As the clock struck midnight Wednesday, La Plata Electric Association officially separated from Tri-State Generation and Transmission, its wholesale energy supplier for the past three decades.
There was no dramatic switch ‒ no sparks, flashing lights or even a flicker.
Instead, the transition was completed through months of paperwork leading up to the exit. That, and some minor engineering tweaks to LPEA’s infrastructure, said Chris Hansen, the co-op’s CEO.
“There is no big red lever or giant button that I push,” Hansen said. “The electricity is basically going to flow on the same wires as it did before the transition.”
Even without the theatrics, the co-op’s exit is truly momentous.
“This is the biggest day in our history since the co-op was founded,” Hansen said.
LPEA has purchased power from Tri-State since 1992 and serves about 37,000 homes and businesses, according to an April 1 news release. The co-op’s board voted in 2024 to exit its 2007 contract with Tri-State, which was set to end in 2050.
The change brings a 20% reduction in greenhouse gas emissions, Hansen said.
“We have significantly reduced our emissions with this change,” he said. “We were about 30% decarbonized in the Tri-State system, and as of April 1, we are 50% decarbonized. An important piece of this transition is the ability to more rapidly decarbonize.”
At the same time, leaving Tri-State brings a 10% reduction in wholesale power costs, according to an LPEA news release. That reduction comes despite higher transmission and generation costs tied to tariffs and inflation, as well as the nearly $70 million early exit fee the cooperative must pay to Tri-State.
“We have the increased costs of operating and maintaining our distribution system, and we have the cost of covering our debt payments for our contract termination payment,” Hansen said. “So we have to incorporate those into our financial model.”
The shift is intended to give LPEA greater energy independence.
In 2016, the New Mexico-based Kit Carson Electric Cooperative set a precedent as the first cooperative to successfully leave Tri-State Generation and Transmission Association. Colorado-based cooperatives Delta-Montrose Electric Association, United Power and Mountain Parks Electric followed in 2020, 2024 and 2025, respectively.
Several other cooperatives – including Chimney Rock Public Power District, Panhandle Rural Electric Membership Association, Roosevelt Public Power District, Jemez Electric and Wheat Belt Public Power District – have recently issued conditional notices of withdrawal in recent months.
“This gives us a chance to really cooperate closely with our neighbors,” Hansen said. “I’m really excited to enhance that with our neighbors to the south – Farmington in particular – who will now be in the same grid as we are.”
Going forward, LPEA members can expect “continued investment in local energy resources, expanded programs to manage energy use and costs, and a system designed to adapt to the region’s evolving needs,” the release said.
LPEA will be hosting a member-focused energy forum, CommunityPowerX: The Regional Energy Future Forum, from 6 to 7:30 p.m. April 23 at the Durango Arts Center. The transition will be discussed at the event, the release said.
Tickets are $5 per seat, and reservation fees will be donated to LPEA’s Round Up Foundation.
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