Beginning January 1, 2026, SDCEA will increase rates to offset rising operational and wholesale power costs while maintaining safe and reliable electric service.
Service Availability Charge:
- Residential Rate 1 customers will see a $3.85 monthly increase.
- This charge covers essential infrastructure maintenance, materials, labor, outage response, software systems, and compliance requirements.
- Updated rate schedules for all classes, including projections through 2027, are available on SDCEA’s website.
Energy Charge Adjustment:
- Energy rate increasing from $0.13485 to $0.14370 per kWh.
- SDCEA purchases 95% of its power from Tri-State Generation and Transmission, which announced a 7.5% overall energy cost increase for 2026.
- Cost drivers include power plant maintenance, new solar facility ownership costs, higher market prices, tariff increases, and clean energy tax credit changes.
Estimated Average Bill Impacts:
- +$7.83/month for 450 kWh users
- +$10.04/month for 700 kWh users
- +$12.70/month for 1,000 kWh users (Approximately a 7.55% overall increase.)
Members can review updated rate details online or contact SDCEA for personalized usage assistance.
Understanding the Upward Pressure on Rates
Rising costs across the electric utility industry are driving adjustments nationwide. SDCEA has absorbed many expenses in recent years but must now increase rates to sustain reliability and safety.
Key Contributing Factors:
- Rising Equipment & Material Costs: Inflation and supply chain disruptions have significantly increased the price of transformers, poles, wire, and vehicles.
- Financing Challenges: Higher interest rates make long-term infrastructure borrowing more expensive.
- Modest Sales Growth: Power sales remain flat due to mild weather and limited industrial load.
- Rural Density: SDCEA serves just 8 members per mile of line, compared with 48 per mile in urban areas like Colorado Springs. Maintaining infrastructure across 2,000 square miles is costly.
Despite these challenges, Central Colorado’s growth presents opportunities. New housing and commercial development may expand the member base, helping spread fixed costs more broadly in the future.
Cost Control Efforts:
- Adjustments to employee benefits and training budgets
- Maintenance prioritization and improved efficiencies
- Reduced borrowing to lower interest expenses
- Maintaining current staffing while improving reliability
Commitment:
SDCEA pledges to continue providing safe, affordable, and reliable electricity while communicating transparently about rate changes. Members are encouraged to explore SDCEA’s energy efficiency and rebate programs to help manage costs.
John Byers 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.
