Dear LPEA Member,
Like many businesses, LPEA faces rising costs—fuel, supplies, vehicles, and labor—all of which impact your bill. While we’ve worked to control expenses, only 20% of our costs are within our control, and we can no longer absorb these increases.
To maintain reliable service, LPEA’s Board of Directors and leadership team are proposing an average rate increase of 7.72%, effective April 1, 2025. Actual increases will vary by member based on rate schedule and actual usage, and residential members will see an average increase of $7.54 on their monthly bill.
The proposed rates, developed through a third-party cost-of-service study, reflect the true cost of delivering electricity. You can review them within this mailed packet and below.
The Board will consider final approval of the new rates on March 26, 2025. We value your input— please submit written feedback by March 16, 2025. While rate adjustments are never easy, they are necessary to address inflation and ensure the long-term sustainability of our electric system. Thank you for your engagement in this important process.
Sincerely,
Chris Hansen, CEO, LPEA
| 2024 | 2025 Proposed | |
| Base Charge | $23 / month | $25.30 / month |
| Peak Charge (4pm to 9pm) | $3.30 / kW / month | $5.73 / kW / month |
| Energy Charge per kWh | $0.1206 / kWh | $0.1156 / kWh |
Rate Schedule: A-10
Rate Description (on your bill): General Service
Standard rate for single phase home, farm, and business use.
| 2024 | 2025 Proposed | |
| Base Charge | $23 / month | $25.30 / month |
| Demand-Charge | $8 per / kW / month | $11.68 / kW / month |
| Energy Charge per kWh | $0.1020 / kWh | $0.0970 / kWh |
Rate Schedule: GSD-10
Rate Description (on your bill): Large Single Phase
A single-phase home, farm, and business use requires over 50 kW of capacity.
| 2024 | 2025 Proposed | |
| Base Charge | $21.50 / month | $25.30 / month |
| On-Peak Charge (per kWh) | $0.2714 / kWh | $0.2828 / kWh |
| Off-Peak Charge (per kWh) | $0.0620 / kWh | $0.0690 / kWh |
Rate Schedule: RTOU-15
Rate Description (on your bill): Residential Time-of-Use (General Service Time-of-Use)
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.
Commercial Rates
| 2024 | 2025 Proposed | |
| Base Charge | $50 / month | $55 / month |
| Demand Charge | $3.25 / kW / month | $6.23 / kW / month |
| Energy Charge per kWh | $0.1100 / kWh | $0.1050 / kWh |
Rate Schedule: B2-21
Rate Description (on your bill): Small Commercial Three Phase (General Service Three Phase)
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. R
| 2024 | 2025 Proposed | |
| Base Charge | $21.50 / month | $25.30 / month |
| On-Peak Charge (per kWh) | $0.2714 / kWh | $0.2828 / kWh |
| Off-Peak Charge (per kWh) | $0.0620 / kWh | $0.0690 / kWh |
Rate Schedule: CTOU-24
Rate Description (on your bill): Small Commercial Time-of-Use
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.
| 2024 | 2025 Proposed | |
| Base Charge | $100 / month | $100 / month |
| Demand Charge | $15.21 / kW / month | $18.34 / kW / month |
| Energy Charge per kWh | $0.0672 / kWh | $0.0700 / kWh |
Rate Schedule: LP-30
Rate Description (on your bill): Large Commercial (Large General Service)
Three-phase service for large commercial accounts to meet electrical load power requirements.
| 2024 | 2025 Proposed | |
| Base Charge | $50 / month | $55 / month |
| Demand Charge | $7.03 / kW / month | $7.71 / kW / month |
| On-Peak Charge (per kWh) | $0.2132 / kWh | $0.2345 / kWh |
| Off-Peak Charge (per kWh) | $0.0590 / kWh | $0.0650 / kWh |
Rate Schedule: B5-28
Rate Description (on your bill): Three Phase Time-of-Use
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.
| 2024 | 2025 Proposed | |
| Base Charge | $100 / month | $150 / month |
| On-Peak Charge (per kWh) | $0.2714 / kWh | $0.2828 / kWh |
| Off-Peak Charge (per kWh) | $0.0620 / kWh | $0.0650 / kWh |
Rate Schedule: EV-28
Rate Description (on your bill): Three-Phase EV Time-of-Use
| 2024 | 2025 Proposed | |
| Base Charge | $100 / month | $1,300 / month |
| Demand Charge | $7.85 / kWh / month | $7.18 / kWh / month |
| On-Peak Charge (per kWh) | $0.0905 / kWh | $0.1100 / kWh |
| Off-Peak Charge (per kWh) | $0.0609 / kWh | $0.0600 / kWh |
Rate Schedule: LP-31
Rate Description (on your bill): Primary Service (Commercial Large Primary service)
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.
