The Issues…
La Plata Electric Association is at a crossroads. The current board’s plan to spend $209 million to ditch Tri-State—a member-owned cooperative—for Mercuria, a Swiss-based, profit-driven energy trader, threatens our community with higher rates, less control, and zero accountability. This isn’t a buyout; it’s a sell-out.
The $209 million buyout price tag comes with millions more in hidden legal fees—and no clear total disclosed to members. We get no additional assets, just bigger bills, and lose millions in Tri-State capital credits. Why won’t the LPEA board tell us the full cost?
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. If they follow United Power’s post-buyout path, rates could surge another 40% in two years. Families, farmers, and small businesses can’t afford this burden—especially while CEO Chris Hansen pockets an estimated $750,000 annual salary.
Exiting Tri-State removes us as wholesale member and locks us into buying 30% of our power from them anyway, but at retail rates. Mercuria—a $174 billion global trader tied to fossil fuels —offers no stability, only market volatility. This isn’t greener; it’s greedier.
Tri-State’s cooperative model keeps costs predictable and power local—80% renewable by 2030, praised by the Sierra Club. Mercuria prioritizes shareholders (including 12% owner ChemChina) over ratepayers. This isn’t about sustainability; it’s a financier’s dream, subsidized by us.
LPEA refuses to attend Tri-State meetings (despite covered costs), and sold our 75% stake in FastTrack Communications to Clearnetworx in 2023 without revealing the price. Was it worth $10 million? $25 million? Did it need a member vote? As a cooperative, excess funds are supposed to be returned to the members, so where is our money?
We deserve answers.
Board President Ted Compton heads the Co-op Innovation Network, pushing more cooperatives to risk their financial future and leave the member owned model of Tri-State, in order to buy retail power on the open market. He claims this is about “decarbonization” but the current plan will have us purchasing MORE fossil fuel based energy than if we stayed with Tri-State.
Board member John Witchel, CEO of King Energy and tied to Wunder Capital, stands to gain if LPEA pivots to solar. It has been alleged that he is the primary advocate and driving force behind this push for the buyout. Witchel does not live in the area, primarily.
CEO Chris Hansen is using his $750,000 annual salary to prop up his own lobbyist group and seeks to convince other co-ops to sell out their own future so that he can build a new “mega grid” in the region. He also does not even live in the area.
These clear conflicts of interest beg the question- are they serving us or their own interests?