March 31, 2026 Board Meeting

Note: A board meeting summary with other details of the meeting is also posted in this section.

March 31, 2026 Board Meeting

SDCEA Staff Proposes New Three-Part Rate Structure, Effective July 1 – At its March board meeting, SDCEA staff presented a proposal to the board of directors to transition to a new three-part rate structure, set to take effect July 1. The proposed change is designed to more accurately reflect the true cost of energy for each member and provide greater control over monthly bills.

“With the proposed new rate plan, members can use electricity just as they have in the past but at a new lower energy rate for 20 hours a day, plus all day on Sundays and major holidays. However, between 5-9 p.m. Monday through Saturday, they should be mindful about how they use power—try not to run multiple appliances or other large electric loads at the same time to avoid higher charges,” CEO Jon Beyer said.

The new billing structure balances out a 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, meaning it doesn’t increase or decrease overall revenue for the cooperative. This change is designed to help members better manage their electricity bills by giving them more control over how and when they use energy. At the same time, it helps the cooperative manage the costs of meeting peak energy demand, ensuring a fair and efficient system for everyone.

Currently, half of SDCEA’s monthly operating costs go toward purchasing power from its wholesale supplier, with demand charges making up an increasingly significant portion of that bill. Up to 60 percent of wholesale purchase power costs are attributable to peak demand charges. Under the existing structure, energy charges to members combine both energy and peak demand costs, regardless of individual contribution to the demand charge.
The proposed three-part rate structure would change this approach. The demand charge is based on each member’s maximum one-hour energy need (kW) during peak hours, 5 p.m. to 9 p.m., Monday through Saturday, within the monthly billing cycle. Sundays and major holidays are excluded from this calculation. These details may change, pending board consideration.

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, Beyer said.

To help members prepare for this change, SDCEA will begin including individual peak demand readings on bills starting April 1 (received in May). Members can use this information with the online bill calculator available on SDCEA’s website to estimate how the proposed changes may affect them. In the interim, if they’d like help finding this reading, please contact the SDCEA office for help, 719-395-2412 or email: sdcearates@myelectric.coop.

Under the new structure, members can reduce demand costs by shifting energy use outside of peak hours or staggering their use of appliances during peak demand, which is Monday through Saturdays, 5-9 p.m. Times outside of these limited hours and days and on some holidays are exempt from the demand charge.

“To support members this transition, a range of resources is available on SDCEA’s website or by contacting us, including strategies on how to lower your demand charge, energy-saving tips and information on available assessments, rebates, and on-bill financing options for appliance or technology upgrades,” Beyer said.

Members with questions are encouraged to attend one of two upcoming town halls. A virtual town hall will be held at 2 p.m. on April 14 — access details are available on SDCEA’s website. An in-person session will follow on April 15, from 5:30 to 7 p.m. in the community room at SDCEA’s business office at 29780 US Hwy S. Members may also contact SDCEA directly by phone with questions, 719-395-2412 or email at sdcearates@myelectric.coop.

For more information, including bill calculators and energy-saving resources, visit SDCEA’s Member Rate Education Hub: Education Hub – Sangre de Cristo Electric Association, Inc.