Sangre de Cristo Electric Association, Inc. > Board Meeting > June 2024 Meeting Summary

June 2024 Meeting Summary

SDCEA (Sangre de Cristo Electric Association) Board of Directors Meeting Highlights, June 27, 2024

Board Election – Incumbent Charles A. Abel II and new board member Sandy Long were seated after the SDCEA Board election June 6. Both have been elected to serve three-year terms.

Board officers were re-elected to serve their terms for another year, until June 2025. Sandra Attebery, representing Custer County will remain as chair, Charles Abel representing rural Chaffee/Lake counties as Vice-Chair, Blake Bennetts representing Buena Vista as secretary and Jeff Fiedler as the at large board member as treasurer.

Cost of Service Study – GDS Associates, Inc. was recommended to the board by staff to conduct a Cost-of-Service Study for SDCEA. Three additional firms also placed bids for the project. Information from the Cost-of-Service Study is crucial in establishing future rates for the cooperative.

A draft of a contract for services will be received by SDCEA from GDS this month. Staff will review the contract, as well as undergoing a legal review. The board approved GDS as SDCEA’s consultant for the cost-of-service study. Reasons GDS was recommended by SDCEA staff include:

  • SDCEA-relevant Executive Summary provided.
  • Most comprehensive & detailed proposal
  • Experience with innovative rates.
  • Recent experience with Colorado & Tri-State coops like SDCEA (e.g., Grand Valley Power (GVP)& Gunnison County Electric Association)
  • Quick response to questions
  • Cost fell within budget.

GDS Value Added Considerations:

  • Assisted coops in evaluating & designing energy programs (e.g., BE & DR)
  • Assisted coops with member education & roll-out of rate designs (GVP –CFO highly recommended GDS)
  • Recognition as a leader in rate design (e.g., NRECA’s Rate Case Studies 2016)
  • Comparison of neighboring “competing” utilities
  • Three to four different cost allocation approaches modeled & compared.
  • Focus on education sessions for staff, board, and members.
  • Principal & project team experienced in industry methods for compensation of distribute energy resources.
  • Data scientist and program language to sort and analyze data.
  • Intimate familiarity with Tri-State rate filing with FERC (prepared filing for FERC review, not acting as rate-formulating consultant).

Financial Report        

Year-to-date (May 2024): Revenues are 1.6 percent under budget.

  • 2024 has been warmer compared to 2023.
  • A cooler May pushed kwh sales up a bit.

Total expenses are 3.3 percent under budget.

  • Purchase power cost – buying less power than budgeted.
  • Interest Expense – under budget, last draw from RUS loan was August of 2023.
  • The May snowstorm brought our total operating expenses closer to budget.

 

Mitigation Report

Grant Submission information:

  • New ERA Funding – Submitted letter of intent for potential solar and batteries for Querida/Kettle substations in Custer County. Notification may be sent out at the end of July.
  • Submitted a joint application with San Luis and United Power and other cooperatives for GRIP 2 funding. Projects are for Grid Hardening and Fiber Optics installation. Total SDCEA Grant request is for $9,674,701.

SDCEA would need to contribute $3,224,900. Total amount $12,899,601.

  • Signed a letter of support to Tri State as part of the New ERA grant request.

Executive Session – The board adjourned the executive session to discuss matters held in confidence. No action was taken after the executive session.