Manager’s Messages

Sangre de Cristo Electric Association is working to reduce its carbon footprint without sacrificing reliability or affordability. In 2025, nearly half of the power we distributed came from renewable sources. This milestone reflects a collaborative partnership with Tri-State Generation and Transmission Association, future-ready planning, and a growing dedication to renewable energy.

SDCEA’s responsibility is to provide safe, reliable, and affordable electricity to homes and businesses across our territory. We are also obligated to provide renewable energy in accordance with Colorado’s clean energy requirements. The way we source this energy is through a combination of local and regional projects.

We are a retail distribution cooperative; we don’t own large generation assets. Instead, through our membership with Tri-State, we work collaboratively to secure the majority of the power we deliver. This partnership gives us access to a diverse mix of hydro, wind, and solar projects being developed across the region as Tri-State works toward a 70% clean-energy goal by 2030. At the same time, SDCEA continues to procure renewable energy closer to home.

1 local example I’m particularly proud of is the Trout Creek Solar facility located south of Buena Vista. This 2-megawatt project, constructed by Juwi, Inc. on 20 acres of Colorado Department of Corrections land, was designed to maximize the energy available from our sunny mountain valley environment. When you add local consumer net-metered excess generation to Trout Creek’s output, more than 4% of the power on SDCEA’s grid comes from locally produced renewable sources.

We get a lot of questions about whether renewable energy will lead to higher bills or less reliable service. The short answer is no. Our focus will always be reliable service and stable rates. In fact, renewable projects like Trout Creek Solar are selected with long-term rate stability and grid resilience in mind.

As a member, you have a say in what kind of energy you support. If you’d like to support additional renewable energy beyond the default supply, SDCEA’s Green Energy program allows voluntary purchases of renewable energy credits so individual members can match more of their usage with clean resources. For members considering on-site solar, EV charging, heat pumps, or other electrification measures, we offer rebates, educational resources, and on-bill repayment options.

Responsible energy means working with Tri-State, finding local opportunities to increase renewable production, and staying focused on affordability and reliability. Responsible energy means future-proofing our grid so we can continue providing the energy services our members deserve.

We know that many of our members are facing challenging times, and no one wants to see rising electricity bills. As a not-for-profit, member-run cooperative, we have a responsibility to focus on safety, reliability, and affordability. Amid widespread cost increases across the industry and in our everyday lives, the focus on affordability is becoming a greater challenge.

Later this summer, we will move from a 2-part rate structure to a 3-part rate structure to more accurately reflect Sangre de Cristo Electric Association’s (SDCEA) costs and to give you the opportunity to reduce your bill. Under the 2-part rate structure, your bills only track energy use and access fees. Thus, the only way to influence your bill is to use less energy. With the 3-part rate structure, the cost of energy use will decrease, and the bill will also reflect a service availability charge and a peak demand charge. This structure gives our members more options to control their bills.

What is peak demand? 1 easy way to visualize peak demand is to imagine a freeway. Now compare how that freeway looks most of the day versus how it looks at rush hour. Although the freeway doesn’t always have traffic, it needs to be ready to handle rush hour at all times. Energy is the same. Many households use several of their appliances at the same time, which means SDCEA’s system needs to be ready at all times to handle that demand. With the 3-part rate structure, your energy use rate — measured in kilowatt-hours — decreases, and we will charge a demand rate for the maximum peak of energy you use in a month. This helps us better align what you’re paying for with how energy is being used.

The new billing structure will balance the reduction in energy rates from $0.14370 per kWh to $0.13026 per kWh, with the addition of a $2.50 per-kilowatt demand charge. This structure doesn’t increase or decrease overall revenue for the cooperative but helps to ensure a more equitable bill for all SDCEA members.

This change is designed to help you better manage your electric bills by giving you more control over how and when you use energy. At the same time, it helps the cooperative manage the costs of meeting peak energy demand, helping to ensure a fair and efficient system for everyone.

The rate structure will give you options to influence your bills. This doesn’t mean changing your lifestyle; small changes can make a difference. You can shift your energy use by running your dishwasher when you go to bed instead of right after dinner, which is like waiting until rush hour is over to get on the road. You can stagger your use by running your major appliances at different times to decrease your peak demand. That means simply not running the dryer, oven, washing machine, and EV charger all at the same time. You can save on your bill by using appliance delay-start features or taking advantage of SDCEA’s programs, 1-on-1 energy consultations, and home and business energy audits.

With our new online Member Rate Education Hub, we’re making it easy to navigate the rate change. There you will find tools, including a rate calculator, that help you understand how the 3-part rate structure will impact your bill and allow you to test scenarios and options for managing it.

This change will go into effect in July, but starting with your April bill, you will see your specific peak demand reading, so you can begin to understand how your bill may change and how you can avoid the energy freeway at peak time rush hour.

You don’t have to navigate the rate change alone. Alongside simple online tools, SDCEA also offers customized support to help you walk through your individual bill. Call member services at (844) 395-2412 any time, 8 a.m. to 4:30 p.m. Monday through Thursday, to find out how the rate change may impact your bill.

As a member-owned cooperative, we have a responsibility to provide you with safe, reliable power in the most cost-effective way possible.

Most members are familiar with the energy-per-kilowatt-hour charge on their electricity bill. This charge reflects the energy you use over time. For example, if you run your 1,000-watt dishwasher for 1 hour, you will use 1 kWh and be charged the current rate for that use. This charge is straightforward — you pay for the energy you use.

The Service Availability Charge recovers the critical costs of maintaining our electric system, linemen restoring outages, the fixed costs of our buildings, vehicle maintenance, property taxes, finance costs, supplies and equipment, software, and staffing to operate the company. These costs are fixed, in that they are necessary to make service available on our system as a whole — whether a consumer uses their electricity 1 month a year or 12 months a year.

The demand charge from our wholesale power provider reflects the cost for the electrical grid to deliver power to all of our members 24 hours a day, 7 days a week, 365 days a year. The foundation of the demand charge is the highest 30-minute need for power during the month from 1 p.m. to 9 p.m., Monday through Saturday. These costs are currently included in our energy charge. In 2026, the demand charge could rise to 60% of our wholesale bill.

At the March Board of Directors meeting, Sangre de Cristo Electric Association (SDCEA) staff proposed a shift in electricity pricing to better manage demand cost during peak hours. The recommendation is to transition from the current 2-part rate structure (Energy Charge and Service Availability Charge) to a 3-part rate structure, which includes an Energy Charge, Service Availability Charge, and a Peak Demand Charge.

