CEO Message
In the first decades of GCEA’s existence, there was a great deal of similarity in the way people used electricity — at least much more so than there is today. This led to the creation of a simple retail rate structure, which was mostly based on how much one used.
Over the years, as different uses of electricity and different usage patterns emerged, we have been gradually increasing the monthly service availability charge to more fairly recover costs. In 2026, GCEA will add a third rate component: a peak demand charge. This change will promote fair cost recovery among members, give members a new way in which to control their monthly bill, and send a clear signal to members about actions they can take to help GCEA save money and keep rates as low as possible.
To be clear, this new rate component will not create additional revenue for GCEA. As a not-for-profit cooperative, GCEA operates at cost. This new charge will be phased in over five years to facilitate a smooth transition, and because we will collect some of our revenue through this charge, the energy, or kilowatt-hour charge, will be less than it would have otherwise been.
GCEA ended 2024 in a strong financial position, but we saw negative growth of 0.7% in kilowatt-hour sales compared to 2023. Kilowatt-hour sales have typically grown year over year for GCEA, but over the past decade, GCEA’s growth has been below average compared to other rural electric cooperatives in Colorado. This downturn in sales is driven primarily, if not entirely by weather, but growth can help GCEA keep rates down. With so many ways for members to save money and benefit the environment by switching to electricity, we are hopeful that growth is in our future.
After decades of research and work, GCEA completed a hydro generation project at Taylor Dam and that facility is now generating approximately 3% of GCEA’s power requirements at a cost savings for our members.
In related news, we expect to begin construction on two local solar projects that together will produce about 3.4% of GCEA’s power supply at no additional cost to members. The remainder of our power supply from Tri-State Generation and Transmission Association continues to become more renewable and less carbon intensive without additional cost from the transition.
In our ongoing efforts to maintain reliability at an average of 99.97%, a rebuild/upgrade of 11 miles of overhead power line along Highway 149 will be completed this year and it appears that we will receive $5 million in federal assistance for this three-year, 33-mile project.
I join Board President Lehmann in recognizing our exceptional team; each person is needed to take advantage of the opportunities before us and every one of which has risen to the challenge again and again. I cannot say enough about the excellent work and dedication of our entire team.
Thank you for being a part of GCEA and for allowing us to serve you. We will continue to make good things happen for you in the coming year. We hope you will join us for our upcoming annual meeting and other events throughout the year.
Author: Mike McBride, Chief Executive Officer
