2024 KEY ACHIEVEMENTS
STRATEGIC PLAN
2024 was a defining year for SDCEA as the Board of Directors and staff developed comprehensive strategic goals to guide the cooperative’s future. Our key objectives are to:
- Prioritize safety enhancements.
- Modernize rate structures to suit evolving needs.
- Lead efforts in navigating the energy transition.
- Establish a universal communication plan to foster better connections with our members.
- Attract and retain high-quality employees.
INVESTING IN RELIABLE SERVICE
Our long-term commitment to resilience led to the continuation of a six-year work plan, infusing $22 million into infrastructure upgrades to ensure reliable service, even in extreme weather conditions.
PROVIDING EFFICIENCY UPGRADE OPPORTUNITIES
SDCEA’s new On-Bill Repayment program makes energy efficiency and electrification upgrades more accessible for homeowners, business owners, schools, and agricultural producers by connecting them to rebates, financing, education, qualified contractors, equipment, and energy audits.
WILDFIRE PREVENTION MEASURES
SDCEA continues its commitment to providing safe and reliable power as wildfire risks grow in Colorado and the West. To mitigate these risks, we have implemented a system-wide work plan focusing on wildfire prevention and vegetation management surrounding power lines. Safety and uninterrupted power supply remain our top priorities.
CHARITABLE GIVING
Our “Concern for Community” principle was exemplified this year through $101,800 in donations to local initiatives. These contributions were made possible through our members’ generous and voluntary participation in the Power of Change round-up program, business grants, and unclaimed capital credits. Proudly, none of these funds were taken from members’ utility bills or the general fund. Additionally, SDCEA employees actively volunteered throughout the community, further strengthening our role as a community pillar.
FINANCIAL HIGHLIGHTS
CONTAINING COSTS FOR OUR MEMBERS
SDCEA has consistently demonstrated financial discipline, keeping operational expenses well below the state and national averages. With 323 members per employee, SDCEA exceeds the comparable cooperatives’ median of 290. Our controllable cost of $561.36 per member stands lower than the state median of $611.75 and the national median of $645.75 for cooperatives of similar size.
This efficiency reflects our commitment to maintaining reliability while optimizing resources in an increasingly challenging economic environment.
WEIGHING FUTURE RATES
The cooperative began a cost-of-service study to analyze the expenses SDCEA incurs in providing power to all the cooperative’s rate classes, such as residential, commercial, and large-power users in 2024. 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.
CAPITAL CREDIT REFUNDS
SDCEA is owned by our members, not investors. We are a not-for-profit business. Any revenues collected above the cost of providing electric service are considered margins (profits) and are allocated back to members as capital credits. In 2024, SDCEA refunded $500,000 in capital credits back to our membership by bill credits or by checks.
LOOKING AHEAD TO 2025
Under the leadership of our new CEO and our strong and dedicated team, SDCEA is poised to further its strategic goals and community involvement. We remain unwavering in our dedication to innovation, reliability, and strengthening the cooperative for future success.
FAREWELL MESSAGE FROM THE CEO
I extend my deepest gratitude to SDCEA’s dedicated staff and the incredible communities we serve. Leaving this role will be a bittersweet transition, but I have full confidence in the people and structures in place to guide SDCEA forward.
Thank you to all stakeholders, community members, and employees who have contributed to this cooperative’s success. It has been an honor to serve you.
With warm regards,
Gary Kelly, CEO
