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

**TL;DR:** La Plata Electric cut costs over 20% and doubled its renewable share to 50% after exiting its Tri‑State power supply contract on April 1, while Kit Carson Electric Cooperative now supplies 100% of its daytime load with local solar.

**Context** La Plata Electric Association ended its long‑term contract with Tri‑State Generation and Transmission Association on April 1. The move was driven by rising wholesale prices and a desire for greater control over its power mix. Renewable generation has become the cheapest source of electricity because sunlight and wind carry zero fuel cost, insulating utilities from volatile oil markets and geopolitical shocks.

**Key Facts** After the exit, La Plata reported a reduction in energy costs of more than 20% and increased the renewable portion of its supply from 30% to 50%. A local solar company uses the slogan “free fuel for the next 4 billion years,” referring to the sun’s expected lifespan. Kit Carson Electric Cooperative, which left Tri‑State a decade ago, now meets 100% of its daytime electricity demand with solar projects built in its service area.

**What It Means** The cost savings give La Plata flexibility to absorb rising labor and equipment expenses without raising rates for members. A higher renewable share also reduces exposure to fuel‑price swings and aligns with state clean‑energy goals. Kit Carson’s experience shows that a cooperative can achieve full daytime coverage with locally owned solar, offering a model for others considering similar exits. The upcoming CommunityPower X: Regional Energy Forum on April 23 will feature Kit Carson and Delta‑Montrose, providing a chance to compare outcomes and discuss next steps.

Watch for how La Plata’s adjusted budget influences future rate cases and whether more cooperatives follow the Tri‑State exit trend.