February 19, 2026, Board Meeting

February 19, 2026, SDCEA Board of Directors Meeting summary

Potential Rate Restructure – A slideshow presentation was delivered to the SDCEA Board of Directors as an introduction to an upcoming staff proposal in March, which will recommend transitioning to a new rate structure for SDCEA in July.

The proposal is expected to address:

• Half of SDCEA’s monthly operating costs go toward purchasing power (energy & demand) from our wholesale supplier. The demand component of the bill continues to become a larger percentage of that bill.
• During SDCEA’s coincidental peak demand, (1-9 p.m. Monday-Saturday), 60 percent of SDCEA’s wholesale purchase power cost is the peak demand charge assessed to SDCEA.
• Currently, the SDCEA energy charge to members combines both energy and peak demand charges to be shared by everyone, regardless of their contribution to the demand charge.
• Moving to a three-part rate provides a better way to more accurately assess costs for each member and gives members more control over managing the costs of their monthly bill.

Net Metering – The board approved a change in SDCEA’s Avoided Cost of Energy for 2026 to $0.02669 per kWh as compared to 2025’s $0.02602. The board also approved extending payment of excess generation from 60 to 90 days from when the member terminates service. This allows all members to take advantage of the new Avoided Cost of Energy rate and will correctly pay any member with excess generation that terminates electric service in January and February.

Substation battery: Talks continue on a purchase power agreement to build a utility battery at 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.

Bring your own Resource – SDCEA is in talks with a coalition of cooperatives to develop new renewable energy projects to contribute to our power supply under provisions in our wholesale power supplier’s contract.

Scholarship program: Employees who assisted the Scholarship Committee with 2026-27 school year scholarship selections were recognized. Scholarship awards will be announced to the recipients in March.

Financial report:

Unusually warm weather is contributing to a decline in energy sales at the cooperative. Not only has it been warmer year over year, but January 2026 was warmer than the 22-year average.

Year-to-date (January 2026):

Revenues are 8.4 percent below budget.

Total year-to-date expenses are 4.7 percent below budget.

Operations report:

Of twelve unplanned outages in January, half were caused by motor vehicle accidents or construction related.

Vegetation management included 1.36 miles of cleared line for the month, seventy-seven trees trimmed and 207 trees removed.

Discussion also included transmission provider outages to SDCEA. Efforts for better communication between the cooperative and these providers are ongoing.

SDCEA’s Board Members have been recognized for their dedication to education and its necessity to understand the operation of the cooperative. Recognition from the Colorado Rural Electric Association was received, noting all 7 SDCEA’s board members have earned their Credentialed Cooperative Director Certifications.

Executive sessions: An Executive Session was held 10:04 a.m. to discuss items to be held in confidence. The regular meeting reconvened at 10:19 a.m. No action was taken.

A second motion carried to go into Executive Session at 1:06 p.m. to discuss items to be held in confidence. The regular meeting was reconvened at 2:10 p.m. and was adjourned. No action was taken.

Next board meetings –March 31 and April 22, SDCEA board room, Buena Vista.

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