SMPA 2026 rate increase proposed, member comments requested
SMPA 2026 rate increase proposed, member comments requested
San Miguel Power Association board of directors will meet November 18 to consider proposed electric retail rate increase for 2026. A recent SMPA news release provided details and requested comments from members.
by Allyn Svoboda
Publisher
Summary
$5.00 increase to monthly "access charge" from $28 to $33 for residential SMPA members. Details of residential and other "rate class" tariffs may be viewed at SMPA website. Residential is included in first group, Single-Phase Service - Non-demand - Time-of-Use Energy.
3 cent increase to the on-peak energy rate, from 22 cents to 25 cents per kilowatt-hour (kWh).
Wholesale power expense will increase 7.2% in 2026. Wholesale power purchased from Tri-State Generation and Transmission Association is more than half of San Miguel Power Association's operating expenses.
Costs of equipment, materials, and insurances are increasing.
SMPA is building critical infrastructure projects which ensure electric service reliability and safety. These projects add to financing expenses. The Rico microgrid battery energy storage project planned for construction in 2026 is a reliability project. Some of the cost of this project will be funded by State of Colorado "Microgrids for Community Resilience Program.
History of SMPA retail rate changes
SMPA retail electric rate increases have been limited to the monthly "access" charge for the past several years. The kilowatt-hour (kWh) energy charge remained the same until SMPA introduced "time-of-day" rates in May 2025, with higher 4-9 PM "peak hours" and lower "off-peak" rates.
SMPA residential monthly
"access charge" history
Ore Cart chart
November 13, 2025
Comparison with cost-of-living and other electric utilities
SMPA retail rate average retail rate increases 2017 - 2026 have been less than half of the average annual U.S. Consumer Price Index cost-of-living and average US electric utilities increases (see SMPA charts below). SMPA 2017 change was a slight decrease . . . 2018, 2019, 2021 and 2022 had no changes.
The proposed SMPA 2026 rate increase is about 6.8%.
San Miguel Power Association charts (above and below) compare SMPA annual rates (blue), U.S. Consumer Price index cost-of-living (orange), and U.S. average electric utility residential bills (tan) percent changes.
LINKS
Email comments to rates@smpa.com
San Miguel Power Association news release
FOR IMMEDIATE RELEASE
November 2025
SMPA’s Proposed Rate Increase Focuses on Balanced Cost Recovery and Member Choice
(Nucla, CO) — San Miguel Power Association (SMPA) has announced a proposed electric rate increase for all consumers, scheduled to take effect on December 15, 2025. The proposal is designed to ensure balanced cost recovery in the face of rising expenses while maintaining SMPA’s commitment to providing members with reliable power and meaningful choices in how they manage their energy use.
For residential consumers, the proposed change includes a $5 increase to the monthly access charge, bringing it to $33.00 per month, and a 3¢ increase to the on-peak energy rate, bringing that rate to 25¢ per kilowatt-hour (kWh).
Unlike many utilities across the nation, SMPA has kept rate increases to a minimum over the past several years, limiting operational costs through efficient practices and cost-saving measures. Recently, external expenses have made a relatively greater increase necessary. Wholesale power rates—including a 7.2% increase from its power supplier is a major cost driver. Additionally, there have been continued increases in materials, insurances and investment in critical infrastructure projects which ensure the cooperative can maintain safety, reliability, and resilience across its service territory. Over time, SMPA’s rate increases still pale in comparison to the rate of inflation and average electric costs, nationally.
"As a not-for-profit cooperative, our mission is to provide reliable and cost-effective power. To do that, we must ensure that the fixed costs of maintaining 1,800 miles of line across our rugged service territory are covered fairly, regardless of how much energy is consumed," said SMPA Chief Executive Officer, Brad Zaporski. "This proposal is not just about a rate change; it's about building a modern rate framework that is more equitable for all members while giving them the tools to actively reduce their expenses.”
SMPA’s Energy Efficiency, Beneficial Electrification and ‘Timing Matters’ rebates (www.smpa.com/energy#berebates) are examples of tools that bolster members’ ability to make the most cost-effective use of energy. To further support members, SMPA introduced the On-Bill-Repayment program. This program allows members to purchase energy-saving technologies like home heat pumps, insulation and other home efficiency measures with no money down, paying back on their monthly bill.
A rate change comparison for all rate classes is available at www.smpa.com/rates. SMPA encourages members to provide written comment on the proposal by emailing rates@smpa.com before Tuesday, November 18th. Members may also take part in the proposal review and public comment period, which will be held during the regular board meeting on Tuesday, November 18th, at 9 a.m. The meeting will be conducted virtually, and members can register to attend via www.smpa.com/board-meeting-agendas-and-minutes.
By engaging in this process, SMPA members help ensure that the cooperative remains transparent, accountable, and responsive to the communities it serves.
About San Miguel Power
San Miguel Power Association, Inc. is a consumer-controlled rural electric cooperative with offices in Nucla and Ridgway, Colo. It is the Mission of the San Miguel Power Association, Inc. to provide our members with safe, reliable, cost-effective, and environmentally responsible electrical service, while demonstrating both co-operative responsibility and support for the communities we serve. SMPA serves approximately 10,000 members and 15,000 meters and supports local communities with over $400,000 annually in property taxes, over $400,000 in energy efficiency and renewable energy rebates and over $80,000 in scholarships, community donations and economic development grants. San Miguel Power Association is an equal opportunity provider and employer.
top photo: SMPA powerline in Rico, Colorado
August 17, 2023
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