We understand that changes in rate structure can feel overwhelming. We are approaching rising demand costs with a solution that will allow our members to have more control over their future electric bills by shifting how and when they use energy during these hours. Under the proposed plan, the residential rate Energy Charge, which is assessed on the total electricity used during the month, will decrease from $0.14370 per kWh to $0.13026 per kWh, and a new $2.50 per kW Demand Charge will be added. This charge is based on each member’s highest 1-hour energy need (kW) during peak hours — 5 p.m. to 9 p.m., Monday through Saturday — within the monthly billing cycle. Sundays are excluded from this calculation. These details may change, pending board consideration.

This adjustment aims to reflect the cost of energy more accurately during peak demand times. This change will impact members differently depending on how they use energy.

Aside from promoting fairer cost recovery among members, a 3-part rate structure also gives members more control over their monthly bills. Currently, the only option to save on your bill is to use less energy. With the new proposed rate structure, members will be able to shift, stagger, and save to give you more influence over your bills. That means when you choose to use energy outside of SDCEA’s peak hours or stagger the use of appliances within peak hours, it will decrease your demand and demand costs. SDCEA also provides options for members to use less energy during peak times through programs and rebates, including pilot programs (water heater, EV charging, battery), efficiency rebates, and assistance options.

Starting with your April 1 bill (received in May), you will see your specific peak demand reading. While the proposed rate structure would not take effect until July 1, this information is provided to help you understand how your bill may change. You may use this information to plug into our online calculator to see what effect it may have on your bill. If you prefer, you are welcome to contact our office for help with this information.

If you have questions about our proposed new rate structure, any item on your bill, or any other questions related to the co-op, we will be hosting a virtual town hall at 2 p.m. on April 14. Details on how to access the virtual meeting are on our website. Or, you are welcome to join us on April 15 for an in-person town hall in Buena Vista, 5:30 to 7 p.m. in the community room at our business office located at 29780 US Highway 24. You can also call our office or reach out to us by emailing SDCEA with any questions you may have. SDCEA members are encouraged to attend and bring questions about any component of our service.

Sangre de Cristo Electric Association (SDCEA) is a not-for-profit electric cooperative, and we exist to serve our communities. In that spirit, we are always looking for ways to make your essential electricity more affordable, particularly as energy costs continue to rise.

We are designing new programs to give members more options to manage the costs of their electric service. 1 way to help is by managing our individual contributions to the cooperative’s monthly peak demand — those times of day when energy charges are highest. This can be achieved, in part, by taking simple steps at home to reduce energy use during peak periods. These steps include shifting the times you use electricity when you can and staggering the use of your appliances.

Last month, we introduced 2 new pilot programs designed to help members manage demand by shifting energy use to off-peak times for electric water heaters and electric vehicle charging. We are launching a third pilot program, inviting members who are interested in managing their demand to integrate batteries into their home electric systems.

Residential Battery Pilot Program

Through this program, participants will charge their batteries during low-cost periods when purchasing power from our wholesale supplier is less expensive. During peak hours when power costs are higher, participants will discharge their batteries to meet their energy needs. This approach not only helps members manage their energy use but also reduces the cooperative’s purchased power costs during expensive peak times.

The program is open to the first 20 members who sign up — they must live in SDCEA’s territory full-time. It is available to both solar and non-solar consumers. Enrolled members who participate can receive a $3,000 1-time incentive toward the purchase of a battery system and installation.

Please contact Energy Use Advisor Tom Linza for more details at (719) 395-2412 or email SDCEA.

Additional Updates

Substation battery — We continue to research the feasibility of installing a utility- scale battery adjacent to our Buena Vista substation to study and apply the same storage/discharge during peak demand time cost-savings concept as our residential battery program, just on a much larger scale. The installation may also provide some limited backup power for our system. More information will follow as this project develops.

Town hall — Thank you to all who tuned in to our first virtual town hall meeting in January. If you missed the live version, the recording is on our website. We are excited to offer this new way to reach out to you, our members, and plan to do this on a quarterly basis. The next scheduled town hall is in April.

Please contact us anytime with questions you may have about the cooperative. You do not need to wait for a town hall. Call (719) 395-2412 or visit the Contact page to get in touch. Our monthly board meetings are also open to members. Information about board meetings is posted on our website on the Board Info page.

Electric Cooperative Youth Tour — Congratulations to our 2026 participants! On page 7, you’ll read about this group of 4 high school students. Interest was high in the program this year, and we hope it fosters the development of future leaders.

I also had the privilege of speaking with Buena Vista High School Honor Society inductees at the end of January. I am always happy to speak with organizations about SDCEA. If you would like me or someone else to speak with your group, please call our office.

We look forward to connecting with you about our programs at community events.

As our colder winter months continue, electricity use naturally rises. We spend more time indoors, where we rely on our home’s heating system and use more lighting and household appliances. When a majority of our members are using electricity at the same time, typically early mornings and evenings between 5 and 9 p.m., the result is significant pressure on our electric grid and high demand charges from our wholesale power provider, Tri-State Generation and Transmission Association.

Lowering demand charges is something we can all play a part in. To help understand demand, here is an example using a light bulb. Light bulbs have varying power ratings, and for this example, we will use a 10-watt LED bulb. If this lightbulb stays on for 10 hours, it consumes 100 watt-hours – but only demands 10 watts. Now, if you turn on 10 10W light bulbs in your home for 1 hour, you are still consuming the same 100 watt-hours. However, your demand is 100 watts, 10 times higher than using 1 bulb.

Managing demand is an important driver in the cost of providing electric service to Sangre de Cristo Electric Association (SDCEA) members. The peak demand at your service dictates the size of wire and equipment necessary to serve you, and it drives SDCEA’s costs from Tri-State.

For now, you have the voluntary opportunity to help lower costs for the cooperative by shifting your use of electricity, using less electricity during peak times — Monday to Saturday from 5 to 9 p.m. — and by staggering your appliance use — running 1 at a time instead of multiple simultaneously. While this is currently a choice you can make to reduce costs, our goal is to eventually introduce rates that financially reward you for shifting your energy usage and practicing these habits. It is a step toward giving you more control over your bill and savings in the future.

For example, when you get home in the evening, cook dinner first, then run appliances such as the clothes washing machine afterwards if you have laundry to do – not at the same time. Better yet, if you have appliances with a ‘delay’ feature, set them to run after 9 p.m. These small changes reduce stress on the grid, lower costs, and make electricity more reliable for everyone.

