SDCEA Board Approves Rider to Aid in Wildfire Mitigation
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To help protect and sustain local communities by helping to avoid a catastrophic wildfire, the SDCEA Board of Directors has approved a monthly wildfire mitigation rate rider on SDCEA monthly bills, beginning in 2021.
The rate rider will be used for a limited time and for the specific and necessary purpose of accelerated funding of vegetation removal to mitigate the threat of wildfires on our system. Funding raised through this rider will be used only for wildfire mitigation and will not be absorbed in SDCEA’s general operating budget.
The board approved a $6 per month rate rider for 2021, with an incremental increase of $1 per year until it reaches $10 (2025). SDCEA will need to increase the rate rider for one month only in 2024 – January – from its current $8 to $9.
This is because the rate is in place to increase by $1 in January and we must give 30 days public notice of this rate change reduction to our rate schedule. Public notice of this change will be published in area newspapers in December. Then, the assessment will be reduced and remain at $8 February 1, 2024 – December 31, 2024.
Our revenues from the rate rider match what we are spending in mitigation for the next year, so keeping the fee at $8 per month is recommended in the rate schedule changes.
The rate rider is in use for a limited time and for the specific and necessary purpose of accelerated funding of vegetation removal to mitigate the threat of wildfires on our system. Funding raised through this rider is used only for wildfire mitigation and is not a part of or absorbed in to SDCEA’s general operating budget.
The rider will be charged to each service account (security lighting and line retention excluded) on our system. The wildfire mitigation rider will be reviewed periodically for effectiveness by the board. The monthly charge will “sunset,” or be removed from SDCEA bills, when the wildfire mitigation rider is no longer necessary.
Three of the five largest wildfires in Colorado history burned in 2020, the effects of which continue to be felt statewide. The Decker and Hayden Creek fires burned locally in recent years, causing great impact to those who live near those burn scars. Our region remains at further risk for an even larger, more severe wildfire.
Despite spending hundreds of thousands of dollars annually prior to the enactment of the rate rider on vegetation management, it was estimated that at those previous funding levels through the SDCEA budget, it would take SDCEA more than 20 years to effectively clear regional electric lines. The SDCEA board, faced with this reality, opted to close this funding gap to address the urgent need to clear potential wildfire ignition sources by voting to approve a rate rider to gain adequate funding to combat this issue.
Through the wildfire mitigation program made possible by additional funding from the rider, SDCEA will significantly increase efforts to reduce the risk of ignition and a resulting wildfire from our electrical system.
Even if your home is not located “in the trees,” you may still be at risk for a wildfire. Areas where there are no trees are of great concern for a fast-moving wildfire, due to low moisture content vegetation.
Your property may also lose power during a wildfire for days, weeks, or months, even if it is not in the direct path of a wildfire, as transmission and distribution lines are de-energized or damaged by the blaze.
If you have not already experienced the impacts of a wildfire yourself, imagine a wildfire in your neighborhood or community. You or your neighbors may not have a chance to go home and grab things of value before your home burns down. Even if your property is insured, it will take you years to literally rebuild your life.
Additional Considerations
SDCEA’s Liability: Many of our consumers have been requested to remove vegetation on their property by their homeowner’s insurance company to mitigate the threat of wildfire damages.
SDCEA is also actively working with our insurance carrier to mitigate the threat of wildfire damages. SDCEA could be held liable in the case of a wildfire sparked by one of our electric lines — potentially responsible for loss of human life and property. The resulting financial settlement of this liability would likely significantly increase the cost of service to all of SDCEA’s consumers, as well as affect the reliability of service provided in our region.
SDCEA has broad support in this effort. SDCEA’s mitigation work complements efforts made by other regional leaders and entities committed to creating better wildfire resiliency.
While the rider and resulting mitigation program may be difficult for some of our account holders to support, we ultimately hope that through this commitment, we can better protect the quality of life for those living in our region now and in the future.
For questions and more information about the wildfire mitigation rider, please email us or call our office toll-free, 844-395-2412.
Colorado’s Largest Wildfires
Three of Colorado’s largest wildfires in history burned in 2020.
The top five largest fires in Colorado history are:
- 2020 Cameron Peak Fire — 208,913 acres
- 2020 East Troublesome Fire — 193,812
- 2020 Mullen Fire — 176,840 acres. It began in Wyoming and burned into Jackson County, Colorado.
- 2020 Pine Gulch Fire — 139,007
- 2002 Hayman Fire — 137, 760
- 2013 West Fork Complex Fire — 109,049
- The Marshall Fire was an extensive wildfire that started on December 30, 2021, in Boulder County, Colorado. The fire killed two people and became the most destructive fire in Colorado history in terms of buildings destroyed. An estimated 1084 structures, including houses, a hotel and at least one shopping center, burned as a result of the Marshall Fire, and another 149 were damaged. Estimates place the total damage of the wildfire as surpassing $2 billion.
