SDCEA is committed to provide the best possible service to our members and at the least cost needed to provide that service. That’s why we will be phasing in future rate changes that will: (1) itemize the costs to serve our members and re-balance those costs to make the coop more financially stable in the face of rapidly changing internal and external costs, and (2) allow you to take control of your energy consumption and maximize savings on your electric bills in the years ahead.

These rate changes will allow us to continue to provide the same high level of service you expect and depend on to power your homes and businesses.

SDCEA is a member-owned not-for-profit electric cooperative, and that is why we are committed to serving our member-owners well. That means we strive to provide reliable electric service, including rapid response to outages, but also personal care in member services and energy programs. We work every day to control costs while supplying reliable, affordable electricity to our members who depend on this essential service. Costs to operate the cooperative are shared among all members in the most equitable way possible. 

While SDCEA has not raised rates since 2017, materials and labor costs have increased. We must also continue to maintain and improve the infrastructure of our electric system to assure reliability. Wholesale power-supply prices to SDCEA are not constant, but vary based on off-peak and on-peak times when lesser or greater amounts of power are consumed.

Since 2020, SDCEA has been performing a review to determine if the current rates meet the objective of recovering the costs of doing business, treating members fairly, and encouraging member behavior that helps accomplish cooperative/public policy objectives.

From this review, we have determined that some changes to rates are needed. We want to alert and inform our members to these anticipated changes, which are expected to occur in 3 phases. These phases include:

• Phase 1 – Rate Restructure (Itemization of costs to be shown on bills & introduction of innovative member-choice rates)
• Phase 2 – Update of Cost of Service (COS) (the last COS was based on 2019 and costs have escalated significantly in the 3 years since)
• Phase 3 – Updated Rate Review (To be informed by the new COS)

Phase 1 changes are being considered by the SDCEA Board to be implemented in 2023. These changes are focused on: (1) a simple itemization of costs to be shown on member’s bills, (2) an increase in SDCEA’s Service Availability charge to cover basic fixed costs, and (3) rollout of introductory member-choice rates which provide members with the opportunity to better manage their electricity use and save money.

SDCEA will offer an introductory pilot program for members who would like to save on their electricity bills by taking part in our new Time of Use rate, where the cost per kWh varies based on when electricity is used. This is a voluntary rate – our members must elect to opt-in to it, limited to 300 new accounts.

Through this initiative, and a future plan for an energy demand rate, SDCEA is encouraging customers to shift as much electric usage as possible to times with lower power demands – encouraging smarter consumption that can lead to more savings on your bill. Education initiatives will also be offered to help members better understand how taking advantage of off-peak hours can benefit them financially.