By March, we will launch 2 optional pilot programs designed to give residential members a chance to save money while reducing demand costs on our system.

• Water Heater Pilot Program — If you have an electric water heater, you may apply to be part of a pilot program where we’ll install a Wi-Fi-enabled device to manage your heater’s activity, preventing it from running during the peak hours of 5 and 9 p.m., Monday through Saturday. In return, you’ll receive a bill credit for participating.
• EV Charging Pilot Program — For members with a Level II electric vehicle charger, this opt-in program offers a financial incentive to avoid charging your vehicle during the peak hours of 5 and 9 p.m., Monday through Saturday.

If you are interested in either of these programs, call SDCEA Energy Use Advisor Tom Linza or visit our website for more information. Both programs will be offered to a limited number of participants, and are subject to terms and conditions, including needing Wi-Fi at your home.

Next month’s column will include information about a new pilot residential battery program, which is currently under development.

Together, we can control electricity costs and create a more efficient energy system in the future.

Powering Up Opportunities for 2026

Beginning a new year can bring excitement and new energy to our lives. The same is true here at Sangre de Cristo Electric Association (SDCEA). In 2026, we will be rolling out new programs to the membership that open opportunities for you to have greater control over your energy usage. We will continue to explore a new rate structure that would bring opportunities for savings to you. And we are exploring new opportunities that we can implement at SDCEA that would bring greater transparency and savings to the membership, such as utility-scale batteries, renewable energy opportunities, and new communication initiatives.

Our exploration and research into a new rate structure is centered around demand. Why is demand — kilowatts — important to you and to SDCEA? We, as a cooperative, are billed a demand every month from our power supplier, Tri-State Generation and Transmission. This demand charge is approximately 58% of our total monthly power bill. The good news: We, as a cooperative, together with the membership, can take steps to manage demand.

To give an analogy, demand is like the speedometer of a car, measuring the speed at which energy flows. The demand charge is your highest recorded “miles-per-hour” speed that month in a given time period. Energy — measured in kilowatt-hours — is like the distance traveled or how much power you have used that month.

When demand increases, the cost of wholesale electricity rises. This happens because the supplier must either produce additional power or purchase power from others. In addition, Tri-State and SDCEA must have the infrastructure in place to serve the peak demand of the membership even when it only occurs once a month or once a year.

All of us can reduce the impact on the electric grid when demands are high on the system. Shifting your use of electricity from SDCEA’s high-demand times, weekdays from 5 to 9 p.m., to less active times, and staggering your use of appliances (i.e., using only 1 appliance at a time) helps reduce demand and create a more stable and reliable grid for everyone.

We will continue to prioritize efforts to reduce system demand by educating our members on this topic and introducing programs designed to achieve demand reduction goals. Together, we can embrace a new era of energy solutions that are both efficient and cost-effective. We are excited to collaborate with you on these initiatives, as they empower us all to manage costs effectively while providing greater flexibility and options on your bills.

As the year draws to a close, we at Sangre de Cristo Electric Association (SDCEA) are grateful not only to call this mountainous area of breathtaking scenery and amazing outdoor opportunities home, but we are also grateful to belong to this community — the people and businesses that make central Colorado a wonderful place to live.

Our gratitude is part of what drives us to provide electric service with care, attention to costs, responsibility, and dedication to support our community. We are actively planning how to meet your electricity needs in the months and years ahead, focusing on open communication and building an energy partnership for the future.

More Opportunities To Connect

We believe that open communication is key to providing you with the best possible service. It also gives members more information about the day-to-day operations of how we manage the cooperative for you.

We are excited to announce the launch of quarterly virtual town hall meetings. These sessions will be a great opportunity for us to connect directly, share important updates, and hear your valuable feedback in real time. Your voice matters, and we want to ensure you are heard as we shape our future together.

Our first town hall will be on January 22, 2026, at 2 p.m. The meeting recording will be posted to our website and will be available for viewing at your leisure. Details on how to participate will be available on our website next month.

New Programs

In addition to town hall meetings, SDCEA also plans to roll out optional programs in the first few months of 2026. We hope our members are interested in partnering with us on these opportunities that will give you greater control over your energy use.

2 of these programs — a water heating program and an electric vehicle charging program — are designed to encourage electricity use during times when it’s less expensive for the cooperative to purchase power.

We’re also exploring a pilot residential battery program, which would offer incentives for your participation.

Working with the Upper Arkansas Area Council of Governments, we also plan to open a program to provide qualifying low-income residents with weatherization and home HVAC upgrades.

These programs are some initial offerings for members looking to explore electricity consumption options and manage costs. Watch for future updates on these pages and on our website.

Thank you for being a member of Sangre de Cristo Electric Association. We look forward to a new year of providing service to our community. Best wishes to you during the holidays.

As your member-owned electric cooperative, we’re committed to providing safe, reliable service at the lowest possible rates.

Like many of you and many of our local businesses, we are also facing higher expenses, and our board has taken the step of increasing our rates as of January 1, 2026.

We think it’s important for you to know exactly why your costs for electricity are changing. This column will break down the factors driving the increase in power delivery costs. For our residential members, we have a 2-part rate. We have the Service Availability Charge and the kWh or energy charge.

Service Availability Charge Increase

The monthly Service Availability Charge for Residential Rate 1 customers (which includes most Sangre de Cristo Electric Association (SDCEA) accounts) will increase by $3.85 per month. This adjustment was approved by SDCEA’s Board of Directors in 2023 as part of our long-term financial plan for projected costs.

The Service Availability Charge increase varies by rate class. You may view updated rates for all rate classes and projected Service Availability Charge increases through 2027 by visiting our Bylaws, Rates, and Policies section on our website. Please note that these projected increases are subject to annual review.

What the Service Availability Charge Covers

Your Service Availability Charge helps fund essential services that keep your electricity flowing reliably, including:

• Infrastructure maintenance and upgrades to ensure safe, dependable service
• Operational costs, including materials, taxes, and labor
• Consumer services such as outage response and system software
• Compliance with regulatory requirements to meet safety and reliability standards

By covering these fixed costs, the Service Availability Charge guarantees that our system is ready to deliver power to your home or business 24/7 and that our crews are ready to respond to outages immediately.

Energy Charge Adjustment

The second adjustment is an increase in our energy charge due in part to increased costs from our wholesale power supplier, Tri-State Generation and Transmission. The Energy rate increase will be from 0.13485 to 0.14370 per kWh.

SDCEA purchases 95% of the electricity we deliver to you from a wholesale power provider, Tri-State Generation and Transmission.