| 2024 | 2025 Proposed | |
| Base Charge | $10,382 / month | $11,420 / month |
| On-Peak Charge (per kWh) | $0.1132 / kWh | $0.1264 / kWh |
| Off-Peak Charge (per kWh) | $0.0630 / kWh | $0.0690 / kWh |
Rate Schedule: SM-34
Rate Description (on your bill): Snowmaking (Snowmaking Time-of-Use)
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.
| 2024 | 2025 Proposed | |
| Base Charge | $500 / month | $1,300 / month |
| Coincident Demand per KW per month | $23.84 / kW / month | $27.38 / kW / month |
| Energy Charge (per kWh) | $0.0434 / kWh | $0.0445 / kWh |
Rate Schedule: TCP-36
Rate Description (on your bill): Transmission Coincident Peak
Optional rate for industrial customers greater than 10 MW who take service directly from LPEA transmission facilities at standard transmission voltage.
| 2024 | 2025 Proposed | |
| Demand | $15.93 / kW / month | $19.74 / kW / month |
| Energy Charge per kWh | $0.135 / kWh | $0135 / kWh |
Rate Schedule: C-40
Rate Description (on your bill): Irrigation
The energy costs needed to supply the appropriate amount of horsepower required to pump water throughout the growing season.
| 2024 | 2025 Proposed | |
| Base Charge | $175 / month | $200 / month |
| Demand | - | $10.00 / kW / month |
| Energy Charge (per kWh) | $0.1624 / kWh | $0.1311 / kWh |
Rate Schedule: SR-41
Rate Description (on your bill): Sale for Resale
The sale of solar energy produced, generated, and consumed between a member and utility provider.
| 2024 | 2025 Proposed | |
| Service Light (Approx. 5,200 Lumens): | $12.57 / month | $12.57 / month |
| Small Light (Approx. 5,800 Lumens): | $14.84 / month | $14.84 / month |
| Medium Light (Approx. 9,000 Lumens): | $23.38 / month | $23.38 / month |
| Large Light (Approx. 12,000 Lumens): | $32.33 / month | $32.33 / month |
Rate Schedule: SL-50
Rate Description (on your bill): Street Lighting (Street and Security Area Lighting)
Rate charge for the rental and electricity usage of a street or security or lights.
| 2024 | 2025 | |
| Pole Attachment Rate (Per attachment, per year) |
$16.79 | TBD |
| 2025 | |
| Dark Fiber Lease Rate (Per fiber, per mile, per year) |
$546.36 |
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.
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
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.
Frequently Asked Questions
The 2025 rate tariff proposal is published for public comment at the bottom of this page.
The public will have until March 16, 2025 to submit written comments on the rate design proposal.
The Board will meet on March 26, 2025 to cast the final vote on the 2025 rate tariff.
The new rates will go into effect April 1, 2025.
These rates will be applied to your April 2025 usage and will first be reflected on the bill you receive in May 2025.
Yes. Our friendly and knowledgeable Member Service Representatives are available Monday through Thursday to help you understand your electric bill and find new ways to save on your energy costs.
Call them at: 970-247-5786
Email them at: msr@lpea.coop
2025 Rate Changes
After thorough consideration and analysis, the LPEA Board of Directors has approved an average rate increase of 7.72%, effective April 2025. This adjustment is essential to address inflationary impacts from recent years and to secure the long-term sustainability and reliability of our electric system as we plan for the future.
What does this mean for your electric bill?
We expect to be able to share the specific rate details, including average rate increases by rate schedule, in early 2025. An independent, third-party cost-of-service study is being conducted to inform the final rate design.
What does this mean for the community?
This rate adjustment was approved along with LPEA's 2025 budget which focuses on member programs and strengthening the reliability and resiliency of our electric grid.
- Grid modernization: We are working to ensure that we are able to support new technologies as they become more accessible to our members, including investigating options to address the solar moratorium.
- Grid resiliency: We are investing in measures to ensure our community can withstand challenges like extreme weather, fire risk, and other natural disasters.
- Fire mitigation: We are allocating funds specifically for critical fire mitigation initiatives to protect both the grid and our members.
- Member programs: We are continuing to offer rebates and encourage our members to adopt new renewable energy technologies.
What does this mean for the future?
A component of this rate adjustment does include preparing for the contract termination payment to Tri-State in 2026. Our goal is to manage costs and do everything we can to minimize the impact to our members as we prepare for our energy transition.
We’re committed to transparency and will share details on how this adjustment will impact your bill once our ongoing cost-of-service study is complete.
—The LPEA Team
Rising Cost of Utility Equipment and Infrastructure
Questions and Comments
Fill out the form below by March 16, 2025 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.