The access charge is proposed to increase by $3 per month or $36 per year above the current charge for all consumers, starting in January, 2025.

Based on historic data and assuming no change in consumer behavior, our analysis shows that the Time-of-Use rate (taking effect on May, 2025) will bring about average increases of less than $5 / month, on the energy component of the majority of member bills.

The total bill impact for the majority of members will be between $3.00 and $8.00.

The energy rate is an amount charged per kilowatt-hour (kWh) of electricity. The billed amount varies with the amount of electricity used each month.

We're introducing time-based rates with a 2x Peak to Off-Peak ratio.  This means you'll see lower electricity prices during off-peak hours, encouraging you to shift your energy use and save.  The off-peak period is 19 hours per day from 9PM until 4PM the following day and will cost only $0.11/kWh, down from the current rate of $0.134725/ kWh.  Peak energy is from 4PM to 9PM and will cost about $0.22/kWh.  This “time-based” rate, if approved, could go into effect for bills generated after May 1, 2025.

The access charge is a fixed monthly fee that each member must pay regardless of how much energy they use. This fee is proposed to increase by $3/month.  It covers costs that SMPA incurs even if it sells zero kilowatt hours. It is used to recover expenses such as:

• Trucks, wires, transformers, power poles and labor needed to build and maintain the electric distribution system
• System investments that improve both capacity and reliability
• Insurance, interest, depreciation and taxes

In January of 2024, SMPA raised the monthly access charge from $23.00 to $25.00 per month.

A new wholesale rate design, submitted by SMPA’s wholesale power provider, Tri-State Generation and Transmission (Tri-State) has been accepted by the Federal Energy Regulatory Commission (FERC). The wholesale rate increase of 6.2% is effective Aug. 1, 2024. The increase stands as a tangible reminder that the cost of electrical capacity is going up.

Another challenge is inflationary pressure. The cost of goods and services that SMPA needs to operate its business is increasing.

SMPA is also facing a number of other challenges, including the need to invest in fire mitigation, vegetation management, and large capital projects needed to sustain reliable electric service to members.

The Board may consider raising the SMPA access fee, starting in January 1, 2025, from $25/mo. to $28/month – 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.

SMPA is committed to keeping its rates as low as possible, and is working hard to find ways to reduce costs. SMPA is also committed to collecting revenue from rates fairly and equitably. The proposed rate increase is necessary to ensure that SMPA can continue to provide its customers with safe, reliable, cost effective and environmentally responsible electric service.

Through strategic financial planning and the use of deferred revenue, SMPA has been able to buffer against recent inflationary pressures. Over the past few years, SMPA has experienced modest load growth, due to population growth in our service territory. This increase in electricity sales has helped strengthen SMPA’s economic bottom line and help keep impact to rates minimal.

While the SMPA board of Directors has discretion on the timing of a Member Dividend retirement, SMPA generally cannot circumvent the obligation to return Member Dividends to the membership. Returning Member Dividends is fundamental to our business structure, as a member-owned cooperative.

The access charge is fixed, but there are still many actions member-consumers can take to reduce their monthly energy expense. These can range from simple home projects like caulking windows and replacing incandescent light bulbs with LEDs, to more involved projects, like insulation or replacement of appliances. SMPA offers numerous rebates to help with these types of upgrades.

Many members in SMPAs territory are reducing their total monthly budget with the replacement of a gasoline-driven vehicle with an electric vehicle (EV) or other electric device that may increase the electric bill slightly, but which eliminates other monthly expenses in order to realize a net savings. Please call (970) 864-7311 if you are interested in exploring options.

If the Time-of-Use rate is implemented in May, 2025, there will be even more ways to save.  Since the kWh charge ($0.11 per kWh) will be lower than the current charge (appx. $0.13 per kWh), any electricity used during that time will be billed at the lower rate.  Many electric appliances can be placed on timers or have built-in timers.  And many newer devices can be purchased for no-money-down, using our rebates and On-Bill-Repayment program.  Learn more.

We modeled the impacts of this change on members with different usage profiles.  Using historic energy data, our analysis shows average increases of less than $5 / month on the majority of member bills.  Some members could even see a monthly average decrease.  With the adoption of time-based rates, all members have the opportunity to improve the cost effectiveness of their energy use by taking advantage of off-peak rates.

Timing a building’s energy use can be done without large upfront expenses or unreasonable lifestyle changes.  Simple habits can make a big difference over time, and the cost of smart appliances can be reduced with SMPA rebates or paid back over time with our On-Bill-Repayment program.