N San Juan Mountains
Access Charge Explained at SMPA Annual Meeting
Monthly residential charge increased $2.00 beginning January 2018.
- 79th Annual Meeting held at Nucla, CO June 7, 2018
- Revenues and margins down, but finances are healthy
- Large Telluride retailer goes 100% renewable electric with SMPA Green Blocks
Old Glory suspended between two San Miguel Power Association boom trucks at SMPA's 79th Annual Meeting - June 7, 2018 at Nucla, Colorado. - Linecurrents photo
Margins declined in 2017, but San Miguel Power Association (SMPA) remains financially healthy. SMPA General Manager & Chief Executive Officer Brad Zaporski reported this to an audience of about 200 members and guests at the Association's annual meeting, June 7, 2018 at SMPA's Nucla service center. Zaporski stated that SMPA revenues from power sales exceeded expenses by about $150,00 in 2017, compared to $1.1 million for 2016.
SMPA's Board of Directors approved a 1.2 percent retail rate increase December 2017, effective January 2018. The monthly "Access Charge" increased $2 for members with "single-phase" service, including residential, while kiloWatthour rates did not change. Rates and charges for "demand" and "three-phase" electric service also changed for 2018, with some increases in monthly "Access" and "Demand" charges, and some decreases in kiloWatthour rates.
Sample SMPA monthly power bill - Linecurrents graphic
Access charge revenues recover some of the costs SMPA incurs to have service available, even if member-consumers purchase no kiloWatthours, explained Zaporski. SMPA's current monthly access charges are less than needed, and SMPA plans to gradually increase access charges in future years, he stated.
SMPA financial staff have previously reported to the Board of Directors that SMPA's monthly access charges are below the average of the more than 22 Colorado local electric electric cooperative associations.
Telluride Sports converts to Green Blocks
Board President Rube Felicelli described retailer Telluride Sports' recent decision to convert its SMPA electricity purchases to 100 percent renewable electric power. Telluride Sports will participate in San Miguel Power's "Green Blocks" program. - download SMPA Energywise newsletter - June 2018
The cost for a "block" of 100% renewable electricity is $1 per 100 kiloWatthours per month - 1-cent per KWhr - added to the regular rate.
SMPA uses Green Blocks revenues to purchase Renewable Energy Credits from electric grid power generators through SMPA's wholesale power supplier, Tri-State Generation Association, based at Westminster, Colorado.
Tri-State generates and delivers power to distribution electric cooperatives and public power districts in Colorado, Nebraska, New Mexico and Wyoming in 2017 via standard contracts included 30% from renewable sources. These not-for-profit electrical distribution cooperatives own Tri-State, and serve the electric power needs of more than 1 million homes and the farms, ranches, businesses, mining, energy development, transportation infrastructure and resorts, according to Tri-State's website.
SMPA contributes another 5% annual renewable power from local generators, for a total of 35% annual renewable electric energy in the northern San Juan Mountains region.
The entire western United States power grid renewable supply was 42% of total electric energy generated in 2017, according the the U.S. Energy Information Administration.
SMPA Achieves Superior Workplace Safety Score
Culture of Safety highlighted by latest scores . . .
SMPA Lineman Claude Barrett works to replace a crossarm on a power pole over Red Mountain Pass. Photo courtesy of San Miguel Power Association.
A Colorado electric utility workplace safety review panel has awarded San Miguel Power Association high marks for its superior practices and internal culture of safety. The SMPA safety team presented these results to the Board of Directors at its November 28, 2017 regular monthly meeting at the SMPA Ridgway center.
The evaluation panel from other Colorado electric cooperative associations conducted a formal assessment at SMPA earlier in 2017. This "Rural Electric Safety Achievement Program" (RESAP) review is conducted on a three-year cycle.
The SMPA safety team presented charts comparing 2014 and 2017 results. The 2017 RESAP score showed significant improvement.
