Described location selection, safety features, firefighter training and community benefits.

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above photo
San Miguel Power Association (SMPA) linetruck parked on Hwy 145 at Rico - early evening April 1, 2026. SMPA hosted a public presentation at Fireweed Cafe to explain its battery energy storage microgrid project.
> Ore Cart photo

Electric service reliability and battery energy storage safety were the key topics of the San Miguel Power Association "Community Power Hour: Let's Talk Resilience in Rico," April 1, 6:00 - 7:30 PM at Fireweed Cafe. A few inches of wet snow had accumulated during the day.

SMPA sent seven personnel to the public meeting, including experts in member and energy services, key accounts, engineering, renewable energy/microgrid design, two Telluride-area linemen, and a member of the SMPA board of directors from Ridgway.

About 20 - 25 Rico SMPA members attended.

EcoAction Partners of Telluride organized the event and sent three representatives to provide refreshments, speaker introductions, timekeeping, and question/answer coordination.

Telluride School District has agreed to allow SMPA to use the Rico School grounds as the site of a Tesla Megapack outdoor battery electric energy storage system. An SMPA powerline delivers electric service from Sunshine Substation north of Ames along Ilium Rd, over Lizard Head Pass, and down the upper Dolores River valley to Rico. It passes the school site on the west (Town Park) side of an alley. The school is on the east side. SMPA will connect the batteries to this powerline for charging, and to supply backup electric energy for the entire town during electric service interruptions caused by powerline damage or planned shutoffs.

"Rico Power Hour" - April 1, 2026 at Fireweed Cafe. SMPA Manager of Member and Energy Services Wiley Freeman points at a satellite image of upper Dolores River valley showing the route of the powerline from Ames to Rico, and rugged terrain.

Ore Cart photo

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Key info

• Rico's highest electric demand in the past three years was about 500 kiloWatts.
• Batteries will provide a minimum of four hours backup electric service to Rico when electric consumption/demand is greatest, longer when demand is lower.
• A Colorado Department of Local Affairs grant will pay for a large portion of the project cost.
• Rico SMPA electric members/consumers will not pay an additional charge on their monthly power bills for the battery backup system.
• Typical battery lifespan is 10 years.
• SMPA will remotely control the battery system to discharge stored electric energy during hours in which the entire SMPA service area experiences high electric "demand." SMPA purchases most of the electricity it delivers and sells to its members from Tri-State Generation and Transmission Association. The monthly wholesale peak demand charge is about half or more of the total Tri-State demand, the other part is kiloWatt-hours. Reducing the wholesale demand charge is known as "peak-shaving," and will help SMPA recover the cost of the battery system not funded by other sources.

Safety

"Safety is the first part of our (SMPA) mission statement, and we don't take that lightly." - Wiley Freeman.

Electric utilities have installed thousands of similar battery energy storage systems.

Safety has improved "exponentially" in the past several years. Motor vehicle fires occur more often than electric utility battery energy storage fires.

SMPA will provide initial and regular refresher training for Rico Volunteer Fire Department responders.

Electric service interrupted 2 hours later

Rico experienced a power outage beginning at about 9:40 PM, two hours after the "Power Hour" presentation. SMPA crews restored service about four hours later, April 2 at 1:57 AM. SMPA's Wiley Freeman told Ore Cart by email that a tree fell across the powerline and tripped short-circuit interrupting equipment near Ames. The interruption affected 459 SMPA members.

Three SMPA linemen completed powerline repairs and restored service. Two of this crew attended the Rico "Power Hour" earlier in the evening.

"It was a tree on the line that was only accessible after crossing the river by foot," reported Wiley by email April 16. "They used hand saws on the end of the extendo to cut the tree apart and off the line."

"Extendo" is "extendo stick" or "hotstick," a telescoping insulated fiberglass pole with tool attachments for working on powerpole equipment from ground level.

Presentation to Rico Fire Protection District board - April 20

Wiley and Ridgway-based consultant Terry Schuyler provided more electric service reliability and microgrid battery safety details at the Rico Protection District monthly board meeting, April 20 at the Rico Firehouse. Terry is a Ridgway town council member and Ridgway Fire Protection District board member.

Rico building codes require RFPD to approve the battery project, stated Wiley.

Reliability

Rico is SMPA's most vulnerable to electric service interruptions community.

Distance from Rico to the neighboring electric utility Empire Electric Association's nearest 3-phase powerline is 16 miles south along Hwy 145. Constructing a new powerline this distance for backup service to Rico would be too expensive.

An isolation switch is planned for installation north of Rico in the Atlantic Richfield reclamation area. SMPA will operate the switch by remote control when an electric service interruption occurs at Rico to isolate (disconnect) Rico and create a microgrid island. Next, the battery backup system at the school site switch will close, connecting it to the nearby powerline and restoring electric service to Rico. Automatic switching not requiring human action may be considered.

The Colorado Department of Transportation (CDOT) shop at the north edge of Rico is included in the microgrid island area.

As wildfire risk due to drought has increased, Public Safety Power Shutoff (PSPS) events during high-wind periods have been necessary in the Colorado Front Range area. SMPA operates 2,000 miles of powerline in its service area, "The distance from here to Guatemala," explained Wiley. Tri-State Generation and Transmission Association delivers high-voltage power to SMPA substations. If either electric utility initiates a PSPS affecting Rico, the microgrid battery will provide backup service.

Solar panels installed by Rico homeowners and businesses will help to recharge the microgrid batteries during a power outage, depending on sunshine availability. These individual solar power systems automatically disconnect during a power outage, but will reconnect when the microgrid battery reenergizes power lines in Rico.

Above: electric meter (left), switches, and rooftop photovoltaic (PV) panels inverter-controller (right) at Town of Rico Public Works Facility (Town Shop).

Below: inverter display shows 5,856 Watts of PV electric energy production flowing from rooftop panels, converted from "direct current" (DC) to "alternating current" (AC). PV electric energy not consumed by electrical equipment in the building flows out through SMPA's transformer at the site and onto the nearby powerline.

Ore Cart photos
April 30, 2026

Safety

The most common battery cell chemistry for large-scale electric energy storage is lithium iron phosphate. This is the battery type selected for the Rico battery energy storage system. Electric vehicles use lithium-ion, which is lighter but is more susceptible to thermal runaway (overheating).

If the temperature in a microgrid battery cell rises, it disconnects from other cells. If this does not stop the temperature rise, a secondary heat suppression system engages.

Historical data reveals no recent releases of gases outside of electric battery energy storage nearby areas if overheating occurs. Such gases are carbon dioxide and carbon monoxide, and are not toxic, stated Wiley.

The Rico battery system design complies with National Fire Protection Association (NFPA) 855 Standard for the Installation of Stationary Energy Storage Systems.

Electric utility battery energy storage capacity is growing in Colorado and the U.S., indicating confidence in the technology. An electric cooperative utility at Brighton, a north-Denver suburb, has 100 megaWatts of battery energy storage installed. The total battery capacity installed by U.S. electric utilities is 18 gigaWatts.

The contractor selected by SMPA for battery system installation has completed similar work for Holy Cross Energy and Poudre Valley Rural Electric Association. Both utilities are Colorado electric cooperative associations, similar to SMPA.

Next Step

RFPD board members requested some changes to a draft Memorandum of Understanding (MOU) provided to RFPD before the meeting. SMPA will provide an updated MOU with the requested changes for consideration at the May 2026 RFPD board meeting.

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more info
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