Today, La Plata Electric Association (LPEA) board members unanimously approved an agreement with Mercuria Energy America LLC — one of the world’s largest independent energy and commodity groups — securing reliable, cost-effective electricity for LPEA members through the 2026-2028 bridge period.
This agreement gives the cooperative a diversified and flexible power portfolio and, when combined with LPEA’s other power purchase agreements, will lower the blended cost of power by more than 10 percent starting in 2026 — compared to current wholesale rates. The blended cost of power refers to the cost of the electricity plus the cost of transmission of the electricity to customers.
“With this agreement, we’re already seeing the benefits of our board’s decision to pursue new power supply options, and we’re incredibly grateful for their leadership and vision,” said Chris Hansen, CEO of LPEA. “Securing all the power we need for the bridge at a cost more than 10 percent lower than our previous provider is a major win for our members.”
This marks the third power supply agreement LPEA has signed since the cooperative announced its departure from its contract with Tri-State Generation and Transmission Inc. on April 1, 2026.
Mercuria will supply the capacity needed to meet all of LPEA’s resource adequacy requirements, providing reliable energy while giving the cooperative the flexibility to adapt to evolving energy needs. Importantly, the agreement ensures fixed pricing, so members won’t experience the volatility that can come with market fluctuations.
“As we approach the one-year mark until our departure from our Tri-State contract, we continue to be pleased with the opportunities this transition is creating,” Hansen added. “We’re excited about what we’re able to deliver for our members today and the flexibility we have to explore more affordable, local generation as we shape our future energy portfolio.”
While a portion of LPEA’s energy needs will continue to be met through previously secured power purchase agreements — providing approximately 30 percent of its supply — the Mercuria agreement and LPEA’s clean, local, self-generation fills the remaining gap, offering price certainty and reliability for members.
“We’re pleased to partner with La Plata Electric Association as we work together to deliver practical, forward-looking energy solutions,” said Cody Moore, president and head of U.S. gas and power trading at Mercuria. “This collaboration reflects our shared commitment to innovation, sustainability and building a resilient energy future for the communities we serve.”
Looking ahead, LPEA will issue a request for proposals (RFP) for new energy generation projects to begin supplying power as early as Jan. 1, 2028. With the removal of previous limitations, LPEA now has full flexibility to determine its long-term energy portfolio, including increased opportunities for local and regional generation.
For more information on LPEA’s energy transition, visit lpea.coop.
