August 2024 Board Meeting Summary
PrintSDCEA (Sangre de Cristo Electric Association) Board of Directors Meeting Summary, August 22, 2024
CREA (Colorado Rural Electric Association) Visit – Kent Singer, Colorado Rural Electric Association Executive Director, attended the meeting to touch base with board members and staff at SDCEA. CREA is the trade association which represents SDCEA and 21 additional electric cooperatives throughout the state in legislative, safety, communications, education, and other cooperative matters.
2025 Employee Benefits package – The board approved 2025 employee benefits, which remain the same as in 2024. Medical coverage costs increased 2.9%.
Capital Credit Refund Revisions – Sangre de Cristo Electric Association (SDCEA) is a not-for-profit electric cooperative. At the end of the year, our financial statements show whether revenue exceeded costs and resulted in a positive margin (profit). Margins are used by SDCEA for operating capital and, over time, may be paid back to our members in the form of capital credit refunds when the financial position of the cooperative permits and policy provisions are met. Margins are not distributed to shareholders or employee bonuses in this, our not-for-profit, cooperative business model.
The board approved changes during the August meeting to the policy regarding capital credit retirements. For general capital credit retirements, members who no longer receive service from SDCEA will receive checks if the amount is $20 or more. Small checks will no longer be sent but the co-op will send the member a check for their capital credits, after multiple general retirements are completed, when the total amount of the check is over $20. If it is a final retirement for a member, a check will be issued for less than that amount. Additionally, if a member left service without paying their outstanding bills and normal collection efforts have failed, the capital credit can be used toward settling that unpaid bill.
Members also have the option to donate their credits to SDCEA’s post-high school scholarship program, Power of Change community grant program or Shine Your Light bill assistance program.
Tri-State: SDCEA Custom Energy Programs Portfolio study – SDCEA and its wholesale power provider Tri-State are looking into a new program to improve the cooperative’s load factor to optimize demand cost savings.
Among the information needed to be gathered in the initial stages of the program is to determine the characteristics of SDCEA’s load profile over three years and find if it changes and identify load curve and resources that drive the portfolio.
Data will also be gathered to show decarbonization on SDCEA’s system via electrification from fuel switching, as well as the effect of roof top solar production on SDCEA’s system and costs in distributing roof-top solar power on the system.
HVAC Replacement – A contract has been signed with Bassett Construction to replace SDCEA’s HVAC system. Demolition will start Sept. 9, and the business office will be closed to the public. A temporary business office will be set up at 211 Tabor St. in Buena Vista. Employees will be working in the temporary office and from home. Board meetings will be held offsite, starting in September. Estimated completion of the project is scheduled for mid-January 2025.
Fremont County Board Vacancy – Advertising to fill the board vacancy created by Fremont County director Nick Hellbusch’s resignation in July is out and several applicants have expressed interest in applying for the position. CEO Gary Kelly will screen applicants; the board of directors will interview candidates and vote on a replacement to be seated before a September 30 educational workshop held by the board.
Financial Report
Year-to-date (July 2024): The YTD budget has been reforecast to reflect the delay in Tri-State Generation and Transmission’s power cost increase.
- Revenues are 1.7 percent under budget.
- 2024 has been warmer compared to 2023.
- Total expenses are 3.9% under budget
- Purchase power costs are down because we are not selling as much power as budgeted.
- A&G expenses are below budget due to open positions.
- Interest expenses are under budget due to delayed borrowing for large construction projects.
- Operating and total margins are above budget.
Grant Submission information:
- New ERA Funding – Submitted letter of intent for potential solar and batteries for Querida/Kettle substations in Custer County. Notification of the award may be sent out this fall.
- Submitted a joint application with San Luis Valley REA, 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. Notifications may be sent out this fall.
Executive Session – The board adjourned the executive session to discuss matters held in confidence. No action was taken after the executive session.
