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LPEA has achieved a significant milestone in its energy transition with the completion of the settlement agreement with Tri-State. In addition to finalizing the settlement, LPEA and Tri-State jointly filed for dismissal of the pending lawsuit in La Plata County District Court on January 29, 2025, reinforcing both parties’ commitment to a strong working relationship moving forward. This follows the November 2024 announcement of the term sheet, which outlined key components of the agreement, including two power purchase agreements (PPAs), and the sale of utility assets from Tri-State to LPEA. LPEA will also receive transmission through the Open Access Transmission Tariff (OATT) from Tri-State.
“We’re excited to move forward in our relationship with Tri-State, now as a customer," said LPEA CEO Chris Hansen. "This agreement positions us for success as we build our energy future with members. The LPEA team will continue to deliver reliable, low-cost power and we are confident that the future of LPEA is brighter than ever."
The settlement agreement defines aspects of LPEA’s relationship with Tri-State post-departure. Effective April 1, 2026, LPEA will be a customer through two PPAs, one providing up to 40 megawatts (MW) of firm capacity and another for as available 40 MW of energy from Tri-State's Dolores Canyon Solar Project, located in Southwest Colorado. These agreements were initially announced in the term sheet and will represent 30% of LPEA’s energy resource mix through December 31, 2033.
“This has been a true team effort, and it's a testament to the hard work and collaboration from both sides," added Hansen. "We’re proud of the way we have worked together. It reflects our shared commitment to finding solutions that serve our members.”
With this agreement in place, LPEA is now firmly focused on securing a diverse and sustainable energy portfolio that will meet the long-term needs of its members and ensure a resilient energy future.
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