At its January 12 regular board meeting, the MPE Board of Directors adopted a motion authorizing General Manager Mark Johnston to inform Tri-State Generation and Transmission Association of its intent to withdraw from its all-requirements wholesale power contract.
For decades, Tri-State has been MPE’s primary power supplier. Under their existing contract, MPE is required to purchase more than 90 percent of the electricity it delivers to its consumers from Tri-State. Now, MPE will secure a new agreement with an alternative power supplier.
“In this constantly evolving wholesale electricity market, Mountain Parks Electric has a fiduciary duty to its members to explore power supply options,” said Johnston. “Over the past decade, the electricity we deliver has become increasingly renewable. I see that continuing. But going forward, we must also do all we can to ensure that our purchased power remains as reliable and as cost-effective as possible.”
Currently, the cost of wholesale power is MPE’s single biggest line-item expense, accounting for approximately 60 percent of its nearly $40 million annual operating budget.