In early September, SDCEA was notified that Tri-State is implementing a 7.5% overall increase in energy costs, which will affect SDCEA and the rest of its 39 member co-ops in Colorado, Wyoming, New Mexico, and Nebraska. Tri-State has worked diligently to control costs and has made significant adjustments to its 2026 operating budget. However, not all costs are controllable. The increase is being passed along in part due to:

• Increased maintenance on aging power plants
• Ownership costs related to new solar facilities coming online in late 2025
• Higher market and purchased power costs
• Raising tariffs
• Changes to clean energy tax credits

Total Expected Increase

For the average home in our area, we estimate that the $3.85 increase in the service availability charge, along with the energy rate adjustment, will lead to an average monthly bill increase of $7.83 for accounts using 450 kWh of electricity, $10.04 for accounts using 700kWh, and $12.70 for accounts using 1000 kWh. This represents an overall average increase of 7.55%. Your actual bill may vary depending on your electricity usage. If you’d like assistance calculating your usage or specific details based on your billing history, please contact us. The updated 2026 rates will be available on our website in November.

Understanding the Upward Pressure on Rates

Electric cooperatives across the nation are facing unprecedented cost increases for power delivery. These aren’t isolated incidents but industry-wide challenges affecting all utility providers. As a cooperative, we have absorbed many of these costs over the past 5 years. However, to maintain the reliability and safety of your electric service, rate increases are necessary to meet our current revenue requirements.

Key Factors Contributing to Current Rate Pressure

Rising Equipment & Material Costs, Modest Sales

As shown in the accompanying graphic, the cost of essential equipment has increased dramatically. Supply chain disruptions, material shortages, and widespread inflation have driven up prices for everything from transformers and wires to poles and bucket trucks. These infrastructure investments are not optional; they are crucial for maintaining a safe and reliable electrical grid.

For example, SDCEA is investing in the maintenance and improvement of our infrastructure to meet our members’ demands for energy, as well as providing the most reliable power possible. Our work plan includes creating redundancies within our distribution system to provide options for switching on the grid during outages. These are expensive investments but are designed to improve service for our members.

To build these projects, it is necessary for SDCEA to borrow money. This is to spread the costs of such projects over their 30-year projected lifespans and not incur large costs up front. This, in turn, keeps your electricity rates stable as we pay this investment back over time. Interest rates have increased overall, making it more expensive to borrow these funds.

SDCEA’s sole business purpose is to provide electricity to our members. Our primary source of revenue is from selling electricity to our members at the rates we establish. SDCEA’s sales of power are generally flat due to several factors, including our relatively mild climate, which doesn’t see significant seasonal air conditioning or heating sales except for a couple of winter months. To maintain our system amidst rising costs, we must adjust our rates accordingly to meet those costs.

Costs Spread Among Our Rural Population

It is expensive to provide power in SDCEA’s 5-county area, given our rural, rugged location spread across 2,000 square miles. Maintaining electric infrastructure through our rocky, mountainous terrain is a more expensive proposition than in many parts of the country. We must also continually reinvest in our infrastructure to maintain reliable, safe power.

The costs of maintaining our system and providing power are shared by relatively few people, given our population and small business sector. For instance, SDCEA’s expenses are shared by about 8 members per mile of line. In Colorado Springs, it’s shared by 48 customers per mile of line. In a more populated area like Colorado Springs, that might also include costs shared with multiple big-box stores or manufacturers, which helps offset costs even more.

However, we do have exciting opportunities in our future. Central Colorado is experiencing a surge in development. Housing builds and other construction projects continue to reshape our region. While this expansion introduces challenges like increased traffic and larger crowds in once-quiet spaces, it also presents potential opportunities from a utility perspective in the long run, particularly once new commercial development and housing units come online. Growth has the potential for more cost-sharing in the future when it comes to your electric bill. As our membership base grows, we can distribute utility costs more broadly.

How We Have Controlled Costs

We are also looking for ways to cut costs at SDCEA. For 2026, we have made changes to our employee benefit program along with education and training budgets. We are prioritizing our maintenance schedules and finding efficiencies within these efforts. We will be reducing our borrowing, which will have a positive impact on interest expense in the coming years. And we are committed to delivering safe and reliable service to the membership while maintaining current staffing levels.

Our Commitment To You

We are dedicated to providing you with reliable and affordable electricity. We will continue to navigate these industry-wide challenges, working diligently to manage costs while maintaining the high standard of service you expect.

We invite you to review our rates and policies on our website. If you have questions about your bill or our rate structure, please contact us. We also encourage you to explore our energy efficiency and rebate programs, which can help you find ways to reduce your energy use and save money on your bill.

As a cooperative, we are accountable to you, our member-owners. We take that responsibility seriously and will always strive to balance affordability with reliability.

Balancing Renewable & Fossil Fuels

By Jon Beyer, Chief Executive Officer

Colorado has set an ambitious target: achieving 100% net-0 greenhouse gas emissions by 2050. As your electric cooperative, Sangre de Cristo Electric Association is committed to meeting this goal while ensuring you have reliable, affordable power when you need it most. The path forward requires a thoughtful balance between renewable energy expansion and maintaining dependable baseload sources, such as natural gas plants.

Creating a truly reliable energy grid means considering more than just renewable energy — we must also maintain a certain percentage of baseload resources that enable us to supply you with a reliable source of energy 24/7/365 days a year. In addition to generating assets, we must also factor in transmission infrastructure and the reality that renewable sources don’t always produce critically necessary power 24/7/365 days a year.

Key to our approach to supplying electricity to members when they need it is our partnership with Tri-State Generation and Transmission, SDCEA’s wholesale power supplier. Through this collaboration, we’re building a more resilient energy system that combines the environmental benefits of renewables with the reliability of traditional sources.

Managing Peak Demand & Weather Extremes

Renewable energy sources face an inherent challenge: they don’t always generate electricity when we need it most. Solar panels don’t produce power at night, and wind turbines sit idle during calm weather. Meanwhile, energy demand fluctuates dramatically throughout the day and across seasons.

This is where baseload generation sources play a crucial, and in some cases, ongoing role in ensuring a reliable supply of power. During extreme weather events, high-demand periods, or when renewable output drops unexpectedly, these baseload resources ensure the lights stay on. Having multiple generation sources creates the redundancy necessary for a reliable power grid.

Our current energy mix reflects this reality. While we’re rapidly transitioning toward renewables, maintaining diverse generation sources protects against supply disruptions that could leave communities without power during critical times.

