Access Charge Explained at SMPA Annual Meeting
- 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.