October 2024 Board Meeting Summary
PrintSDCEA (Sangre de Cristo Electric Association) Board of Directors Meeting Summary, October 31, 2024
Analysis of recent rate proposals and rollout, Strategic Task 3a.2 – Staff and the board reviewed past electric rate proposals. Discussion was held on lessons learned from previous rollouts, including various staff and industry suggestions aimed at improving the rollout process.
The board reviewed a proposed timeline for a new assessment of current rates. This process is vital for ensuring the electric cooperative’s financial and operational sustainability.
A consultant is currently reviewing data on existing rates. The analysis includes:
- Determining revenue requirements necessary for the cooperative’s operations.
- Analyzing the cost of service to provide power.
- Identifying potential rates that align with these findings.
A presentation of the consultant’s findings is scheduled for the first quarter of 2025. This will provide the board and staff with detailed insights into current rate structures and potential adjustments.
Post-presentation, the board and staff will deliberate on various rate options based on the findings to ensure they align with both operational needs and member expectations, a process likely to take several months.
Capital Credits: The board approved $500,000 in capital credit retirements.
The board approved SDCEA staff to return credits to more than 7,700 current and former members for a total refund of $500,000 in 2024. $123,974 of this amount comes from Tri-State, SDCEA’s wholesale power provider, and is passed on to SDCEA’s members. Since SDCEA is a member of Tri-State, SDCEA’s members are eligible to receive a return of capital credits from them. The credits were refunded to members who received service in 1997, 1998, and 2005.
For those who have service with SDCEA in 1997, 1998 or 2005, credits will appear on their November bill (received in December). For those who are no longer members, their capital credit checks will be mailed in December.
Presentation of Spring 2023 Member Survey – A presentation was given by staff on the findings of responses to a member survey conducted in Spring 2023.
- Reliability and Cost: Members indicated that reliability and cost are the two most important aspects of their electric service.
- Home Conditions: Many respondents live in older homes, which may require replacement of heating or other home improvements.
- Resource for Members: There is an opportunity for SDCEA to position itself as a valuable resource for members considering heating and home appliance replacements.
Survey results also indicated there is a demonstrated need for increased education and communication regarding the company’s cooperative business model and renewable energy supply.
Charitable Giving: The board approved a total allocation of $118,000 for charitable giving across SDCEA’s five counties in 2025. Notably, these funds are not sourced from rate payers.
This budget supports various initiatives, including post-high school scholarship programs, community grants, general donations, matching grants and annual 4H livestock sales.
Funding sources include unclaimed capital credits, donated capital credits, Power of Change Program participation, and grants from entities such as CoBank, one of SDCEA’s lenders.
Wildfire Mitigation Rate Rider – Action was tabled to November on approval of the 2025 Wildfire Mitigation rate rider amount remaining at $8 per month. The board requested more information on a spending plan and the scope of the project.
Energy Outreach Colorado –$5,000 was approved to be donated to the Energy Outreach Colorado program, which provides bill assistance and home energy audits and energy efficiency upgrades to those in need.
Financial Report
Year-to-date (September 2024): Revenues are 1.3 percent under budget.
Year-to-date (September 2024): Total expenses are 3.6% under budget.
Grant Submission information:
- New ERA Funding – Submitted letter of intent for potential solar and batteries for Querida/Kettle substations in Custer County. SDCEA is awaiting notification on this grant award.
- SDCEA learned that a joint grant application with San Luis Valley, United Power, and other cooperatives for GRIP 2 funding was not awarded to the applicants. SDCEA applied for the grant for grid hardening and fiber optics installation. Total SDCEA Grant request was for $9,674,701. SDCEA would have contributed $3,224,900 to the projects for a total amount of $12,899,601.
The board adjourned to executive session to discuss matters to be held in confidence. No action was taken after the executive session.