Pooling Resources for Greater Efficiency

Tri-State’s and, by extension, our upcoming participation in the Southwest Power Pool Regional Transmission Organization represents a significant step toward more efficient energy distribution across Colorado and the broader western region. This expanded partnership allows us to leverage resources that would be impossible to develop independently.

SPP integration is expected to create a more interconnected power grid. When 1 area experiences high demand or weather-related outages, other regions can provide power more seamlessly. This regional cooperation strengthens reliability and balances costs among all participating members.

Renewable Energy Goals

Through our Tri-State partnership, we expect to achieve 50% renewable energy usage by the end of 2025, with a target of 70% by the end of 2030. These aggressive timelines would be impossible to meet with our cooperative’s resources alone but become achievable through shared infrastructure and coordinated planning.

Abundant solar and wind resources across Colorado and the broader Southwest provide an ideal foundation for renewable energy development. Our regional approach through Tri-State also improves project development and transmission planning. By coordinating renewable development across multiple service territories, we can locate projects in the most productive areas and build transmission lines that serve multiple communities efficiently.

Preparing For Tomorrow’s Energy Demands

Battery technology represents the next frontier in creating a fully renewable energy system. We’re actively exploring both utility-scale battery installations and residential storage options that could fundamentally change how we manage electricity supply and demand.

Batteries can store excess renewable energy generated during peak production periods and release it when demand spikes or renewable output drops. This technology could, perhaps, reduce our dependency on baseload resources while maintaining grid reliability. Currently, costs for such batteries are high, though technology is expected to improve and potentially lower these costs.

In addition to energy storage technologies, there is a lot of work being done with small modular nuclear reactors. While we may be years away from commercial operation for one of these units, the technology is promising and is perhaps the technology that delivers baseload power with no carbon emissions.

Member Participation & Cost Management

Tri-State has worked diligently to hold its rates steady in the past few years and is now in the process of planning for its future energy supply. The Tri-State Board of Directors recently approved its 2026 budget. The budget included a rate increase for 2026 that will be passed on to SDCEA. The SDCEA Board of Directors will be evaluating this increase and determining the best course of action on how to handle these increased costs.

To help manage electricity use and lessen the impacts of potential bill increases due to rising costs, SDCEA is enhancing its energy efficiency programs to assist members in reducing their electricity usage, offering greater control over monthly bills.

Building Colorado’s Clean Energy Future Together

The transition to net-zero emissions by 2050 represents both a significant challenge and an unprecedented opportunity. Success requires continued collaboration between residents, government representatives, and energy companies working toward shared solutions.

Our partnership with Tri-State provides the resources and expertise needed to navigate this transition while maintaining the reliable, affordable power our communities depend on. By combining renewable energy expansion with strategic baseload resources, improved transmission infrastructure, and innovative member programs, we’re creating an energy system that serves environmental, reliability, and affordability goals.

Sangre de Cristo Electric Association (SDCEA) Works To Keep Your Power Affordable

By Jon Beyer, Chief Executive Officer

SDCEA exists for 1 fundamental purpose: to serve you, our member-owners. This commitment means delivering safe, reliable power exactly when you need it while maintaining the lowest possible rates.

As our area’s population grows, energy is being consumed in new ways and at different times, which is increasing demand and increasing our cost of service. We are committed to helping you manage your electric bill. We’re working hard to control costs and are actively exploring the development of a new rate structure that adapts to these shifts, while ensuring fair cost sharing for all our members.

Learning on Your Behalf

Our board of directors sets cooperative policy and rates and is elected by you to represent your interests at the cooperative. Board members take their responsibility seriously, which is why they’ve committed significant time to understanding the complexities of rate development.

This year, the board’s education rate process began in January with the first of 2 comprehensive cost-of-service sessions.

In July, board members participated in a day-long session focused on the results of this initial study and rate design fundamentals. These weren’t simple presentations but deep dives into power delivery and cost allocation.

The sessions covered three critical areas: how much power our members use collectively and by rate class, the patterns of that usage throughout different times and seasons, and the true cost of maintaining the infrastructure and operations needed to deliver reliable electricity. This knowledge forms the foundation for any future rate discussions.

Moving Forward Together

Rate design — the process of setting SDCEA’s rates — may seem like a technical topic, and we understand it directly affects your household budget and your cooperative’s financial health. By taking time to understand the true costs of electric service and exploring fair ways to allocate those costs, we’re working to ensure we’re keeping your rates as affordable as possible while the cooperative remains strong financially.

Breaking Down Your Electric Bill

Your current monthly bill has 2 main components, each reflecting different aspects of electric service delivery.

Service Availability Charge

The service availability charge funds a large percentage of essential operational expenses or fixed costs that exist regardless of how much electricity you use. Think of this as the cost of having electric service available to your home 24 hours a day, seven days a week. This charge helps fund several critical areas:

1. Infrastructure maintenance and upgrades keep the distribution system in proper working condition. Storms, aging equipment, and growing demand for electricity require constant attention and investment.
2. Operational costs include materials, taxes, and labor necessary for day-to-day operations. From the lineworkers who restore power during outages to the customer service representatives who answer your calls, these human resources are essential to reliable service.
3. Consumer services encompass outage response systems, billing software, and communication tools that keep you informed about your electric service.
4. Regulatory compliance ensures we meet all safety, environmental, and reliability standards required by state and federal agencies.

Each of these cost categories has experienced increases over recent years, and upward cost pressure continues.

Energy Costs (kWh)

The second part of your bill reflects the cost of the electricity you use. This charge includes 2 key components:

1. Energy Consumption – This covers the total electricity you use at your home or business, measured in kilowatt-hours (kWh), to power your lights, appliances, and heating or cooling systems.
2. Demand – This represents the highest amount of electricity used by the entire cooperative at any single moment during the month. This cost is distributed among our membership and is currently included in your kWh (energy) charge.

Why Demand Matters to You

Demand represents a significant cost factor that continues to grow as more members join the cooperative and electrify their homes. Understanding this concept is crucial for appreciating the challenges we face in rate design.

For example, imagine it is the coldest day of the year. Most members may decide to turn up their heat, as well as possibly do laundry, cook, run the dishwasher, and use their computer or charge other electronic items at the same time. Our wholesale supplier must have enough power generation and transmission capacity available to meet that peak demand, and SDCEA must build our distribution system to serve the membership during these times, even though it might only occur for a brief period once per month.

These demand costs get passed along to SDCEA through demand charges from our power provider, Tri-State.

