Jessi Marlatt
At the Tri-County Commissioners meeting on Monday Jan. 9, San Miguel Power Association (SMPA) presented the rate structure for demand meters. Commissioners from Montrose, San Miguel, Ouray and San Juan counties were present to learn about the demand rates. Demand rates are a way for SMPA to create a fair balance among customers.
San Miguel County Commissioner Art Goodtimes stated he has called for a moratorium on installation of smart meters in his county until SMPA is able to conduct a presentation on the new technology for the community. SMPA General Manager Kevin Ritter agreed to set a date and explained that demand meters are a different subject from smart meters. The presentation began.
SMPA bills each customer differently based on the rate and volume of energy consumption. Ritter said there are roughly 18 different categories and ways consumers are billed by the publicly-owned co-op. One of these billing categories is called a “Demand Rate,” which a consumer is placed on if they consume more than 20kWh of power in a rolling 15 minute period throughout a billing cycle.
Imagine a six-lane highway. All lanes are needed to maintain uninterrupted flow of traffic during rush hour but many of the lanes may remain empty during much of the day. The same is true for the infrastructure of electricity. The system must be built to accommodate the highest demands of usage. SMPA has a different rate structure for the consumers that make it necessary to have the “six-lanes of traffic.”
SMPA has a three step process when switching a consumer to a demand rate. First, a customer is notified by mail that their energy consumption exceeds 4000kWh in one billing cycle; secondly, their meter is switched if consumption habits do not change within 60 days, and the new rate is implemented. As soon as consumers are notified of the possibility of being put on the demand rate, they are given the option to have a one on one consultation about their energy consumption.
Ouray County Commissioner Heidi Albritton stated she had been contacted by residents of the county that felt the three-step process has not been followed when they were put on the new rate.
Ritter stated that SMPA is not responsible for lost mail or people not reading the information contained within their bills.
Of the 14,000 SMPA accounts, nearly 700 are currently on the demand rate. Within Ouray County there are 118 demand accounts of the 3,436 total service accounts. The 700 number includes all demand accounts: residential, commercial and irrigation.  
“It’s important to note that some of these accounts have always been demand, some were put on the rate in January 2011, and some have been switched since then,” said Becky Mashburn, SMPA Communications Executive.
In April this year SMPA will raise rates across the board for all consumers due to rate increases that became effective Jan. 1 from Tri-State, an electric generation and distribution cooperative that spans four states with 44 member companies. Tri-State increased rates by 4.6 percent this year.
“We wanted to hold out as long as we could on the rate increases so our members didn’t get hit during the winter months when their bills are already high,” said Mashburn. The exact date and increase has yet to be determined.
“We’ll know more about the way our rates are headed after the board meeting this month, but we are anticipating an increase this spring. We also anticipate more changes in 2013 as Tri-State completes their rate restructure. Energy prices will continue to increase in the future, which is one of the reasons we are investing in new technology, like advanced meters, to make sure we’re operating as efficiently as possible and maintain quality service,” said Mashburn.