For San Miguel Power Association (SMPA), adjusting rates is sometimes necessary to ensure the cooperative can continue providing safe, reliable and cost-effective electric service for years to come.

For San Miguel Power Association (SMPA), adjusting rates is sometimes necessary to continue providing safe, reliable and costeffective electric service.

Like many organizations, SMPA is facing rising costs. One of its largest expenses is wholesale power purchased from Tri-State Generation and Transmission, which is expected to increase another 6%–8% in 2027. SMPA is also experiencing higher costs for materials, labor, insurance, vegetation management, wildfire mitigation and other essential services.

At the same time, SMPA must continue investing in the infrastructure that delivers electricity to members. Maintaining and upgrading poles, wires, substations and other equipment is essential to reliability, particularly in Western Colorado’s challenging terrain and changing weather conditions.

SMPA is also investing in grid modernization and technology to support changing energy needs, including electrification and distributed energy resources such as local solar and battery storage.

As a member-owned cooperative, SMPA does not raise rates to generate profits for outside investors. Rates are designed to recover the actual cost of providing electric service while maintaining the financial strength needed for reliable operations and long-term investments.

Ultimately, rate adjustments help SMPA keep pace with the real-world cost of serving members while building a stronger, more resilient electric system for our communities. Considering all these factors, the SMPA board will soon see a proposal for a rate increase.