Exploring New Rate Design Options

The board’s educational process aims to identify rate design options that could provide members with more control over their monthly bills while ensuring costs are allocated fairly across the membership.

1 promising approach involves creating rate structures that allow members to help reduce system-wide demand charges. By shifting certain activities to off-peak hours or installing technologies that automatically manage energy usage during peak periods, members could potentially lower their individual bills while helping reduce costs for everyone.

We’re also exploring products and programs that could help reduce individual demand at your home. These might include pricing options that reward members for using electricity when demand is lower, water heater controls, use of heat pumps, smart thermostats, energy-efficient appliances, or other options.

Next Steps

This rate education process will continue for several more months as board members and staff work through complex technical and policy considerations. Comprehensive rate structure changes will not be implemented without member education and transparent communication about any proposed adjustments.

We’re committed to keeping you informed throughout this process. Look for updates in Colorado Country Life magazine, on our social media channels, and through public workshops to be scheduled for this fall. These workshops will provide opportunities for you to ask questions, share concerns, and help shape any potential rate modifications.

I am honored to be the new Chief Executive Officer at Sangre de Cristo Electric Association (SDCEA). I have worked for electric cooperatives for more than 29 years in various roles, both at the power supply level and the distribution cooperative level. I am joining SDCEA at an important time in the utility industry. The saying “We live in interesting times” certainly applies to the energy industry as we embark on a monumental energy transition in this country.

The shift away from central-station baseload power plants that were built decades ago and are typically fueled by coal is a major challenge facing our industry. Many of these power plants are reaching the expected retirement age or need expensive upgrades to extend their lives, and utilities are not willing to make these changes for a variety of reasons. In some cases, these retirements occur for environmental benefits.

The question becomes: How do we affordably replace thousands of megawatts of baseload generation while maintaining the grid’s reliability? We are seeing coal plant retirements starting, and large investments in wind and solar energy increasing.

Tri-State Generation and Transmission Association, SDCEA’s wholesale power supplier, is leading the way in this transition. By the end of 2025, Tri-State’s energy portfolio will include more than 2,000 megawatts of clean renewable energy. Half of the energy purchased by SDCEA and supplied to you, our member-owners, will be supplied by renewable resources by the end of 2025. These investments will allow Tri-State and its membership to reduce greenhouse gas emissions by 80% from 2005 levels by 2030.

Why is this transition important to SDCEA? The largest portion of SDCEA’s annual expenses is its wholesale power bill from Tri-State, and a large portion of a member-owner’s bill at SDCEA is related to power cost. Therefore, how the costs of this transition are managed will impact SDCEA and our member-owners for decades to come.

To date, Tri-State has done a good job managing the costs of this transition. However, 2025 is an importa`nt milestone in Tri-State’s energy transition as the retirement of its largest baseload resource located in Craig, Colorado, begins. As this multi-year retirement begins, Tri-State is planning for its next baseload resource.

As Tri-State plans its new baseload resource and continues to expand transmission facilities to serve its member cooperatives, the costs to build these assets are increasing, and upward rate pressure will follow.

For us at SDCEA, keeping electric bills reasonable is a top priority, as we stand for you, our member. Every day, we focus on managing energy delivery costs to ensure affordability. We have a seat on the Tri-State Board of Directors, where we represent your interests directly to the wholesale power supplier. This ensures your voice is heard and prioritized as SDCEA’s power supply evolves. We are committed to advocating for your needs and to keeping cost management at the heart of providing service to you.

As these discussions about the energy transition continue and we learn more about our future power costs, we are committed to keeping you, our members, informed.

This summer, I will retire from my role as Sangre de Cristo Electric Association’s (SDCEA) CEO.

The search for my successor is currently underway, and updates on that process will be shared with you in the coming months.

As I prepare to step away, I cannot help but reflect on the tremendous honor it has been to serve this cooperative and, most importantly, you — our members. From community meetings to everyday conversations, our members guide every decision and shape the path of this organization.

I want to update you all about several things that are happening at the cooperative as SDCEA heads into the future.

Keeping Controllable Costs Down

SDCEA is a not-for-profit electric cooperative, a member-serving local business that has been a pillar of Central Colorado since 1940, employing approximately 44 local residents.

SDCEA currently has 323 members per employee. The median for other cooperatives of similar membership size is 290. Our total controllable expenses per member are $561.36 per member per year. The median in the state is $611.75. The median for other cooperatives in the United States with similar memberships is $645.75. This data is from the Key Ratio Trend Analysis from NRUCFC, which compares all cooperatives in the United States. SDCEA is doing more with less and continues to be mindful of our expenses even in the current economic climate of rising inflation, all with the understanding that reliability is our number 1 priority.

Rate Structure Review

SDCEA began working with rate consultant GDS in the fall of 2024 to begin a cost-of-service study. SDCEA’s last cost-of-service study began in 2019. It is considered best practice for electric utilities to review how their rates are recovering costs on a 2 to 3-year basis.

This review will assess whether the charges assigned to each group accurately reflect the actual costs of supplying power to them. This process will help the board consider how to best distribute costs and develop future rates.

Wildfire Prevention Measures

SDCEA provides safe and reliable power — something we take very seriously. Many of our consumers have experienced a heightened awareness of the potential risks for forest fires and interruption of power supply due to wildfires that have taken place throughout the west and here in Colorado.

We are working to reduce the risk of wildfires and outages posed by vegetation near power lines in our service territory. SDCEA has adopted a systemwide work plan to increase wildfire mitigation and vegetation management efforts.

Strategic Plan

In 2024, the SDCEA staff and Board of Directors developed strategic goals to serve the cooperative as guiding principles for the coming years:

• Enhance safety
• Develop modern innovative rate structures
• Proactively navigate the energy transition
• Establish a universal communication plan
• Attract and retain quality employees

Investing in Reliable Service

SDCEA is working to upgrade our infrastructure for extreme weather resilience. The cooperative’s work plan over 6 years invests $26 million to ensure sustainable, reliable service for years to come.

Charitable Giving

1 of the cooperative guiding principles at SDCEA is Concern for the Community. SDCEA employees are active volunteers in programs and events throughout our service territory. This year, SDCEA donated $101,800 to local organizations. The funding for these donations and grants was sourced creatively through our generous members who voluntarily round up their bill to the nearest dollar in our Power of Change program; grants; donations from our business partners; and donated or unclaimed capital credits. SDCEA does not fund community initiatives from our members’ monthly utility bills or our general fund.

