Dear LPEA Members,

April 1 marks a significant milestone: we are just one year away from a major transition that will unlock new opportunities for LPEA and our members. I want to be clear—this transition is happening, and we are not looking back. LPEA and Tri-State have mutually agreed on what our relationship will be post-2026: we will no longer be a member-owner, but a customer. Change of this scale requires careful planning and commitment, and I am proud to say that we are on track for a smooth and exciting future. As John F. Kennedy once said, “Change is the law of life. And those who look only to the past or present are certain to miss the future.”

Over the past year, we’ve made tremendous strides, and I’m continually impressed by the dedication and effort from our staff and board in managing this transition. Their hard work ensures that this process not only happens but positions LPEA for long-term stability, reliability, and flexibility in a rapidly changing energy landscape. I want to reassure you that we are continuing to work closely and collaboratively with Tri-State throughout this process. Our transition team meets regularly with Tri-State and we are committed to maintaining a positive, professional relationship. Both teams are focused on ensuring that the transition is seamless, and we appreciate the ongoing partnership as we prepare for a new energy future.

What’s Next?

The next 12 months are critical, and we are moving forward with a clear focus on:

• Requet for Proposal (RFP) Process (Spring): We will be evaluating potential new generation projects to secure the best energy mix that meets LPEA’s needs and supports long-term reliability.
• Credit Rating (Summer): Establishing our first credit rating will strengthen LPEA’s financial position.
• Financing for Contract Termination Payment (Fall): Finalizing the necessary financing for our contract termination payment.

We do not anticipate a rate increase in 2026 related to the transition. We are encouraged by the pricing we are seeing for power purchase agreements and are optimistic about securing long-term, competitive rates for our members. This transition is about setting up LPEA for long-term financial success while maintaining the reliability and value our members rely on.

A New Energy Future for LPEA

This transition is not just about changing suppliers—it’s about creating new opportunities for LPEA and our members. We are building a future where we have more flexibility in how we source energy, giving us the ability to be nimble in responding to market conditions, improve system reliability, and keep costs manageable for you, our members.

We encourage you to stay engaged, ask questions, and seek to understand how this transition benefits you. Together, we are embracing this new opportunity, and I couldn’t be more excited about what lies ahead.

Sincerely,

Chris Hansen

CEO of LPEA