Colorado Rural Electric Association (CREA) administers RESAP. CREA's website describes RESAP:
The Safety Improvement Plan is a disciplined continuous improvement plan based upon the needs of the co-op, evaluated and assessed annually.
To begin the process a “Formal Leadership Commitment” must be documented with;
1. A Board Resolution adopting a leadership commitment to the participation in the RESAP, acknowledging a high value in taking proactive steps in improving and maintaining a safe environment for employees and members.
2. A CEO/GM adopting the “Five Guiding Principles, completing the Formal 3-Year Assessment, developing an Annual Safety Improvement Plan (SIP), committing to ongoing training and an annual performance assessment update of the SIP.
. . . At the end of the 3-year period . . . an Observation Team from other cooperatives will complete the formal assessment . . . .
The Annual Safety Improvement Plan is built upon a platform focusing on areas most in need of improvement.
Engages all levels of leadership and employees in taking “ownership” of the safety systems and processes.
Promotes safety committee involvement in assessing current work practices and past performance including analysis of trailing indicators and incident investigation. Helps establish goals and standards.
Built using resources including but not limited to; best practices, benchmarks and standards on the national and statewide levels. . .
SMPA Power Supplier Change Discussed, 2018 Budget & Rates Review Underway
Board of Directors met at Silverton Town Hall.
San Miguel Power Association
Board of Directors Meeting
Silverton, CO Town Hall
September 26, 2017 9:30 am
Silverton Town Hall upper level
A small group of San Miguel Power Association (SMPA) member-consumers wants SMPA to cancel its long-term wholesale power purchase contract with Tri-State Generation Association (Tri-State G&T). SMPA District 2 Director (Telluride) and Vice-President Robert Justis reported having a conversation with a "vocal minority" seeking this change.
San Miguel Power is a consumer-owned electric cooperative association which provides retail electric power distribution service to the northern San Juan Mountains, Colorado region. Tri-State G&T, also a cooperative, owns and operates power plants and high-voltage transmission lines to generate and deliver wholesale electric power across the Colorado - New Wyoming - Nebraska - New Mexico - power grid to 43 electric cooperatives which own Tri-State G&T, including SMPA.
About 25 percent of Tri-State G&T's annual electric power generation is supplied by renewable sources, including solar photovoltaic, wind-turbines, and hydroelectric power supplied by Western Area Power Administration, a U.S. Federal government agency. Local renewable power sources within SMPA's service area contribute another 5 percent annually, for a total of about 30 percent renewable electric power supply for SMPA member-consumers.
SMPA CEO/General Manager Brad Zaporski presented options for pursuing withdrawal from the Tri-State wholesale power purchase contract:
- Solicit "Requests For Proposals" (RFPs) from alternative wholesale power suppliers
- Hire a consultant at a cost of about $25,000 to investigate alternative power supply options.
- Continue to evaluate power supply options in-house.
- Do not proceed.
The small group that wants SMPA to exit from Tri-State is not considering other services provided by Tri-State in SMPA's service area, such as transmission lines, suggested District 4 (Colona - Log Hill Village - west Telluride) Director Jack Sibold. Referring to the estimated cost for a consultant to review wholesale power supply options, District 7 (Ouray - Silverton) Director Terry Rhoades asked, "Are we willing to spend $25,000 to hire a consultant on this issue?"
"That's two dollars per (SMPA) member," added Director Sibold.
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Finance Report: A draft of SMPA's 2018 proposed budget will be distributed to SMPA Directors before the October Board of Directors meeting. SMPA management is working with an engineering consulting firm to develop a cost-of-service study and proposed 2018 retail rates. The November Board meeting will include rate hearings.
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System Improvements Report: SMPA's Red Mountain transmisson line which supplies electric power to Silverton is old and difficult to maintain due steep mountain terrain. Tri-State G&T will develop a cost estimate for a replacement transmission line. Tri-State reviewed back-up power options for Silverton, such as large utility-scale batteries or a portable generator.