This summer, I will retire from my role as Sangre de Cristo Electric Association’s CEO. The search for my successor is currently underway, and updates on that process will be shared with you in the coming months.
As I prepare to step away, I cannot help but reflect on the tremendous honor it has been to serve this cooperative and, most importantly, you — our members. From community meetings to everyday conversations, our members guide every decision and shape the path of this organization.
KEEPING CONTROLLABLE COSTS DOWN
SDCEA is a not-for-profit electric cooperative, a member-serving local business that has been a pillar of Central Colorado since 1940, employing approximately 44 local residents.
SDCEA currently has 323 members per employee. The median for other cooperatives of similar membership size is 290. Our total controllable expenses per member are $561.36 per member per year. The median in the state is $611.75. The median for other cooperatives in the United States with similar memberships is $645.75. This data is from the Key Ratio Trend Analysis from NRUCFC, which compares all cooperatives in the United States. SDCEA is doing more with less and continues to be mindful of our expenses even in the current economic climate of rising inflation, all with the understanding that reliability is our number one priority.
RATE STRUCTURE REVIEW
SDCEA began working with rate consultant GDS in fall 2024 to begin a cost-of-service study. SDCEA’s last cost of service study began in 2019. It is considered best practice for electric utilities to review how their rates are recovering costs on a two- to three-year basis.
Over the next few months, SDCEA will work with GDS to analyze the expenses SDCEA incurs in providing power to all cooperative rate classes, such as residential, commercial, and large-power users. This review will assess whether the charges assigned to each group accurately reflect the actual costs of supplying power to them. This process will help the board consider how to best distribute costs and develop future rates.
WILDFIRE PREVENTION MEASURES
SDCEA provides safe and reliable power — something we take very seriously. Many of our consumers have experienced a heightened awareness of the potential risks for forest fires and interruption of power supply due to wildfires that have taken place throughout the west and here in Colorado.
We are working to reduce the risk of wildfire and outages posed by vegetation near power lines in our service territory. SDCEA has adopted a system-wide work plan to increase wildfire mitigation and vegetation management efforts.
STRATEGIC PLAN
In 2024, the SDCEA staff and Board of Directors developed strategic goals to serve the cooperative as guiding principles for the coming years:
• Enhance safety
• Develop modern innovative rate structures
• Proactively navigate the energy transition
• Establish a universal communication plan
• Attract and retain quality employees
INVESTING IN RELIABLE SERVICE
SDCEA is working to upgrade our infrastructure for extreme weather resilience. The cooperative’s work plan over six years invests $26 million to ensure sustainable, reliable service for years to come.
CHARITABLE GIVING
One of the cooperative guiding principles at SDCEA is Concern for Community. SDCEA employees are active volunteers in programs and events throughout our service territory. This year, SDCEA donated $101,800 to local organizations. The funding for these donations and grants was sourced creatively through our generous members who voluntarily round up their bill to the nearest dollar in our Power of Change program; grants; donations from our business partners; and donated or unclaimed capital credits. SDCEA does not fund community initiatives from our members’ monthly utility bills or our general fund.
DEMOCRATIC ELECTIONS
SDCEA is governed by a board of directors, elected each year by you — our members. Our current board members have indicated they will run for reelection this spring. Potential board candidates have until April 7 to petition to run for a seat. If there are contested seats, we encourage our members to plan to attend a candidate’s forum in Howard at Howard Hall on April 24, in Westcliffe at Cliff Lanes on May 1, or in Buena Vista TBA to ask questions of the candidates and help inform your vote.
The cooperative typically has a low percentage of people who cast their vote in the cooperative’s election each year. We would like to see that improved to ensure representation of all our 15,000 members’ wishes for SDCEA’s governance. Voters may choose to mail their ballot or vote online beginning in May if there is a contested election.
OPEN HOUSE
We recently returned from our temporary office space used while rebuilding our HVAC system to our permanent building at 29780 US Hwy. 24 in Buena Vista. We look forward to welcoming you all back with an open house from 3–6:30 p.m. on April 10. As part of celebrating our return to the building, SDCEA is sponsoring a food drive to help a local food bank. Please bring a nonperishable, canned, or shelf-stable food item for the food drive. People who donate to the food drive will be eligible for a raffle.
THANK YOU
Leaving SDCEA’s staff, who are dedicated to their work and to our communities, will be a difficult transition. They are fantastic! I will leave a wonderful group of people who can no doubt steward this organization into the future. To the local community, stakeholders, and every individual who has played a part in this cooperative’s success — thank you for the opportunity to work alongside you.
With gratitude and warm regards,
Gary Kelly, CEO
Gary Kelly is the CEO of Sangre de Cristo Electric Association. SDCEA’s mission is to safely provide reliable electric energy and services to power the lives of our members and our communities
