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A LETTER FROM HOLY CROSS ENERGY
PRESIDENT & CEO, BRYAN HANNEGAN
Holy Cross Energy Members,
This year marks 84 years of safe, affordable, reliable, and sustainable electric service to you, our members. Our cooperative is as strong as it ever has been. Our communities have weathered wildfires, mudslides, drought, and a pandemic in the past several years.
We are preparing for a changing landscape.
As we look to provide you with the best possible service now and in the future, we are preparing for and must plan to accommodate the changing landscape in which we provide electricity and services to our members.
The intermountain region is expected to increase in population over the coming years. Innovative technology continues to push our industry forward as our members and communities ask for new energy services. There are also increased wildfire and cyber security risks. Supply chain interruptions to our standard operating equipment have meant longer lead times to ensure we have everything we need to perform our jobs safely and effectively to keep your lights on.
In the future, it will no longer be sufficient for HCE to simply provide low-cost commodity electricity; we must also maintain a world-class electricity delivery system that enables all members to generate, exchange and consume power when they want it and how they want it. This means investing in and maintaining our electric grid infrastructure to serve you regardless of where your electricity comes from: your roof, your community, or many miles away.
Therefore, our rates are changing.
In order to maintain sufficient revenue to perform our vital functions now and in the future, we need to align our rates with our costs of service. To do so, we have created a more equitable rate structure for our entire membership. This new structure will ask each member to pay only for the energy and parts of the system they use each month.
After thoroughly reviewing our financial outlook and undergoing a cost-of-service model analysis, the Holy Cross Energy Board of Directors approved an updated multi-year rate strategy that will be implemented on September 1, 2023. By aligning our rates with our costs now, we will be able to stave off a significant increase in the future.
We all know that costs are rising across every part of the economy. But, through careful and thoughtful cost management, we can keep our rate increase below what we are all experiencing in other areas of our lives. On average, our rates will only increase by 2% in September.
Based on your individual usage patterns, you may see an increase or decrease, above or below 2%. Even with these changes, our rates will continue to be in the bottom third of all Colorado utilities’ bills. More information on how our rates are changing can be found below on this page.
What you can do now to minimize the impact.
HCE offers a wide range of programs to help you take charge of your electric usage and manage your electricity costs. With our rate restructuring, you can save money by decreasing your use between the hours of 4 to 9 p.m. Check your SmartHub account to learn more about your usage patterns and how to begin saving now in advance of these changes.
Another way to save on your bill is participating in Peak Time Payback (PTP). PTP rewards members for reducing electricity usage during blocks of time when we forecast the need for electricity will be higher than usual. Since launching PTP in 2019, we have saved over $500,000 for our members and have paid participating members over $215,000. Due to this success, we will be increasing the payback rate for reducing your usage during peak time events by 50%. Click here to get more information and to enroll.
If you still have concerns about paying your bill, reach out to us to learn about our assistance programs. We can help you find out if you are qualified for bill payment assistance, upgrading to more energy efficient products and home weatherization, or participating in one of our other cost-savings programs.
As a cooperative, our membership is strongest when members take an active role. If you would like to ask questions, offer comments, or submit complaints to our Board of Directors, please complete the form below by April 30 to submit a comment.
Why are our rates changing?
As we look to provide you with the best possible service now and in the future, we have created a more equitable rate structure for our entire membership. After thoroughly reviewing our financial outlook and undergoing a cost-of-service model analysis, our Board of Directors approved an updated multi-year rate strategy that will be implemented on September 1, 2023.
1 –
The new structure better aligns our revenue with the way costs are incurred.
- This creates a more equitable cost allocation across our membership.
- By restructuring rates now, we will be able to stave off a more significant rate increase for our members in the future.
- This more equitable rate structure will have each member pay for the energy and parts of the system they use each month.
2 –
The new structure will increase our financial sustainability.
- The new structure will allow us to collect the necessary revenue to provide safe, secure, and reliable energy delivery to our membership regardless of the amount of energy sold.
- It will allow us to better manage the financial aspects of the transition to a clean energy future.
3 –
The new structure will keep HCE’s rates competitive with other Colorado utilities.
- Our goal is to remain in the bottom 1/3 of utility rates in the state.
- The new structure will lower the cost of energy for members and it will add flexibility to make it easier to manage costs through electrification and demand response.
