At their October Meeting, the SMPA Board of Directors reviewed the SMPA budget for 2025 which considered a 6.2% rate increase from wholesale power provider, Tri-State Generation and Transmission (Tri-State) as well as other operational price increases. The Board is considering raising the SMPA access fee, starting in January 1, 2025, from $25/mo. to $28/mo.--still one of the lowest access charges in the region among similar electric cooperatives.

The additional revenue would not be enough to cover projected costs. To cover the shortfall, the board may utilize “Rate Stabilization” funds, which were deferred from revenue totals of previous years. These two measures will allow SMPA to meet its obligations, while softening the increase to member-consumers.

The Board will also consider a proposed “Time-of-Use” rate design to take effect in May, 2025. This time-based rate would offer a more dynamic and equitable pricing model by charging different rates for electricity depending on the time of day. The proposed rates would be lower than the current rate for most of the day, and higher during peak demand hours of 4-9 PM. This approach would offer several key advantages:

1. Value Pricing for Consumers: A “Time-of-Use” rate would allow for a lower energy price to consumers that reflects the times of the day when it's cheaper to produce and deliver. This could be especially beneficial for those with electric vehicles or smart home technologies that can be programmed to take advantage of lower rates.
2. Grid Efficiency: TOU rates would encourage more effective energy use and even more energy storage, which is greatly needed to transition to a fully renewable energy future.
3. Support for Renewables: TOU rates would create a market for renewable energy sources, as they often produce electricity during off-peak hours when it's most valuable. This can accelerate the transition to a cleaner energy system.
4. Fairness: TOU rates would be a fairer way to distribute the cost of electricity, as those who use more energy off-peak can lower their overall energy bill while at the same time helping to make grid operations more cost effective for everyone.

The proposed Time-of-Use structure would also include an opt-out demand rate to give flexibility to members whose energy use profile positions them to take advantage of it. SMPA personnel and information tools can help consumers make informed decisions.

The Board of Directors will consider the proposal as well as any feedback from the membership at the November 19th meeting. At that time, there may be a motion to approve. If the rate design is approved, the access charge increase would take effect January 1, 2025 and the Time-of-Use rate would not take effect until May, 2025 in order to allow time for a smooth transition of billing processes.

The SMPA Board is actively seeking input from the member-consumers. If you have comments for the Board to consider, please email comments@smpa.com. There will also be a member-consumer comment period at the start of the November 19th meeting, which will be held in person at the SMPA Ridgway office as well as virtually over the Zoom© platform. (Register here). All members are invited to participate.