0620 | $0.0620 |
To decrease this peak demand, LPEA’s optional Time-of-Use rate charges members different rates for their power based on the time of use. Off-Peak hours from 10 p.m. to 6 a.m. and 9 a.m. to 5 p.m.. Also, all day Sunday, Thanksgiving Day and Christmas Day. Rate Schedule (this is what you will see on your bill): 15/16 EZ 15/16
| 2020 | 2024 | |
| Demand-Charge | $14.07 per kW | $15.93 per kW |
| Energy Charge per kWh | $0.135 | $0.135 |
The energy costs needed to supply the appropriate amount of horsepower required to pump water throughout the growing season. Rate Schedule (this is what you will see on your bill): 40
| 2020 | 2024 | |
| Base Charge | $100 / month | |
| On-Peak Charge (per kWh) | $0.2714 | |
| Off-Peak Charge (per kWh) | $0.0620 |
Commercial Rates
| 2020 | 2024 | |
| Base Charge | $50 / month | $50 / month |
| Demand Charge | $1 per kW | $3.25 per kW |
| Energy Charge per kWh | $0.115 | $0.1100 |
A larger meter for commercial purposes, typically for anticipated higher demand than a smaller meter serving the business property location. Meters are sized according to the electrical needs of the individual businesses at specific locations and can be upgraded or downgraded for a cost. Rate Schedule (this is what you will see on your bill): 21
| 2020 | 2024 | |
| Base Charge | $100 / month | $100 / month |
| Demand Charge | $11.63 per kW | $15.21 per kW |
| Energy Charge per kWh | $0.0722 | $0.0672 |
Three-Phase service for commercial accounts to meet electrical load power requirements. Rate Schedule (this is what you will see on your bill): 30
| 2020 | 2024 | |
| Base Charge | $50 / month | $50 / month |
| Demand Charge | $6.15 per kW | $7.03 per kW |
| On-Peak Charge (per kWh) | $0.2050 | $0.2132 |
| Off-Peak Charge (per kWh) | $0.0590 | $0.0590 |
A larger, 3-phase meter on Time-of-Use rates. On-Peak hours are 2 p.m. to 8 p.m. Monday through Saturday. Off-Peak hours are 8 p.m. to 2 p.m. Monday through Saturday, and all day Sundays, Thanksgiving, and Christmas. Rate Schedule (this is what you will see on your bill): 28/29
| 2020 | 2024 | |
| Base Charge | $9,982 per month | $10,382 per month |
| On-Peak Charge (per kWh) | $0.0940 | $0.1132 |
| Off-Peak Charge (per kWh) | $0.0630 | $0.0630 |
A custom electric rate for our ski resorts allows a more cost-effective operation choice when manufacturing snow. Off-Peak hours from 10 p.m. to 6 a.m. and 9 a.m. to 5 p.m. Also, all day Sunday, Thanksgiving Day, and Christmas Day. Rate Schedule (this is what you will see on your bill): 34
| 2020 | 2024 | |
| Base Charge | $500 / month | $500 / month |
| Coincident Demand per KW per month | $19.34 | $23.84 |
| Energy Charge (per kWh) | $0.0467 | $0.0434 |
Optional rate for industrial customers greater than 10 MW who take service directly from LPEA transmission facilities at standard transmission voltage. Rate Schedule (this is what you will see on your bill): 36
| 2020 | 2024 | |
| Base Charge | $175 / month | $175 / month |
| Energy Charge (per kWh) | $0.156 | $0.1624 |
The sale of solar energy produced, generated, and consumed between a member and utility provider. Rate Schedule (this is what you will see on your bill): 41
| 2020 | 2024 | |
| Service Light (Approx. 5,200 Lumens): | $12.09/ month | $12.57/ month |
| Small Light (Approx. 5,800 Lumens): | $14.27/ month | $14.84/ month |
| Medium Light (Approx. 9,000 Lumens): | $22.48/ month | $23.38/ month |
| Large Light (Approx. 12,000 Lumens): | $31.09/ month | $32.33/ month |
Rate charge for the rental and electricity usage of a street or security or lights. Rate Schedule (this is what you will see on your bill): 50
| 2020 | 2024 | |
| Base Charge | $20 / month | $21.50/ month |
| On-Peak Charge (per kWh) | $0.2561 | $0.2714 |
| Off-Peak Charge (per kWh) | $0.0620 | $0.0620 |
To decrease this peak demand, LPEA’s optional Time-of-Use rate charges members different rates for their power based on the time of use. Off-Peak hours from 10 p.m. to 6 a.m. and 9 a.m. to 5 p.m.. Also, all day Sunday, Thanksgiving Day and Christmas Day. Rate Schedule (this is what you will see on your bill): 15/16 EZ 15/16
| 2020 | 2024 | |
| Base Charge | $100 / month | $100 / month |
| Demand Charge | $6.60 per kW | $7.85 per kW |
| On-Peak Charge (per kWh) | $0.0870 | $0.0905 |
| Off-Peak Charge (per kWh) | $0.0609 | $0.0609 |
Standard rate for commercial and industrial customers greater than 50 kVA and 50 kW who take service directly from an LPEA substation at a primary distribution voltage level. Rate Schedule (this is what you will see on your bill): 31
Types of Charges
Peak Power
The Peak Power charge is based on the single, highest hourly kilowatt load used by the customer between the hours of 4:00 pm - 9:00 pm each month.
