Fitch Ratings Assigns A+ Credit Rating to LPEA, Affirming Strong Financial Position
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First-Ever Credit Rating Highlights LPEA’s Member-Focused Strategy 

Durango, Colo. (November 10, 2025) – Fitch Ratings has assigned a first-time Long-Term Issuer Default Rating (IDR) of ‘A+’ with a Stable Outlook to La Plata Electric Association, Inc. (LPEA), reflecting the cooperative’s strong financial health, prudent management, and steady operational performance. 

“Our focus has always been on serving our members and our community first,” said Nicole Pitcher, President of the LPEA Board of Directors. “This rating affirms the strength of the strategic decisions made by LPEA’s leadership and the disciplined execution of our staff. Together, we continue to demonstrate that a small rural cooperative can deliver reliable, forward-thinking service while maintaining strong financial stewardship.” 

The ‘A+’ rating recognizes LPEA’s strong utility fundamentals and Fitch’s expectation that the cooperative will maintain its solid financial profile following its planned exit from Tri-State Generation and Transmission Association (Tri-State) in April 2026. Upon exit, LPEA will make a contract termination payment (CTP) to Tri-State to account for its share of remaining power purchase and debt obligations. 

“Receiving our first-ever credit rating, and achieving an A+, is a major milestone for LPEA,” said Chris Hansen, LPEA Chief Executive Officer. “It underscores the strength of our financial and operational foundation as we transition toward energy independence and increased local generation for our members.” 

Fitch highlighted LPEA’s: 

  • Service territory with strong, growing demand characteristics. 
  • Low operating costs that may decline further as LPEA transitions to a more diversified and locally focused power supply portfolio. 
  • Prudent capital investments that sustain and expand system reliability and capacity. 
  • Effective management of its power supply transition to ensure a diverse, cost-competitive resource mix. 

Fitch also assessed LPEA’s revenue defensibility as “very strong,” citing the cooperative’s role as the sole electricity provider in an economically sound region with a steadily growing member base.  

“From a financial perspective, this rating confirms that our disciplined approach to capital investment, cost control, and strategic planning is paying off,” said Patrick Berry, LPEA Chief Financial Officer. “It positions us well to access cost-efficient financing and to deliver long-term value for our membership.” 

Additionally, Fitch recognized that LPEA’s rates are highly affordable and have become increasingly competitive with other providers across Colorado, while the cooperative’s overall financial profile remains strong. 

The A+ credit rating benefits LPEA’s members and communities by helping the cooperative secure lower borrowing costs and more favorable financing terms. This strong financial position supports continued investment in reliability improvements, wildfire mitigation, and grid modernization, keeping power affordable and infrastructure resilient for years to come. 

Additional information is available on www.fitchratings.com.  

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