Our mission, and the primary job of an electric cooperative, is to deliver electricity to its member-owners in a reliable, safe, and affordable manner. This has always been a challenging job, and it is not getting any easier.
K.C. Electric Association employees do a great job maintaining and improving our electric grid. We have invested in technology such as advanced metering infrastructure and a supervisory control and data acquisition system, both of which help keep our reliability metrics at a high level.
Safety is our cornerstone. K.C. Electric employees are our greatest asset, so it is critical that we give them the tools and equipment they need to safely do their job. They help create and maintain an electric grid that is safe for our members and the public. We are proud of our outstanding safety record. It reflects our team’s commitment to creating a workplace where every employee feels secure, supported, and empowered to speak up for safety.
That leaves us with affordability. K.C. Electric purchases electricity from our wholesale power provider Tri-State Generation and Transmission Association. Affordable rates continue to be a priority for Tri-State, and it maintained stable rates from 2017–2023 and did not increase rates in 2025. Colorado’s electricity market is evolving toward increased integration and clean energy, which continues to put upward pressure on all wholesale electric utilities in Colorado.
Colorado law requires Tri-State to achieve at least an 80% reduction in greenhouse gas emissions by 2030 compared to 2005 levels. For decades, Tri-State has been involved in the operation of three thermal generation units at the Craig Station in northwestern Colorado. Tri-State, along with Xcel Energy, Platte River Power Authority, Salt River Project, and PacifiCorp jointly own two of the units, and Tri-State is the primary owner of the third unit. These three thermal units will be retired by the end of the decade and must be replaced with other generation sources that may include wind, solar, and battery storage.
In addition to building or purchasing the output of new generation sources, Tri-State will also be updating its transmission system throughout its service territory. This will undoubtedly increase Tri-State’s wholesale power rate. Since 75% of K.C. Electric’s annual overall expenses are the cost of power from Tri-State, this will also cause an increase on the rates we charge you, our member-owners.
There are a number of things that factor into the costs cooperatives incur serving their members, as well as the rates cooperatives charge to recover those costs. Much of this has to do with economies of scale. Larger cooperatives have more consumers and more commercial and industrial loads. They can typically operate a bit more efficiently, keeping costs a little lower. Smaller cooperatives that serve smaller loads have more of a challenge — population density. Colorado’s investor-owned utilities average 34 consumers per mile of power line, and municipal utilities average 48 consumers per mile of line. The average for Colorado’s electric cooperatives is 9.27 consumers per mile of line; K.C. Electric has 2.17 consumers per mile of line.
Despite these challenges, K.C. Electric has been able to keep our rates affordable. Below is data from a survey conducted by the Colorado Association of Municipal Utilities that compiles and compares the rates charged by participating utilities across the state. This data shows that even though we are rural, have smaller loads, and low density, we have kept our rates below most of the other cooperatives and utilities in the state.
Whatever the future holds, I assure you that the K.C. Electric board, staff, and employees will do everything in our power to continue delivering electricity to you, our member-owners, in a reliable, safe, and affordable manner.
David Churchwell is the General Manager of K.C. Electric Association. KC Electric’s mission is to provide our members with safe, reliable service at the lowest cost, while maintaining an environmentally responsible, accountable, and sustainable operation now and in the future.