What does Peak Demand mean?
For our members who have not previously had a demand charge on their bills, here’s some additional information to help you understand what it means, how it’s displayed on your bill, and why it’s important.
Demand is a key component of future growth and a necessary investment to supply the maximum requirement of electricity by all cooperative members. This investment is recovered by allocating demand costs to each member.
Much like a speedometer tells you how fast you are going at a given moment, a demand measurement tells you how much power you are using at that moment in time. Electric meters record demand as the highest average kilowatts reached and maintained within a 15-minute interval period.
And much like an odometer tells you how far you’ve gone in total, an energy measurement tells you how much energy you’ve used in total.
Demand allows us to bill our members based on how they use the grid. This better aligns our revenue to our cost-of-service study. Members will notice the kWh charge (Delivery and Energy Charges) decrease. This is made possible by realigning our members’ charges to accurately reflect the way we incur costs which will now include the demand charge during our highest cost time.
Another way to help understand the importance of demand is to think of electricity like water. Demand is like the flow rate of water coming out of your pipes, and Energy is like the amount of water that ends up in your bucket.
Just like a water utility must build a system that can support the maximum amount of water pressure demanded from its users at any given point, we must build and maintain an electric grid that can support the maximum amount of electricity demanded from our members at any given point.
On the back of your bill, you can see what your 24-hour demand registered at during that billing cycle (measured in kW). Additionally, at the top right corner, you can see a time stamp of when that demand was registered. It was during that 15 minute period when the highest amount of power was being used in your home or business during that billing cycle.
Starting in September, we will only measure your demand from 4:00 p.m. to 9:00 p.m.; you will be charged based on your highest single 15-minute demand measurement from 4:00 p.m. to 9:00 p.m. during that billing period.
Electric meters record demand as the highest average kilowatts reached and maintained within a 15-minute interval period.
Starting in September, we will only be measuring your demand during our “Peak” hours, from 4:00 – 9:00 p.m.
You will be billed only on your one single highest demand measurement during that billing period.
Small Residential & Small Commercial
Members in these categories have a Peak Demand of less than 50 kW. Most residential members fall into the Small Residential category.
Large Residential & Large Commercial
Members in these categories have a Peak Demand of greater than 50 kW.
Frequently Asked Questions
- HCE worked closely with the The Brattle Group to build a Cost-of-Service model based on the previous year’s financials.
- The purpose of the model is to ultimately allocate cost responsibilities to each of HCE’s member classes.
- After thoroughly reviewing our financial outlook and undergoing a Cost-of-Service model analysis, the Holy Cross Energy Board of Directors approved an updated multi-year rate strategy that will be implemented on September 1, 2023. By aligning our rates with our costs now, we will be able to stave off a significant increase in the future.
- The last rate change was in 2018.
- We intentionally did not change rates during the COVID-19 pandemic due to the uncertainty faced by our members and their communities. Instead, we provided pandemic assistance funds to help members pay their bills.
As a not-for-profit electric cooperative, all excess revenue is either invested back into the cooperative to maintain a safe and reliable grid, or given back to our members in the form of Capital Credits (member equity checks). Our members are our owners, and there are no shareholders.
- Our rates will remain in the bottom third of all Colorado electric rates, even with this rate structure change.
- Through careful and thoughtful cost management, we will be able keep our rate increase far below what we are all experiencing in other areas of our lives. On average, our rates will only increase by 2% in September.
- Based on your individual usage patterns, you may see an increase or decrease, above or below 2%.
Starting September 1, 2023 the bill structure will be implemented, and it will first appear on your October 2023 bills.
- The intermountain region is expected to increase in population over the coming years.
- Innovative technology continues to push our industry forward as our members and communities ask for new energy services.
- There are also increased wildfire and cyber security risks. Supply chain interruptions to our standard operating equipment have meant longer lead times to ensure we have everything we need to perform our jobs safely and effectively to keep your lights on.
- In order to maintain sufficient revenue to perform our vital functions now and in the future, we need to align our rates with our costs of service.
- No, increased renewable resources provide low-cost fixed-price contracts that are not subject to volatile commodity (i.e. natural gas) pricing.
- Local renewable development provides both savings and increased local supply.
