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 is effective Aug. 1, 2024.

“As our wholesale power costs from Tri-State continue to increase, we are working on several strategies to lessen the impact to our membership,” said SMPA Chief Executive Officer, Brad Zaporski. “The use of deferred revenue this year, and likely the next, will help SMPA avoid rate shock to our members and still allow us to meet all of our obligations.”

The 6.2% increase does stand as a tangible reminder that the cost of electrical capacity is going up. A non-profit electric cooperative, like SMPA has only two ways to generate revenue to cover expenses, the money can be borrowed or revenue can be recovered through retail electricity rates.

As SMPA looks toward 2025, there is a possibility that the Board may need to consider a rate increase (typically, realized as an increase to the fixed access charge on the monthly electric bill) to help cover the increased wholesale rate from Tri-State. If this need arises, it’s also possible that SMPA may be able to use more deferred revenue to soften the impact. The San Miguel Power Board has also been considering a move to a time-based rate system.

SMPA posts updates on this topic in the monthly newsletter, EnergyWise. Also, electric consumers may have an opportunity to ask about it directly. SMPA is, once again, hosting “Power Hours” events throughout the territory. Check the Power Hours page to find out when SMPA be visiting your area. Also, SMPA members can provide feedback at comments@smpa.com.