May 27, 2026, Board Meeting

May 27, 2026, Board Summary

Financial Report:  SDCEA CFO Sarah Crites highlighted the mild weather in the first half of 2026 continues to result in lower than budgeted kWh sales for the year. Crites said the cooperative continues to examine financials and looking for ways to maintain margins, including delaying certain expenses.

Year-to-date (April 2026):

Revenues are 8.8 percent below budget.

Total year-to-date expenses are 9.5 percent below budget.

Construction Work Plan & AP 47 Loan – SDCEA was approved for a $26.8 million work plan loan in 2022, Loan AP47. To date, $11.9 million has been borrowed on that loan. The Rural Utility Service allows an extension of a four-year work plan for 2 years. SDCEA’s loan was created knowing the cooperative would borrow over six years.

Total estimated borrowing for the next 2.5 years is estimated to be $7 million. The estimated total borrowed for the AP47 loan through 2028 is $19 million.

Due to budget and debt service requirements, SDCEA will slow borrowing, leaving approximately $7.8 million not used from the AP47 Loan.

Costs have gone up since the work plan was approved in 2022. The need for infrastructure investment remains strong, but due to costs, the number of projects viable for completion is significantly reduced. The slow-down will allow SDCEA to continue to work on critical projects and emphasize prioritization of projects.

CEO updates – SDCEA CEO Jon Beyer attended the Buena Vista Town Trustee’s May 26th meeting and participated in the discussion concerning the electric preferred amendment under consideration. The BV Trustees did not adopt the amendment.

SDCEA’s pilot energy program update was provided. Currently, there are nine water heater program enrollments and nine residential battery applications approved, with two batteries now installed.

The board asked questions about the new laws regarding meter collars and ‘patio solar,’ or small home systems. The Colorado Public Utilities Commission will develop rules for the legislation. SDCEA will select a meter collar that will allow the use of the systems within our service territory.

Beyer provided an update regarding Trout Creek Solar and recent equipment failure at the site. The repair is made and the facility is again generating power.

SDCEA hosted the Chaffee County Economic Development Committee (EDC) Board for their quarterly Board meeting.  State Representative Julie McCluskie gave insight on the 2026 Legislative Session and highlighted a few bills.

Scholarship High School presentations were underway, beginning with Salida High School. Beyer thanked director Boyle for representing and presenting. Beyer and Communications Manager Chris McGinnis attended Cotopaxi School’s awards night and were joined by Rob Canterbury.

 

Charitable Giving: SDCEA’s annual community giving programs are funded through grants from the cooperative’s business partners, unclaimed or donated capital credits, and members who voluntarily round up their monthly bills to the nearest dollar through the Power of Change program. Funding does not come from regular electricity payments or SDCEA’s general fund. Crites gave the following report on SDCEA’s charitable giving programs throughout the first quarter of 2026.

SDCEA’s Community Grant program is administered by The Chaffee County Community Foundation (CCCF). Non-profit organizations from Chaffee, Custer, Lake, Fremont, and Saguache counties are eligible to apply to CCCF for funding during an annual grant cycle. Grants are evaluated by members of CCCF’s grants committee, bringing years of combined grants experience to the review and evaluation process.

SDCEA’s Community Grant Program funding is made possible by allocating capital credits donated back to the cooperative for charitable giving. Added to the total are the generous contributions of SDCEA consumers who participate in the Power of Change (formerly Operation RoundUp) program. Power of Change funds are added to the Community Grant Program fund allocation.

In 2026, $40,000 in total was allocated through the program. Applications were submitted at the beginning of the year, awards included:

$20,000 was allocated for Community Grants by SDCEA.

$5,000 awarded to First Responder Grants, allocated by SDCEA.

$15,000 was provided for the program through a grant from SDCEA’s banking partner CoBank.

Matching Grant Program: Members or employees of SDCEA who support local charitable, civic, and educational organizations through financial contributions may submit a request for up to a $200 matching grant through the SDCEA matching grant program. Criteria for the matching grant program is available here: Matching Grant Program – Sangre de Cristo Electric Association, Inc.

Matching Grants are awarded on a first-come, first-served basis from a limited pool of funds established annually by the SDCEA Board of Directors and administered through the Chaffee County Community Foundation until budgeted funds for the program are exhausted each year.

As of April, $6,000 has been allocated to that program, $1,430 awarded.

The cooperative is responsible for corporate giving – administering scholarships, Jr. Livestock Auction, and general community donations.

Scholarships: $35,000 for the year have been allocated. Scholarship recipients were chosen for the 2026-27 school year in February and will be sent to respective schools in July.

Junior Livestock Auctions: $15,000 has been allocated for purchases in the Chaffee, Custer, and Fremont County fairs later this summer.

Community (corporate) donations: $12,000 for the year has been allocated for these awards, $3,225 has been donated through April.

 

Board Policy C-20 Interconnection & Net Metering of Consumer End-Use Generating Systems: To clear up some policy confusion with Chaffee County’s zoning designation of residential vs commercial property, vs. SDCEA Policy C 20’s definition of the two, property designed as agricultural will be considered residential for purposes of SDCEA net meter generation policy.

Another section of the policy was added to clarify that if during the application process a net meter system is determined to exceed the capacity of the existing distribution equipment, the consumer will be responsible for all costs associated with the required upgrades. The consumer shall pay for these costs before the generating system is permitted to interconnect.

Rate 5 – Electric Vehicles – The board voted to rescind Rate 5 due to lack of participation, member cost considerations, and structural changes to other rate schedules that incentivize electric vehicle charging during off-peak hours. As there are currently no members taking service at this rate, this recission will have no impact on member bills.

BV Power Depot – The board was updated on SDCEA’s proposed utility-scale battery project, the BV Power Depot, by Beyer. Negotiations are underway with a Colorado-based company on the project. The battery is proposed to store 4.5 MW of electricity, designed to maximize savings in the Tri-State Generation & Transmission demand response program. If the project progresses as planned, it will be online at the end of 2027.

CARE donation – The board voted to approve $2,500 to contribute to the Colorado Advocates for Rural Electrification organization, a statewide nonpartisan political action committee that advocates for and strengthens the voice of Colorado’s electric cooperatives. It supports candidates, regardless of political affiliation, who promote interests of the electric cooperatives. After discussion, the donation was approved 5-2, directors Canterbury and Michael Robinson casting the votes against.

Executive Session – The board voted to hold an executive session to discuss matters to be held in confidence. No action was taken after the executive session, and the board meeting was adjourned thereafter.

Next board meetings: June 24 Annual & regularly monthly meeting, SDCEA Westcliffe Warehouse, 56495 Hwy 69, Westcliffe, CO 81252. Virtual attendance will not be available. July 29, Buena Vista.

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