La Plata Electric Cuts Costs 20% While Boosting Renewables to 50% After Tri-State Exit

**TL;DR** La Plata Electric Association significantly reduced energy costs and boosted its renewable energy portfolio following its power supply contract exit. This strategic shift positions LPEA for greater stability and environmental impact.

Energy markets face volatility, frequently highlighted by international events impacting fossil fuel prices. Renewable sources like wind and solar offer an alternative to these market fluctuations. Once constructed, these systems operate with zero fuel costs, avoiding the fluctuating expenses tied to mined or drilled fuels.

This inherent stability provides a distinct economic advantage. It makes them some of the cheapest electricity sources even after federal tax credit changes. However, construction costs for renewable projects can still be affected by global material prices and supply chain issues.

Federal agencies, including the Department of Defense and the Department of Interior, have also introduced permitting delays for some wind and solar developments. Such obstacles can prolong project timelines and raise development costs.

Following its April 1 departure from its previous power supply contract, La Plata Electric Association (LPEA) cut energy costs by over 20%. Concurrently, LPEA increased its share of renewable energy from 30% to 50%. This demonstrates a swift transition towards a cleaner, more cost-effective energy mix.

The long-term economic appeal of renewables is clear. A local solar company’s slogan notes that solar provides "free fuel for the next 4 billion years," mirroring the sun's expected lifespan. This concept has already been proven by other co-ops.

Kit Carson Electric Cooperative in Taos, for example, now meets all its daytime electricity demand with locally built solar power. It achieved this milestone a decade after exiting its own contract with Tri-State.

This shift provides LPEA with greater financial flexibility. Reduced energy procurement costs allow LPEA to better manage other inflationary pressures, such as labor and equipment expenses, without passing those increases directly to members. The expanded renewable portfolio supports environmental goals and positions LPEA to explore further local energy generation opportunities.

This trend of cooperatives seeking independent, renewable-focused power supply is gaining momentum. LPEA is hosting a "CommunityPower X: Regional Energy Forum" on April 23, where members can learn from cooperatives like Kit Carson Electric Cooperative and Delta-Montrose Electric Association, who have already navigated similar transitions. The forum will highlight practical experiences and further implications of these strategic energy shifts.

The ongoing development and adoption of local renewable energy sources by cooperatives across the region bear watching for their long-term economic and environmental impacts.