Frequently Asked Questions

Frequently Asked Questions

Did the San Luis Valley REC raise electric rates to collect more revenue overall?
We expect to generate about the same amount of revenue from electric consumers this year and next year as we did last year. Although we’ve heard concerns from some members who saw their bills increase, there has been a roughly equal amount of savings for other members. The goal was not to generate more overall revenue but to more equitably share costs among members based on how and when they use power and the demands they put on the electric grid, the system of power generation, transmission and distribution that provides reliable power 24/7.

Why were demand charges introduced for residential consumers?
Electric rates with a demand component, which charges for relatively brief spikes in a member’s electricity usage, have been around for a long time for farmers who irrigate and other large commercial users. But previously, the technology didn’t exist to measure these spikes in usage among residential consumers.
In the last few years, the REC has changed residential members’ meters.  The new meters allow the REC to measure not just how much total electricity consumers use over a month but more precisely when that electricity is used.

Why is it important to measure and charge for spikes in demand?
Demand pricing more fairly shares the costs that these spikes in electricity usage place on the electric grid. It can encourage people to make simple adjustments to their electricity usage patterns to reduce overall costs to the system – and that benefits everyone.
The electric grid must have enough capacity to meet the highest spikes in demand when a lot of consumers use a lot of power at the same time. Spreading out electricity use and avoiding big spikes reduces the demands on – and the overall costs of maintaining – the power grid. Remember that users can moderate these spikes in usage. One example would be staggering when they run appliances that use a lot of power and not turning them all on at once.

Why were the rates revised again this year, starting Dec. 1?
REC members concerned that they were paying more under the new rate structure filed complaints with the Colorado Public Utilities Commission. One complaint was filed by a couple dozen members and another was filed by the Town of Crestone. Earlier this year there was a preliminary hearing to discuss those complaints, but it was agreed to try mediation instead to see if an agreement could be reached without a drawn-out and potentially expensive legal process. In line with the agreement reached in the mediation process, the demand charge was significantly reduced, effective Dec. 1 and will remain at that rate until April 1, 2021.

Demand charges
For the rates that have a purchase power demand charge (Time of Day), that demand is measured during the peak period, which is Monday through Saturday, 12 noon through 10 p.m.
There is also a distribution demand charge which is the highest 15-minute usage during the billing month (which is a calendar month). This charge covers the cost of the electric infrastructure in place to keep homes and businesses connected to REC.

Net meters
Previously, REC’s fixed costs were included in the kilowatt-hour charge and since up until just a few years ago, that methodology worked to fairly recover the cost of providing electricity. As more and more net meter installations occurred, those REC members who did not have a net meter installation were increasingly subsidizing members with those net meter installations. Essentially, members without net meters were helping to pay net meter owners’ investments. With the new demand rate in place, this is no longer the case.

ETS units
The original Cost of Service Study indicated the need for a six percent rate increase for the Time of Day customers. With the April 1 rate change those members could have seen an approximate six percent increase if their ETS units were appropriately sized for the space and used diligently and other electric appliances were controlled. The interim rate, which went into effect on Dec. 1, 2019 as a result of the Colorado Public Utilities Commission complaint settlement, substantially reversed the benefit of using the ETS unit diligently on off-peak hours.

Managing demand
The REC has been piloting demand controllers, which in many instances have great potential to help members manage demand. As REC continues to gain experience on how these devices can benefit members, the information will be shared.

Understanding demand
As more appliances in your home run simultaneously, the rate at which you are consuming electricity increases. For example: Mary and Joe both use 3.3 kwh when cooking dinner and running their dishwashers— 1.5 kwh for the range and 1.8 kwh for the dishwasher. However, Mary cooks her food for one hour, then she runs her dishwasher the next hour. Joe cooks his food and runs the dishwasher while he’s cooking. Mary’s total demand is 1.8 kw, whereas Joe’s is 3.3 kw. Both members are using the same amount of energy but putting a different demand on the electric grid.

 

 

 

 

 

Please visit our Sign Up for Service page for information on obtaining SLVREC service.

SLVREC's Energy Foundation and GEO's Weatherization Program work with local weatherization agencies throughout the state to provide free weatherization services to Colorado residents. Qualified homeowners or renters can apply for these services by contacting their local weatherization agency. Visit our Weatherization and Energy Savings Programs page for more information.

For further information, please see Tree Trimming Information.

For further information, please visit https://www.whatissmartenergy.org/what-are-smart-meters

Yes. For further information, please visit our Online Bill Pay page.

In addition to making a payment through the mail, online, over the phone or in person at SLVREC's office in Monte Vista, you can also make a payment at any of the following banks: First Southwest Bank branches in Alamosa, Center, Del Norte and Saguache; Community Banks branches in Alamosa, Antonito, Center, Crestone, Del Norte, La Jara, Moffat, Monte Vista, San Luis, South Fork and Saguache and Miners & Merchants Bank in Creede.

First, check your fuses or breakers. Make sure they are all on. If you find a problem with the fuses or breakers, you will need to contact a local electrician for repairs. Any equipment beyond the member's meter is the responsibility of the member.

If you determine that your fuses and breakers are okay, check with your neighbors to see if their power is off. When you call the office to report an outage, please provide your name, address, phone number and any information you have on what may have caused the outage. In most cases we will attempt to call back to confirm that your power has been restored.

