March 2024 Board Meeting Summary
PrintSDCEA Board of Directors meeting highlights, March 27, 2024
Cost of Service Study – SDCEA will send request for proposal (RFP) letters to 6 national firms to conduct a cost-of-service study (COSS) and rate analysis for the cooperative.
COSS is a method that explains which customer groups are responsible for different utility costs and how much each group pays towards the utility’s cost of business.
The COSS does not signal an impending rate increase. It helps SDCEA plan and keep improving the way we provide energy. By looking closely at the results of the study, we can make educated choices about use trends, projected wholesale power costs, appropriate rates and where to spend money in the future. It also helps SDCEA prepare for new technology and changes in energy use.
The selected firm will analyze SDCEA’s financial information and current rates and structure and make recommendations to the SDCEA Board of Directors for adjustments to existing rates, as well as proposing new rate designs that meet the goals of:
- Maintaining SDCEA’s financial health
- Reflect cost-to-serve
- Rates that are balanced and impartial
- Foster strategic load growth (e.g., beneficial electrification)
- Recognize the energy transition future and provide value to SDCEA’s energy programs and services offered to members who would like to participate in them.
SDCEA is seeking to work with a rate consultant who has a record of sound rate design as well as experience in formulating and “rolling out” innovative rate designs that meet the goals previously stated.
SDCEA plans to select a rate consultant who possesses expertise, adaptability, and a progressive mindset, so SDCEA will be able to investigate and formulate strategies to ensure equity and offer enhanced benefits to our member groups.
Responses to the RFP request are due to SDCEA by 5 p.m. May 6. After a period of evaluation of the proposals, the board will hear recommendations on selecting a firm, consider options carefully, and vote on awarding a contract.
Scholarship awards – SDCEA’s post-high school education 2024-25 school year scholarship awards were announced. Peyton Wakefield of Buena Vista High School received the 4-year, $2,000 per year scholarship.
Other students who received awards from Buena Vista High School unless noted were Gweneth Fuess, Madeline Litvay, Danica McFadden, Cody Morgan, Daielle Neufeld, Clara Kirr, Lake County High School; Chloe Puckett, Dawson Martinez, Audrey Johnson, Colton Montoya, (technical school scholarship), Elijah Flowers (technical school scholarship), and Sierra Mulder were awarded one-time $2,000 scholarships. Cody Norton earned a $2,000 employee-dependent scholarship, and Ciali McGinniss, Cotopaxi School; and Elena Dunn were awarded $500 Tri-State and $500 SDCEA matching grants for a total of $1,000 each.
Grant funding update – SDCEA is waiting for word on New ERA Funding for a potential solar and battery backup installation at the Querida and Kettle substations in Custer County.
SDCEA was denied funding from GRIP 2 funding for communication infrastructure upgrades.
A joint application with San Luis Valley Rural Electric Association, United Power and others for Grip 2 funding has been accepted in to a second round for consideration.
Financial Report
Year-to-date (February 2024): Revenues are within 1 percent of budget.
Total expenses are 13.5% under budget. The three main reasons for expenses being under budget are:
- More labor money is going to capital projects vs. expensed, when compared to last year
- Purchased power costs are lower than budgeted because of a federal ruling delay on the 2024 Tri-State rate increase and,
- Vegetation management expenses have started slower than budgeted for the first 2 months of the year.
Engineering Report
92 New Service Work orders have been started in 2024.
NTRC is performing an engineering analysis for fiber installation. This includes working closely with Visionary Broadband (who bought Aristata), helping bring fiber communications to the Johnson Village and Nathrop areas.
A systemwide solar/distributed generation saturation study by Toth Engineering is nearing completion.
A 60-lot subdivision in Custer County is scheduled for construction starting early summer.
Phase two of the Tommy Young line rebuild is underway.
Staking work is underway for line replacements by Silver-West Airport and by SDCEA’s Westcliffe warehouse. Work is scheduled for this spring.
Wildfire Mitigation Update:
Two crews using grant funding by the Colorado State Forest Service are working in Custer County.
Operations is developing a plan to perform tree mitigation in Buena Vista.
Lumen, (formerly Century Link) paid $200,000 for their portion of tree cutting in Lake County.
Mitigation Project Totals since inception:
Total Overhead Line Miles in System: 750
Estimated miles to be Cut/Trimmed: 264
Total Miles Cust/Trimmed: 132
Percent Complete: 50
Estimated Project Cost: $9 Million
Total Project Spent: $5,297,975
Amount Remaining to Spend: $3,702.025
2024 Budget $2,119,045
2024 Spend Year to Date $472,438
2024 Budget Remaining $1,646,607
2024 Progress
Total Trees Removed – 375
Total Trees Trimmed – 260
Hazard Trees Removed – 0
