The Issues…
La Plata Electric Association (LPEA) is no longer at a crossroads. The board already committed to a $209 million Contract Termination Payment to dump our member owned relationship with Tri-State G&T.
They locked us into a long term power purchase agreement with Mercuria- a massive profit driven global energy trader. Members never got a full honest accounting of the risks or rate impacts before these decisions were rammed through.
This isn’t a buyout, its a sellout…
The $209 million buyout is just the headline. Add millions in hidden legal fees and transition costs that the board still refuses to fully disclose.
We lose our Tri-State capital credits forever.
We get zero physical assets in return. Just the right to buy power on the volatile open market. Where is the complete cost projection over the next 10 to 20 years? Why only short term savings claims that ignore the rest?
LPEA’s board already hit us with a 7.72% rate hike in 2025—the biggest in its history, and more rate increases are sure to come. Other coops that left Tri-State (like United Power) saw massive rate spikes within a few years. LPEA has shown no credible proof we won’t face the same once contracted power expires, market exposure ramps up, and new transmission battery and integration costs hit.
World energy markets are volatile, obviously. So why expose us to this forther risk?Families, farmers, and small businesses can’t afford this burden, especially while CEO Chris Hansen pockets a $700,000 salary.
Still stuck paying Tri-State, but worse…
After April 1 2026 we lose member-owner status, voting rights and cooperative protections. Yet we still have to buy a chunk of our power from Tri-State at retail rates plus extra wheeling and transmission charges to use their lines.
The board likes to tout that we are going to save 10% on buying power, but they always seem to leave out all the additional costs we are going to incur once we are not a Tri-State member.
Mercuria: Volatility and greed, not stability…
Mercuria is a $174 billion global trader heavily dependent on fossil fuels they offer no stability, only market volatility. And despite all the decarbonization talk the Directors love to blather on about- the new energy mix we will be buying will have LESS renewables- yes, that is correct! This isn’t greener, it’s greedier.
Transparency failures…
In 2023, LPEA sold its 75% ownership stake in FastTrack Communications to Clearnetworx with no public disclosure of the sale price. Members were never told whether proceeds were returned to members, placed in reserves, or used elsewhere
As a cooperative, excess value belongs to the members—not management or the board, so where is our money?
We deserve answers.
Conflicts of interest…
Ted Compton, former LPEA Board President, leads the Co-op Innovation Network, which actively promotes Tri-State exits across the region, raising serious questions about divided loyalties.
John Witchel, CEO of King Energy with ties to Wunder Capital (a solar finance mega corporation) has been the leading advocate of the exit strategy while not residing fulltime in the service area.
Chris Hansen, LPEA’s CEO, is among the highest-paid cooperative executives in the region and has actively promoted a broader regional energy vision while not living in the LPEA service territory.
These relationships are clear instances of conflict of interest.
The bottom line…
This was not a member-driven decision.
It was a board-driven gamble made with member money, limited disclosure, and unresolved conflicts of interest.
We deserve full transparency, independent oversight, and straight answers—before rates rise, reserves disappear, and accountability is gone for good.