San Miguel Power Association is proposing a rate hike for the second year in a row, as it wrestles with infl ationary pressures and an increase in power supply costs.

The access charge for single-phase, non-demand service — which accounts for 93% of SMPA’s roughly 10,000 members — would rise from $23 a month to $25 a month, an increase of 8.7%. Access charges would increase at a commensurate $2-a-month rate for other service levels. Energy charges would remain the same.

The SMPA board of directors is expected to vote on the rate increase at its meeting next week. If approved, the change would take effect in January, one year after the access charge rose from $21 a month to $23 a month.

SMPA spokesman Alex Shelley said inflation is one reason for the decision to seek a rate increase. But a bigger factor is the fact that Tri-State Generation and Transmission Association, the rural electric cooperative’s wholesale power supplier, has indicated it plans to raise the price of supplying that power by 6.2% in 2024. SMPA says that wholesale power accounts for roughly 52% of its overall expenses.

Shelley said the proposed access charge increase is expected to generate an additional $350,000 in revenue, but it will not cover the rise in wholesale power costs. SMPA has deferred revenue several times over the last four years to help cover expenses and limit the number and percentage of rate increases.

“The goal is to prevent shock (to ratepayers),” he said.

SMPA is asking its members to offer comments on the proposed rate increases at the board of directors’ Oct. 24 meeting in Nucla at 170 W. 10th Ave. Members can also provide comments via email at rates@smpa.com.

To attend the meeting remotely, click here for the Zoom link.