November 2025 Board Meeting

SDCEA board of directors meeting November 21, 2025, board summary

2026 Budget – The cooperative’s 2026 budget as presented by Chief Financial Officer Sarah Crites was approved by the board.

For the 2026 budget, SDCEA’s proposed annual sales are 137,650,552 kWh: a projected 1.98% increase in sales over the year-end projection for 2025. Total projected kWh sales are based on the avg kwh of 2021-2025 for each rate class and projected growth in services for the year.

The proposed 2026 budget projection for power costs includes line losses based on the average line loss over the last 5 years of 7.63% totaling 11,778,000 kWh and internal usage of 931,500 kWh, resulting in projected purchases of 150,360,000 kWh. Some electricity is lost as it travels from power plants to your home or business. This happens because materials like aluminum and copper, used in transmission lines, resist the flow of electricity. As electricity flows, some of it turns into heat, reducing the amount of power that reaches you. SDCEA’s line losses are in line with industry averages.

Power costs were modeled with Tri-State’s January 1, 2026, formulary rate and Trout Creek Solar’s kWh rate.  Demand charges (peak use resulting in higher charges) in the model are based off the year over year average increase in demand charges from January-September 2025.  These assumptions inform our forecast of the 2026 total cost of power to be $12,992,000.

Projected service availability charge revenue for the 2025 budget is $7,774,000 based on rate schedules approved by the board in November 2023; other electric revenue of $157,800; and electric revenue from energy sales of $20,335,000, resulting in total operating revenue of $28,286,000.

SDCEA is budgeting for a 5.1% increase in operating expenses (non-purchase power cost related) when compared to the 2025 projected year end projections totaling $475,000 (non-purchase power cost related). Operating expense projections include expenses for operations and maintenance of the system, customer service, sales, and general administrative expenses. Drivers of the 2026 operating costs are assumed to increase the costs for material, insurance, benefits, payroll, interest expense, property taxes, engineering contracts, and office supplies. The budget includes all positions, 44 Full Time Employees and 3 Part Time Employees.

The 2026 budget forecast model meets all financial policy requirements.

 

Charitable giving – The board approved a $115,526 charitable giving budget for 2026. No funding for charitable giving comes from member revenue. Funding comes from unclaimed capital credits, Power of Change program contributions, a CoBank Matching grant, unspent unrestricted fund balances from 2024 and unallocated funds from 2025, rolled into 2026.

The amount funds the SDCEA scholarship program, community foundation grants, matching grants, community monetary donations, and livestock sale purchases.

Net Metering Policy– Net metering, metering that measures end-use generating systems, such as individual solar, wind or hydroelectric systems policy, was amended to include use of energy storage systems. For the amended policy, please click here (link to).

Utility-Scale Battery – CEO Jon Beyer reported on discussions with two potential providers of a utility-scale battery for the Buena Vista Substation. The battery could be used to discharge and shave overall system demand, reducing charges in wholesale power during peak demand times, as well as potentially helping with system backup during an outage or maintenance.

Quarterly Townhall meetings – In 2026 SDCEA will host online quarterly town hall meetings. Meetings will be posted to the website for viewing for those who are not able to attend them. The first meeting is scheduled for 2 p.m. Jan. 22, details to follow.

2025 Work projects – Chief Operations Officer Ryan Doke updated the board on completed and upcoming work projects.

Underground line replacements (Custer County):

CR 324, 1.25 miles

Little Horn area, 1.1 miles

Overhead:

Upper Cherry Creek line replacement, 7.25 miles

Tommy Young line rebuild part 5, CR 1A, 3.35 miles

Upcoming Underground:

Upper Beaver Lakes Subdivision, Lake County, 1.5 miles

Rosita Hills, Custer County 328, portions of 6.5 miles total

Overhead:

Tommy Young part 6, US 50, 3.25 miles

Ray Lewis feeders #2 and #4, Chaffee CRs 270 and 280, 5.5 miles

 

Financial report:

Year-to-date (October 2025):

Revenues are 0.8 percent over budget.

A cold January 2025 remained the main driver of increased revenue.

October 2025 was the fourth warmest October in last 20 years.

Total year-to-date expenses are 2.4 percent over budget

 

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

Next board meetings – The next regular meeting will take place December 17 at Tony’s Mountain Pizza, 630 Main St., Silver Cliff. January 30 will be the next regular board meeting in Buena Vista.

Agendas are posted 10 days in advance on SDCEA’s website: Board Meeting Agendas & Minutes – Sangre de Cristo Electric Association, Inc.