SMPA Power Supplier Change Discussed, 2018 Budget & Rates Review Underway
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.