August 26, 2026, Board Meeting Summary

August 26, 2026, Board of Directors meeting summary

Energy Projects and Updates – CEO Jon Beyer provided a few program updates for the first half of 2026.  Year to date SDCEA has processed 47 home and commercial heat pump installations, a significant increase over 2025.  SDCEA has received 14 residential battery applications, and four installations have been completed.  The cooperative has also installed 15 water heater controllers and enrolled 10 participants in the managed Electric Vehicle charging program.

Due to a changed incentive structure from Tri-State Generation and Transmission, the Buena Vista Power Depot battery project is going through further evaluation. Beyer said he is looking at potential grant opportunities and behind-the-meter battery solutions as alternatives to the project.

SDCEA has joined with several other Colorado cooperatives to establish a solar and energy storage facility as part of a Bring Your Own Resource program at Tri-State. Plans for that facility, which would be located outside of the SDCEA service territory, were resubmitted to Tri-State with revised numbers earlier in September. The project involves a 199 MW solar array paired with a 199 MW battery, with a commercial operation date of late 2029 or early 2030.

Upcoming projects – Buena Vista Boys and Girls Club is finalizing permitting and expects to break ground in October or November. City Market’s new 60,000 square foot development in Buena Vista will include Tesla superchargers and is expected to break ground in the next few weeks.

Operations updates – There have been several outages this month in Custer and Fremont counties due to one shot system settings. The settings are reviewed but remain in place due to dry conditions and high danger of fire.

Line work in the Cherry Creek area of Fremont County is expected to be completed in September.

Work will begin next year on technical aspects of the Tommy Young line rebuild project, involving multiple river crossings and highway work requiring permits.

An addition and upgrade to the Westcliffe warehouse is progressing well with a mid-October completion target.

Town of Buena Vista vegetation management – The board discussed a tree removal project in town rights-of-way and on a limited amount of private property in the southwest quadrant of Buena Vista. A meeting was held with the Buena Vista town manager. The town requested a one-street pilot project before issuing a permit to conduct further vegetation management in the area. The project will begin with one street as a test case. A presentation to the town trustees will be made on September 8th.

Financial report – Due to low sales over the past year’s mild winter, July marked the first month this year meeting revenue budget predictions, with expenses tracking 6.5% under budget year-to-date.

Year-to-Date kilowatt-hour sales are 4.6 million below 2025, a revenue reduction of $625,000. YTD expenses are about $1,000,000 under budget, mostly from reduced power costs and an improved load factor, which may be due to a new billing structure.

July financial ratios meet all targets, and the forecast shows meeting all debt covenants at year end. Cash reserves are healthy, but borrowing for other capital projects this fall is anticipated.

Approximately $12,000 in uncollectible accounts will be written off for 2026, down from $16,000 in 2025. The cooperative’s write-off ratio is better than national and peer averages.

The 2027 preliminary budget will be presented to the board during the October Finance and Audit Committee meeting.

Director Compensation – The board reviewed proposed changes to director compensation based on national and Colorado cooperative data, with staff presenting two options: either switching to a simplified monthly stipend system ($900-$1,150 per month) or maintaining the current per diem structure while increasing meeting payments.

Board members expressed mixed preferences, with some favoring the simplified stipend approach while others raised concerns about potential overcompensation and lack of accountability for directors who don’t attend meetings, noting the importance of conference attendance for training and certification.

The board then discussed and approved updates to board compensation policy A6, including increasing board meeting fees from $250 to $350 and other meeting fees from $200 to $250, while maintaining the current stipend amounts. The policy changes will take effect January 1 and were approved with a majority vote, though two board members voted against due to concerns about public perception of board compensation increases during inflationary times.

Employee health benefits – The cooperative faces a projected 16.7% increase in healthcare costs for employees for 2027, with an estimated budget impact of $213,000 if no changes are made.

A detailed discussion was held and led to a decision to make a few changes to the plan offered to reduce the 2027 budget impact.

Employee Satisfaction Survey Results – The board discussed employee satisfaction survey results, highlighting areas for improvement including cross-department collaboration, recognition programs, and communication.

Executive Session – The board voted to hold an executive session to discuss matters to be held in confidence. Action was taken after the executive session to approve a compensation adjustment for the CEO effective January 1, 2027, the board meeting was adjourned thereafter.

Next board meetings: There will be no regular board meeting in September. A September 22-23 board education and strategic planning session will be held at the Salida Steamplant instead. The next regular meetings are scheduled for October 23 and November 18 in Buena Vista.

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