Democratic Elections

SDCEA is governed by a board of directors, elected each year by you— our members. Our current board members have indicated they will run for reelection this spring. Potential board candidates have until April 7 to petition to run for a seat. If there are contested seats, we encourage our members to plan to attend a candidate’s forum in Howard at Howard Hall on April 24, in Westcliffe at Cliff Lanes on May 1, or in Buena Vista TBA to ask questions of the candidates and help inform your vote.

The cooperative typically has a low percentage of people who cast their vote in the cooperative’s election each year. We would like to see that improved to ensure representation of all our 15,000 members’ wishes for SDCEA’s governance. Voters may choose to mail their ballot or vote online beginning in May if there is a contested election.

Open House

We recently returned from our temporary office space used while rebuilding our HVAC system to our permanent building at 29780 US Highway 24 in Buena Vista. We look forward to welcoming you all back with an open house from 3 to 6:30 p.m. on April 10. As part of celebrating our return to the building, SDCEA is sponsoring a food drive to help a local food bank. Please bring a nonperishable, canned, or shelf-stable food item for the food drive. People who donate to the food drive will be eligible for a raffle.

Thank You

Leaving SDCEA’s staff, who are dedicated to their work and to our communities, will be a difficult transition. They are fantastic! I will leave a wonderful group of people who can no doubt steward this organization into the future. To the local community, stakeholders, and every individual who has played a part in this cooperative’s success — thank you for the opportunity to work alongside you.

With gratitude and warm regards,

Gary Kelly, CEO

By Paul A. Erickson, Chief Executive Officer

Many people remember the widespread electric outage on Christmas Day 2016. On that day, a severe wind storm slammed our region. Not only did it damage numerous Sangre de Cristo Electric Association distribution lines, it impacted electric trans- mission and distribution lines throughout Colorado and other western states.

Transmission lines are high-voltage electricity-carrying lines used to deliver power throughout the country as an essential component of the national power grid. When a transmission line is damaged, it affects power delivery to an extensive area. If a transmission line is down, it cannot supply power to regional substations.

Substations convert high-voltage power to lower voltages which are sent out on distribution lines such as those built and maintained by SDCEA to reach consumers at their home or business.

In the case of the Christmas Day 2016 outage, wind destroyed several of SDCEA’s lines. Crews worked relentlessly in extreme weather conditions to repair those lines. The storm also damaged transmission lines from Black Hills Energy, Xcel and the Western Area Power Administration, all of which supply power to our substations. If a transmission line is down, it must be repaired by the company that owns that transmission line before SDCEA can restore power to consumers through the distribution lines we own, build and maintain.

Unfortunately, that storm was so widespread, calls from thousands of people from around the western United States overwhelmed our 24-hour dispatch system, which is based off-site so it is not affected by local storms, and is shared with other electric providers. Worse, SDCEA’s Buena Vista office phone lines also went down, as did access to the internet. This left the impression with some of our consumers that we were not working to restore power that day. That’s understandable, but nothing could have been further from the truth. Our staff was as frustrated and impacted by this event as our consumers were.

It is always our goal to better serve you. We learned some valuable lessons that day and made it a top priority to make sure our communications to consumers would not be hindered in that way again. SDCEA reviewed and took immediate steps to strengthen its dispatch redundancy to respond to this unprecedented occurrence. In case we lose telephone or internet communications again, we now have a Facebook page, a Twitter account and a completely revamped website that allow us to post notices about outages with or without online service. Please check in and follow these accounts for up-to-date information on outages.

Could an unprecedented weather event happen again? Yes. We now have several communications options that we did not have previously. We are committed to continually working to review and improve these systems going forward.

Never assume that we know about an outage. We would much rather you call us than think that we already know about an outage. If you have an outage, call our dispatch 24/7, 365 days a year at 1-844-395-2412 or 719-395-2412 to report that outage. We understand that being without power is inconvenient and frustrating. One call is all that you need to make. SDCEA will then work around the clock, if necessary, to restore your service as quickly as possible. We encourage you to follow our Facebook and Twitter posts, as well as check our website for updates during outages.

When you call, you may get a live person who will verify your information and send it on to our crews. Or, you may get a message that we are aware of the outage, as the call center recognizes the phone number associated with the account that is currently experiencing an outage.

That’s why it’s important for you to keep your phone number current with SDCEA. We may also need to contact you to follow up on whether power has been restored. Sometimes we use your phone number to notify you of upcoming maintenance or planned outages, too. We do not call you to sell you stuff and we never sell your information to other parties.

And a note on preparedness. Have emergency supplies to sustain your household on-hand and easy to access while the power is out, such as battery-operated lanterns and non-perishable food and water. A complete list of emergency items to keep on hand may be found on our website, myelectric.coop under the Safety tab.

Following are some commonly-asked questions and some answers to those questions about outages.

How long does it take to restore power following an outage?

Removing a branch from a line can be relatively quick — it’s just a matter of finding it. Replacing a downed line, a broken power pole or digging up buried cable to find and repair a fault can be a much longer process. Outages can last from minutes to hours, even days, depending on the severity of a storm or other event.

Your location also affects the time it takes to get power restored. If you live in a remote area, it might take SDCEA crews an hour or more just to arrive on location (especially if they need to leave their home in the middle of the night). Then, they need to inspect equipment, determine the cause, and develop a plan to restore power safely.

Sometimes members call within a few minutes of their power going out wondering when it will be back on. In reality, our crews haven’t had a chance to arrive on scene yet, or determine what’s causing the problem.

One thing that is consistent, however, is that Sangre de Cristo crews, often braving dangerous conditions will do everything they can to restore power as quickly and safely as possible. It’s a critically important, dangerous job that SDCEA crews take very seriously.

Why does my power sometimes blink?

A “blink” (a brief momentary interruption in service) is a normal part of a power delivery system that serves an important purpose. Two examples: Heavy snow dropping from trees may make contact with our lines. Strong winds can cause trees to make contact with wires. When either of those situations happen, your lights may dim or you might lose power for a few seconds as the system operates to identify and clear the problem. Without this protective equipment, members could experience a prolonged outage instead of just a blink.

How is power restoration prioritized?

SDCEA energizes just shy of 13,000 homes and businesses along more than 1,700 miles of power lines. That’s a lot of ground to cover.

The main goal in any outage is to restore power safely to the greatest number of members in the shortest time possible. Restoration priority is to first make sure transmission lines are functioning to supply power to substations (which then distribute power to thousands of consumers), so these lines would receive first priority if affected by an outage. Next, crews would make any needed repairs at substations, followed by repairing transformers and distribution lines — the last steps in the system that bring power to your home.

