We are taking back the reins of our energy future.
The power supply is where electricity comes from to power our homes, businesses, and lives. It's the source of the electricity that LPEA delivers to its members. Until April 1, 2026, 95% of LPEA's power supply will come from Tri-State Generation & Transmission. This departure will aid LPEA's efforts toward the advancement of affordable, clean energy initiatives, increasing resiliency, and expanding local generation.
New! Powering Ahead with Mercuria
A Note to Our Members
As we approach our 85th year as a cooperative, we have thought long and hard about what we want our future to look like. We want to provide our members with safe, reliable power from sources they can be proud of, and we are preparing for the changing landscape in which we will provide electricity and services.
After reviewing our financial outlook and the energy market forecast, our board of directors voted to leave our wholesale power contract with Tri-State that was valid through 2050. We will be fully out of the contract on April 1, 2026. By leaving our contract, we will be able to take control of our energy future instead of leaving the decisions to 41 Tri-State board members.
We want our members to decide their own energy futures, not have those futures decided for us on the Front Range and believe we can achieve this by working with our community. We have a proven record of partnering with other utilities, regional companies, Native American tribes, and community partners to diversify our electricity options. By returning decision-making back to the local level, we will have autonomy to make timely decisions and source solutions aligned with our community's unique needs. This step is just the beginning of our journey toward operating as an independent cooperative, focusing on the growing needs of our members.
For years, we have tried to work collaboratively with Tri-State to provide our members with more local control over their power supply and power costs while also meeting our energy objectives. We have lost opportunities to bring clean energy projects, jobs, and investment to southwestern Colorado including local generation opportunities our members have expressed interest in.
Over the next two years we will investigate ways to take advantage of available power suppliers while also engaging members who want a more active role in their power decisions. The benefit over time will be rate stability and reduced carbon emissions.
Graham Smith, Interim CEO and General Counsel
March 25, 2024
Areas of Focus
Member Engagement
We will identify meaningful opportunities to engage with members, while offering education and gathering valuable feedback.
- Monthly Emails
- Focus Groups
- Town Halls
- Member Surveys
Power Supply
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 - DONE
- Identify Purchase Power Agreement (PPAs) Opportunities
- Sign and Execute PPAs
- Finance Contract Termination Payment (CTP)
Power Delivery
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
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
Frequently Asked Questions
Tri-State is a power supply cooperative of 45 members, operating on a not-for-profit basis, including 41 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 not be calculated until 30 days before the April 1, 2026, exit.
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.
LPEA’s departure provides for the self-regulation that is needed to allow us to implement the variety of solutions required to meet state, federal, and LPEA clean energy goals.
Tri-State has struggled to craft an option that satisfies Tri-State, the partial leaving members, and the full remaining members. There have now been three separate partial contract ideas from Tri-State, including the recent Bring Your Own Resource (BYOR) plan. LPEA was aware of the BYOR plan before it filed to leave from Tri-State.
Resource Adequacy
On April 1, 2024 Tri-State submitted its Annual Resource Adequacy (RA) Report to the Colorado Public Utilities Commission (PUC), pursuant to C.R.S. § 40-43-104(1)(a). The report is publicly available here. Page 1 of Tri-State’s report indicates: “Tri-State’s 2024 RA Annual Report has been made available on Tri-State's website, pursuant to the requirement at C.R.S. § 40-43-104(3). Page 3 of Tri-State’s report indicates: “Tri-State’s report covers its Members as Load Serving Entities (LSEs), for the portion of their loads served by Tri-State, pursuant to C.R.S. § 40-43-104(2).”
Power Supply 2024-2026
Notice of Unconditional withdrawal from Tri-State
Entered into bridge power agreement with Mercuria
LPEA departs from Tri-State and continues to deliver safe, reliable electricity.