– La Plata Electric Association’s Board of Directors has approved a price reduction for power supplied from renewable resources. As of January 1, 2008, member/customers can opt to pay a premium of $0.80 per 100 kilowatt-hour block. This is down from $1.25 per 100 kilowatt-hour block.

“We continue to have tremendous interest in the voluntary program,” said Ray Pierotti, who handles the Green Power accounts for the cooperative. “In many ways we feel like reducing the price is a reward to those who have already committed to the program, and the lower price may make it more accessible to a broader customer base.”

The price reduction comes as a result of Tri-State Generation & Transmission’s revised renewable energy program. Tri-State will now charge its customers, such as LPEA, daily market prices for what it purchases, which currently is approximately $0.40 for each 100 kilowatt-hour block. Because the market price fluctuates and LPEA does not want to continually change the rate to its volunteer green power customers, the LPEA board has opted to add an additional $0.40 to the premium to absorb those market fluctuations, plus to generate funds for local renewable programs and purchase locally produced renewable power.

“The board wants to support and encourage the advancement, development, and installation of renewable generation projects in our service territory and region,” said Greg Munro, LPEA CEO. “One way we will attempt to accomplish this is by utilizing voluntary renewable generation funds from participating members – more commonly known as our Green Power program.”

Currently, Tri-State’s “green power” is generated from wind farms in Wyoming, plus some small hydro and biomass. Though some of these dollars customers spend on green power leave the community, LPEA member/customers who participate in the program are supporting the local cooperative, local renewable purchases, local renewable projects – as well as local jobs, according to Munro. Hope is that the extra green power dollars generated (above market prices) will help LPEA support more renewable projects in the region, so that in future years more of these energy dollars can remain in the communities served by the cooperative.

Initially, the LPEA funds will support rebates for those who install renewable generation, market prices to purchase power from LPEA’s  net metered accounts (those customers generating power and feeding it back to the grid) and purchase of local Renewable Energy Certificates (RECs). Regarding the latter, if LPEA secures more local renewable energy than it needs to meet the new Colorado Statue requirements, LPEA can sell the local RECs to utilities outside LPEA’s territory, thus bringing more dollars to the local communities.

“The renewable energy programs are all a work in progress, and still new to many people,” said Munro, explaining that the board had been approached by special interest groups about making the green power program mandatory for all rate payers. “The board believed that it was not appropriate or fair to make the premium rate-based, so it will remain voluntary.”

Beyond the local effort, an anticipated part of Tri-State’s new renewable program, expected to be finalized after the first of the year, will be to offer matching funds for local renewable energy projects. LPEA would capitalize on this availability, applying for Tri-State’s matching funds for the renewable projects funded by the new green power dollars.

“We want to support new, renewable generation projects,” said Munro. “There are a couple of solar farms in the exploratory stage, and some local small hydro projects and a biomass project are all on the drawing board. Plus we are looking at ways to install photovoltaic panels at schools to help with their energy bills. The dollars will help fund specific projects – not go to administrative costs.” 

Furthering efforts, LPEA also spends approximately 1 percent of its revenues, or around $800,000 per year, on conservation, energy efficiency and demand side management programs. These are incorporated into the standard rates and thus supported by the entire member/customer base. One such example is the Change a Light program, promoting replacement of incandescent light bulbs with energy efficient compact fluorescents.

Because LPEA’s Green Power purchase program is voluntary, LPEA members must specifically request to purchase blocks. To sign up, visit www.lpea.coop/green_power on the web, or in person at an LPEA office either in Durango (45 Stewart Street) or Pagosa Springs (603 S. 8^th St.), or call 970.247.5786.

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