San Isabel Electric Association, Inc.
Position on Solar Rebate Program

While electric cooperatives and investor-owned utilities both provide electric service to the communities they serve, it is important to understand the two utilities operate on completely different business formats.

Investor owned utilities (IOU) such as BlackHills Energy are owned by many investors who may or may not be an actual customer receiving electrical service. The company’s primary mission is to make a profit for their shareholders while providing electric service to their customer. An IOU is regulated by a state public utilities commission which allows the IOU to build in a reasonable profit into their rate base.  By the year 2020 investor owned utilities in Colorado will be required to provide 20 percent of their power from renewable sources with 96 percent coming from wind and four percent coming from solar energy. At least one-half of the solar requirement must be generated by solar-electric systems located on-site at customers’ facilities.IOU’s have more flexibility in their rates and are allowed to pass the costs for such programs as solar rebates on to all of its consumers.

San Isabel Electric Association on the other hand is a member owned utility and is a not for profit company. Because we do not make a profit, our electric rates are used solely for the purpose of operating the cooperative. All members are treated equally. Regardless of how many accounts a member has, they each receive one share as a member of the company so that all members benefit equally from service. 

In order for San Isabel to participate in a solar rebate program, a few members would receive the benefit, but all other members would have to pay for it. It is not a benefit to all of our membership to cover the cost of a rebate for the few that would participate. The only person receiving the benefit from the rebate is the person installing the system. For all other members, it is an expense. 

Additionally, the basic rules of economics indicate that as more people use solar power, a reduction in traditional electricity sales would take place, thus increasing power cost to other SIEA members.   It is for these reasons that San Isabel does not currently offer a solar rebate program. However, San Isabel Electric Association recognizes that the emerging field of renewable energy is complex and ever changing. We consistently evaluate of thelatest technological advances, programs and legislation to ensure that we follow the best course of action to meet the needs of our membership as a whole.

By the end of 2010 members of San Isabel Electric will receive a portion of their electric power from the renewable energy of the sun. San Isabel’s power provider, Tri-State Generation and Transmission has embarked on developing a 30-megawatt (AC), 500,000-panel solar photovoltaic power plant in northeastern New Mexico.  The “Cimarron I Solar Project” is the largest photovoltaic project by an electric cooperative and among the largest facility of its kind in the world. This project will be located between the towns of Cimarron and Springer, Mew Mexico and will provide solar power to the 44 electric cooperatives served by Tri-State, which San Isabel is a member.   Cimarron I is part of Tri-State’s overall portfolio and will help meet the Colorado and New Mexico members’ Renewable Portfolio Standard requirements. 

• Alternative Renewable Programs and Energy Efficiency Programs available for San Isabel Members:
  • Green Power Program - For an additional premium of $1.25 per month per 100 kwh block you can purchase your electricity from a renewable source.
  • Net-Metering – Harnessing the energy of the environment and the sun, San Isabel Electric offers net metering to its members. Call 719-547-2160 or toll free at 1-800-279-7432 and speak with a net-metering expert today about what program opportunities will work best for you.
  • You can save as much as half the cost of traditional heating with Electric Thermal Storage technology. ETS works by taking advantage of San Isabel Electric’s off peak electric rates. ETS works when electric rates are lower by storing heat so it’s ready when you need it. And because it works during off peak hours, you’re conserving energy too. It’s the perfect alternative to wood burning stoves, electric baseboards and other traditional heating methods.
  • Get in the loop with Compact Fluorescent Light Bulbs from San Isabel Electric. SIEA members can purchase CFLs at area offices at a great price.   These energy efficient bulbs last longer, offer big energy savings, great performance and cooler operation. 
  • For many years, San Isabel has offered a lease program using photo voltaic cells mounted on trailers for remote stock pumps. This service has assisted ranchers and other members with remote access needs where a using traditional power line is not feasible.

For more information on San Isabel Electric Association renewable energy programs visit www.siea.com.

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