San Miguel Power Association (SMPA) has announced a proposed electric rate increase for all consumers, scheduled to take effect on December 15, 2025. The proposal is designed to ensure balanced cost recovery in the face of rising expenses while maintaining SMPA’s commitment to providing members with reliable power and meaningful choices in how they manage their energy use.

For residential consumers, the proposed change includes a $5 increase to the monthly access charge, bringing it to $33.00 per month, and a 3¢ increase to the on-peak energy rate, bringing that rate to 25¢ per kilowatt-hour (kWh).

Unlike many utilities across the nation, SMPA has kept rate increases to a minimum over the past several years, limiting operational costs through efficient practices and cost-saving measures. Recently, external expenses have made a relatively greater increase necessary. Wholesale power rates—including a 7.2% increase from its power supplier is a major cost driver. Additionally, there have been continued increases in materials, insurances and investment in critical infrastructure projects which ensure the cooperative can maintain safety, reliability, and resilience across its service territory. Over time, SMPA’s rate increases still pale in comparison to the rate of inflation and average electric costs, nationally.

"As a not-for-profit cooperative, our mission is to provide reliable and cost-effective power. To do that, we must ensure that the fixed costs of maintaining 1,800 miles of line across our rugged service territory are covered fairly, regardless of how much energy is consumed," said SMPA Chief Executive Officer, Brad Zaporski. "This proposal is not just about a rate change; it's about building a modern rate framework that is more equitable for all members while giving them the tools to actively reduce their expenses.”

SMPA’s Energy Efficiency, Beneficial Electrification and ‘Timing Matters’ rebates (www.smpa.com/energy#berebates) are examples of tools that bolster members’ ability to make the most cost-effective use of energy. To further support members, SMPA introduced the On-Bill-Repayment program. This program allows members to purchase energy-saving technologies like home heat pumps, insulation and other home efficiency measures with no money down, paying back on their monthly bill.

A rate change comparison for all rate classes is available at www.smpa.com/rates. SMPA encourages members to provide written comment on the proposal by emailing rates@smpa.com before Tuesday, November 18th. Members may also take part in the proposal review and public comment period, which will be held during the regular board meeting on Tuesday, November 18th, at 9 a.m. The meeting will be conducted virtually, and members can register to attend via www.smpa.com/board-meeting-agendas-and-minutes.

By engaging in this process, SMPA members help ensure that the cooperative remains transparent, accountable, and responsive to the communities it serves.