I’m out, but my neighbor isn’t. Why?

Homes in a neighborhood may be fed by different distribution lines, different service lines or different transformers. It could be that the cause of the outage might be originating in the home and be unrelated to SDCEA’s system. Even so, we’d prefer that you call us to let us know your power is out so we can identify the issue and get your power back on as soon as is possible.

Please note: November 2018’s average temperatures were the coldest recorded in the past 14 years. The result to many consumers was a higher electric bill than they expected. When temperatures are colder, it takes more electricity use to raise temperatures in a home or business to a comfortable temperature.

The past two months have been cold, the days have been shorter and consumers are entering the time of year when electric bills are generally higher than other months. More on why bills rise in the winter follows in the column below.

A note on your December bill. The November 2018 electric bill included a credit for consumers who received service from Sangre de Cristo Electric Association in the years 1995, 2000 and 2001. If you received credits on last month’s bill, the December 2018 bill does not have credits applied and may give the false impression to consumers that bills rose dramatically in December.

If you have questions about your bill, please call 719-395-2412 or toll-free 844-395-2412.

By Paul A. Erickson, Chief Executive Officer

This time each year, Sangre de Cristo Electric gets calls from our consumers wondering if there’s been a rate increase because their bill is higher than it has been in previous months.

Foremost, we encourage you to call us and discuss concerns about your bill. We prefer that consumers contact us with their questions, rather than be left unsure about charges on their account.

In case you are wondering though, there has not been a rate increase this year. Your electric bill may vary, as it is based on the amount of power you use each month. When a call comes in about a higher bill, the answer to the question about the increased amount, most of the time, is that because the consumer has used more power this month, their bill has gone up.

Often, we need to remind consumers that their usage is generally higher in winter months. Mild weather in recent winters has masked typical consumption during the months of November, December, January and February. In 2017, a relatively mild weather year (the most recent full-year information we have available) average usage for all residential consumers was 602 kilowatt-hours per month. The summer average energy use was 505 kWh (or approximately $78 for an average monthly bill) The winter average was 706 kWh — more than 200 kWh more than in the summer. The average winter bill was about $105. The service availability charge is added to these totals. Depending on the size of your home and number of people living there, your average may be higher or lower than these figures.

It may not seem like you are using more power than you were, say in July, when your bill was lower. Here’s what happens, though. We are all inside more often during winter months. Temperatures drop and heaters run. The TV is on, lights are on more frequently and longer because we have shorter days. People tend to take warmer showers. Water for those showers is heated, and because it’s colder out, it takes more electricity to heat that water to the temperature you find comfortable. Keep in mind, even if you have a gas or propane heater in your home, it still uses electricity to move the warm water or air throughout your house.

Some households decorate with additional lighting for the holidays, which also draws additional power. You may run a space heater to add additional warmth to part of your home. You may have guests in your home using heat, showers and appliances such as hair dryers. You may find you cook more often or have students at home on winter break using PlayStations, computers or other electronic gadgets. Perhaps you use a block heater to start your vehicle. These are just some of the ways energy usage may increase during winter months.

Curious about how much power you use each day? You can track that. Go to our website, www.myelectric.coop. Create an account or sign in to view your usage. On the SmartHub landing page, you’ll see a View and Manage My Usage block. Click on the Start Now button and analyze your usage. This is a great way to track how energy is used in your home or business.

If you have any questions about your bill or usage, please give us a call. We may also be able to help you with suggestions on ways to lower your bill. Call us at 719-395-2412 or toll-free at 1-844-395- 2412 or submit your questions through our website 24/7 at www. myelectric.coop.

Would you like to access your daily electric usage online? It’s easy! And informative.

1. Visit myelectric.coop
2. Click on the Sign In box on the upper right hand side of the page.
3. Log in using your email address and password. If you are a new user, sign up to access the site.
4. Click on the My Usage box on the landing page.

If you have any questions, please contact one of our knowledgeable consumer representatives at 719-395-2412 or toll-free, 1-844-395-2412.

By Paul A. Erickson • Chief Executive Officer • info@myelectric.coop

In order for electricity to be available at a home or business when a consumer wants to flip a switch or turn on an appliance and use that power, it takes a certain investment in field equipment which must be energized, functioning and available to provide electricity when you may want it.

For example, when a consumer leaves their home or business, power to a property is not put away, out of use. It is left available for the evening, day, week, month or year that the consumer returns and wants to use electricity again.

The Service Availability Charge is a flat fee designed so that all Sangre de Cristo consumers pay their fair share of the cost of investment in the poles, wires, transformers and equipment that it takes to provide you with electric service. It also supports required services such as line maintenance, right-of-way clearing, fleet maintenance and general administrative responsibilities. Regardless of how frequently or infrequently you flip on the light switch or turn on the TV, these costs are part of the bill.

Sangre de Cristo Electric Association, Inc. only serves (roughly) seven consumers per mile of distribution power line. Utilities like Xcel serve around 35 per mile, while municipalities like Colorado Springs serve around 50.

As a rural electric cooperative with rugged terrain and harsh conditions, it costs us far more to maintain each mile of power lines than it does in many other areas, including service territories in Colorado. This, combined with our low density, results
in higher costs per consumer in comparison to other locations. Our electric usage per consumer is very low. SDCEA serves no industrial load nor any large loads. Furthermore, the mild valley climate results in very few of our consumers requiring or having air conditioning. Almost 50 percent of our residential consumers are seasonal users.

So how can we pay for the debt borrowed to construct the system, along with all of the accompanying costs to run the cooperative, when frequently nearly half of our members use little to no electricity? If we tried to pay for this through the variable kilowatt-hour charge, the consumer who uses very little electricity (the seasonal consumers) would pay for very little of the fixed costs. The consumers who live here year-round and use more electricity would pay more than their share of those costs. We don’t think that’s fair. Charging a Service Availability Charge to everyone is how we make sure every consumer pays their fair share of the costs, making sure the year-round consumers don’t subsidize the seasonal consumers.

SDCEA conducts cost studies with  independent rate consultants. Recommended changes to rates and rate structure are reviewed and approved by a board of directors who are consumers just like you, who represent you on the board. If you wish to review those rates or our policies, they are available any time on our website under the Members Only section after you create a sign-in.

SDCEA’s staff wants to provide fair and reasonable rates and a safe, reliable power supply to the communities in which we live. We are continually reviewing our rates and business practices to do so.