It is important that you call the cooperative directly. Please do not tie up emergency responders' lines at police or fire departments to report an outage unless the outage has been created by or is creating a life-threatening emergency. If our crews are requested to respond to such an outage and the problem is on the member's side of the meter, the member may be billed the actual cost of labor and overhead.

Report outages 24 hours a day at 719-852-3538 or 800-332-7634

Every account at SLVREC must pay a wires and maintenance charge each month, even if you have no use on your account. This fee covers fixed maintenance costs for the substations and power lines and poles that provide your service. This fee makes it possible for you to have electric service at your home or business.

A cooperative is a type of business organization; co-ops are member-owned and democratically controlled. Unlike other types of businesses, cooperatives are not managed by a board of shareholders in a distant location. Cooperatives are locally owned and locally controlled. More information on cooperatives, SLVREC's board of directors, SLVREC's annual meeting and other topics can be found in the About Us section of this website.

At this time, Colorado has not deregulated the electric utility industry. You may not choose your utility provider. Service territory maps are available at SLVREC's office if you would like to verify the utility who serves a specific location.

As a cooperative, each and every member has a voice through the cooperative's elected board of directors. If you have a comment, good or bad, contact the board member for the service territory in which you reside. You can find contact information for all of the cooperative's directors on page 2 of each issue of the cooperative's newsletter, The Newsboy.
If you prefer to contact the cooperative via email, send your message to power@slvrec.com. Place a directive in the subject line of your message so that the message can be directed to the appropriate individual.

Data Center FAQs

A data center is a facility that stores and processes digital information. If you use a phone, computer, streaming service, cloud storage or AI tool, you are using a data center somewhere.

No. There are many types of data centers. The very large facilities making national news are often called hyperscale data centers. They are much larger than what most rural communities would consider and are typically designed to serve major regional or national demand, including growing AI-related demand.

Smaller facilities are often called edge data centers. These are typically designed to be closer to users or specific applications and can be a better fit for rural communities when they are properly sized and carefully reviewed.

No. The large hyperscale data centers making headlines are not the type of projects being discussed locally. Those projects usually look for much larger power, water, land and infrastructure resources than are being considered in the San Luis Valley.

Yes. Data centers are not a new concept. Hospitals, businesses, schools and other organizations have used data storage facilities for years. Today, many of those services have moved to the “cloud,” which means the data may be stored somewhere else in the country. But anytime we use a phone, computer, streaming service, cloud storage or AI tool, we are relying on a data center somewhere

AI has created a new wave of demand, which is why large hyperscale data centers are making headlines. The Valley does not have the resources for these headline hyperscale data centers. The local conversations are about very small rural data center opportunities that would still need to make sense for REC members and the San Luis Valley.

The conversations SLVREC has had involve much smaller rural or edge data centers. Examples include a small local project tied to agricultural automation, a startup-size load around 10 kW, or a possible 2 MW project in a modest industrial space.

These could range from a10 kW load… which is similar to the load of a house, to a 2 MW project that could fit in a roughly 40-by-40-foot metal building, a 20-foot container or another modest industrial space.

No. The smaller data center concepts SLVREC has discussed would not rely on water-intensive cooling. They would use cooling systems more similar to commercial or residential air conditioning.

No. SLVREC’s position is that growth pays. If a new industry or development creates new costs or system upgrades, that customer is responsible for paying those costs, not the rest of the membership.

Yes. A steady load can create revenue that helps pay for the rural electric system SLVREC already maintains. Added revenue from a properly sized project could help offset costs for existing members. Maintaining poles, wires, substations and electric infrastructure across a rural area is expensive. Local irrigation used to make up more than 60% of SLVREC’s revenue for system costs, but today it is closer to 40%. New steady loads can help support the system and our members.

Yes.  SLVREC has local system capacity because some areas have been underutilized as irrigation load has declined over time. Smaller data centers would still go through an engineering review before anything moved forward.

No. SLVREC would study any proposed load just like it would for a home, industrial building or other large service. SLVREC’s role is to safeguard members from rate increases and ensure reliability.

No. The cost-causer pays. If a project requires upgrades, those costs would be included in the project proposal and paid by the new customer.

Data centers are getting more attention because AI and digital services are increasing demand across the country. It is important for local communities and county leaders to understand the difference between large hyperscale projects and smaller rural opportunities. 

Yes. The Valley has strong fiber capacity, including unused capacity already available through existing infrastructure.

A properly sized edge data center can support local economic activity, make use of existing infrastructure and add steady electric load that helps support the system. In some cases, it may also support services important to rural communities, such as agriculture, healthcare, education, communications or local business operations.

No. The message is not that every project is a good fit. SLVREC evaluates all new loads carefully, looking at system impact, cost, reliability and whether the opportunity benefits members.

SLVREC’s priority is to protect members, maintain reliability and keep services affordable. Any opportunity would need to support those goals and make sense for the San Luis Valley.

SLVREC is an electric distribution cooperative that operates an exclusive territory, meaning SLVREC is the only company that is allowed to sell electricity within its territory.  This also means that the cooperative is obligated to provide electricity to any person or company that wants to hook up electricity within that territory. SLVREC does not have the ability to say no to providing electric service to someone that is located within that service territory. SLVREC’s goal is to provide this service responsibly, make sure the person or company pays their own costs for hooking up this service, and to provide safe, reliable energy at the lowest possible rate. So, it is also important to understand what kind of companies may want to move into the Valley and how SLVREC can responsibly provide electricity to these companies in a way that ensures that it benefits all members, the co-op and the Valley as a whole.