Base Charge
LPEA separates the base charge line item from the energy charges for transparency and to give members more control over their usage.
What does this charge cover?
This is the minimal amount required to have active service.
How is it calculated?
This is determined based on the amount of infrastructure and services needed to deliver the required power from our power provider (Tri-State) to the members in each rate class.
What’s changing?
In general, rates classes will see an increase.
Energy Charge
What does this charge cover?
The base cost per kilowatt hour.
How is it calculated?
This is based on what Tri-State charges LPEA to deliver electricity to the membership
What’s changing?
In general, rate classes will see a decrease.
Demand Charge
What does this charge cover?
Charge based on your meter size and type, usually larger meters with more demand requirements than an average residential meter.
How is it calculated?
This charge is based on the member’s once-per-month highest kilowatt hour over an entire billing cycle to accommodate the member’s individual electrical needs at any given time.
What’s changing?
In general, rate classes will see an increase. Get ideas on how to lower your energy bill by checking out our Time-of-Use rate below.
Frequently Asked Questions
Tri-State is a power supply cooperative of 45 members, operating on a not-for-profit basis, including 42 utility electric distribution cooperative and public power district members in four states. LPEA is contractually bound to purchase 95% of its power supply from Tri-State and delivers it to your home or business across our electric distribution network.
LPEA wants local control over its own rates or to seek new clean energy opportunities and to bring those benefits to the local community. Staying with Tri-State creates future risk for LPEA’s members: Tri-State proposed rate increases, created future energy rate uncertainty through a new rate structure, was downgraded by its financial rating agencies, struggled to make margins, and has had difficulty adapting to FERC regulation. LPEA will take responsibility for its own rates, resiliency, and reliability to create better certainty for LPEA members.
Using the FERC-approved exit fee formula, LPEA has been able to estimate a range of what that exit fee might be around $209.7 million, and LPEA’s Board used that estimate range in deciding to withdraw entirely from Tri-State. The final exit fee has not been determined and will be due to Tri-State in March of 2026.
LPEA’s future electric rates will depend on the size of the exit fee paid and the cost of the replacement energy resources LPEA will procure to replace the Tri-State contract. The long-term benefit to members will be stability and predictability because LPEA will have control over its own power supply instead of being tied to Tri-State's unpredictable rate formula.
Yes. Tri-State’s limits on local generation prevent LPEA from adopting energy storage and other distributed energy resources that over time will increase the ability of the LPEA distribution grid to absorb more rooftop solar generation from our homes and businesses. LPEA will also have opportunities to add solar farms and community solar gardens, like Sunnyside, to encourage more solar adoption.
This case is on-going and nothing has changed. By refusing to supply LPEA with a fair and equitable exit charge from Tri-State, LPEA has been restricted from fully pursuing and developing other low-cost, reliable, baseload energy, and renewable energy opportunities that would economically benefit our region.
LPEA’s departure guarantees we will meet state and federal clean energy goals because we will be self-regulated and able to implement solutions.
There have now been three separate partial contract ideas – none ever came into fruition or became actual options for LPEA to consider. Tri-State has struggled to craft an option that satisfies Tri-State, the partial leaving members, and the full remaining members.
Questions and Comments
Fill out the form below to submit your questions.
Members may submit comments about the changes through a written comment to 45 Stewart Street, Durango, Colorado, 81303, or by email to memberservices@lpea.coop.