I have read that the La Plata Electric Association board has decided to end, at significant cost, a contract with Tri-State Generation and Transmission Association. Tri-State has provided totally reliable electricity at a reasonable rate for decades and is committed to continue through the end of the contract in 2050.
Even though LPEA has never purchased power on its own, it now thinks it is smart enough to play the volatile wholesale power markets indefinitely into the future to match Tri-State’s reliability. Hopefully, at a lower cost adequate to pay for getting out of the contract.
The generation and transmission of electricity is changing because of greater demand and different sources of electricity, which will cause the wholesale power markets to remain volatile. LPEA is giving up certainty for uncertainty.
Steve Harris
Durango