- 2023 marks the first year of a multi-year rate strategy that will be implemented on September 1, 2023. The proposed rates will change each year for three years.
- Our wholesale energy calculation is based on calendar year. For calendar year 2022, our wholesale rate was $0.04441/kWh.
- Demand has been charged on large residential and large commercial accounts on a 24/7 basis. Now Demand will be charged on all accounts for the highest demand recorded during the 4 – 9 p.m. when members typically use the most energy.
- Demand allows us to bill our members based on how they use the grid. This better aligns our revenue to our cost-of-service study. Members will notice the kWh charge (Delivery and Energy Charges) decrease. This is made possible by realigning our members’ charges to accurately reflect the way we incur costs which will now include the demand charge during our highest cost time.
- Demand is a key component of future growth and necessary investment to supply the maximum requirement of electricity by all cooperative members. This investment is recovered by allocating demand costs to each member.
- Members’ Demand Charge is recorded via the members meter for their greatest energy use in a 15-minute period during the 4-9 p.m. window. This is the capacity needed to ensure you have electricity when you need it.
- Adjust your usage behavior; try to minimize the number of electric appliances you use at the same time from 4 – 9 p.m.
- Sign up for Peak Time Payback.
- Invest in energy-efficient products and receive HCE rebates to help with the upfront cost.
- Call us! We want to work with you. Our MSR team can advise of our assistance programs or contact local agencies. Don’t wait to ask for help; we’re here for you.
Adjust your energy behaviors from 4:00 p.m. – 9:00 p.m.
Under the new rate structure, avoiding high energy usage during Peak Demand is an easy way to keep your bill low.
- Try to minimize the number of electric appliances you have on at the same time. For example, start your laundry after you’re done using your stove for the night.
- Schedule things like EV charging, laundry, dishwashing, and heat tape to run outside of the 4:00 – 9:00 p.m. peak hours.
- Pre-cool or pre-heat spaces in your home before peak hours.
- Set large appliances like boilers and water heaters on timers to only run outside of peak hours.
Sign up for Peak Time Payback.
Starting in September, payback amounts increase 50%
- Get rewarded with bill credits for reducing electricity usage during our Peak Time Payback events.
- We calculate your average baseline usage before the event and compare it to what you actually use during the event.
- If you reduce usage, we save money and share that savings with you!
Energy Efficiency Rebates
We’ll help with 25% of the upfront cost when you invest in qualifying high efficiency equipment for your home or business.
Our 2023 rebates allow for:
- Up to $5,000/year for Residential Members.
- Up to $7,500/project for Commercial Members.
- Qualifying projects include Heat Pumps, Building Envelope & Insulation, Heat Pump Dryers & Water Heaters, Heat Tape Timers, Induction Cooktops/Ranges, Smart & Programmable Thermostats, and more.
Optional Time of Day Rate
For residential and small commercial members who are able to substantially minimize their energy usage during our Peak Demand timeframe of 4:00 p.m. – 9:00 p.m.
- Time of Day rates will also move to separate Energy and Delivery Charges for both On-Peak and Off-Peak hours.
- Since the Time of Day rate structure charges significantly higher for On-Peak hours, there is no separate Demand Charge for members who sign up for this optional program.
- One-year minimum participation is required under this rate.
- Power+ Participants are not eligible for Time of Day Rate.
- To sign up, please contact our Member Services Team at (970) 945-5491.
Optional Time of Day Rate – Starting September 2023
Peak Hours: 4:00 pm – 9:00 pm
7 Days a Week
| Membership Fee | $16.00 / month |
| Delivery Charge – Off Peak | $0.022 / kWh |
| Delivery Charge – On Peak | $0.088 / kWh |
| Energy Charge – Off Peak | $0.041 / kWh |
| Energy Charge – On Peak | $0.163 / kWh |
| WeCARE Fee | 2% |
| Peak Demand Charge | None |
| On-Peak Total | $0.251 / kWh |
| Off-Peak Total | $0.063 / kWh |
The full official proposed changes to the HCE Electric Service Tariffs, Rules, and Regulations is available here.
Submit your comments to the HCE Board of Directors
As a cooperative, our membership is strongest when members take an active role. If you would like to ask questions, offer comments, or submit complaints to our Board of Directors, please complete the form below by April 30 to submit a comment.