Electric Costs

ARPA provides wholesale electric energy to each of its members at the same wholesale rate.  The member municipalities – Holly, La Junta, Lamar, Las Animas, Springfield and Trinidad – set their own retail rates that they charge their customers.

ARPA’s rates have historically been among the lowest in the state. Despite recent cost increases, according to the most recent rate surveys by the Colorado Association of Municipal Utilities, ARPA’s members’ retail rates are comparable with those of other utilities in this part of the state. Sometimes our rates are higher than regional prices; other times they are lower. Overall, they will remain stable over time.

How Do We Compare?

When comparing rates between ARPA member communities and other utilities in the state, it’s important to compare apples to apples. Electric rates in Lamar versus Denver are not comparable for a variety of reasons.  First, a community’s physical distance from transmission grids/lines increases its rates. ARPA member communities must pay a third-party provider to transmit their electricity. Second, due to the size of the local communities, there are far fewer customers to pay for these fixed costs, which means those costs are added to each customer’s bill.  That makes electricity more expensive in rural areas than urban areas.

The investment in a locally owned energy source has translated into recent rate increases for ARPA members. It is anticipated that after this initial period of investment, ARPA’s members’ rates will stabilize in coming years.