Rates

• MVEA hasn’t raised its rates in seven years. In that time, the cost of business has gone up. Our cost for materials and supplies has increased significantly and is magnified by supply chain issues and inflation.
• As a not-for-profit cooperative, MVEA purchases electricity from Tri-State G&T on behalf of our members. The price of power is increasing from Tri-State G&T to MVEA by 8% effective January 1, 2024.

The average residential member in our territory uses 925 kWh and is likely to see an increase in their bill of about 6.9% or $8.05 per month, which includes the increase in the monthly grid access fee. Residential rates will now be the same cost per kWh for members using under 1500 kWh per month as they are for members using more than 1500 kWh per month.

The rate change for residential members will be effective on bills calculated after January 1, 2024.

• SmartHub is MVEA’s bill payment and account management tool that makes it easy for members to monitor and manage electric use by the day and hour. Members can also find an overview of this information on their bill.

• Our new bill calculator allows members to plug their usage into the form to see what rate option works best for them. If you can shift your electricity use to morning or late evening hours, outside of our On Peak hours of 5-9 p.m., perhaps the Time-of-Day rate would provide cost savings (Net Metering accounts are not eligible for Time-of-Day rate). For an in-depth analysis of your usage and if this switch would benefit your household, please reach out to our Member Services dept. at 1-800-388-9881 or at memberservices@mvea.coop.

• Check out our energy efficiency rebates. By participating in one of our energy efficiency programs, you may be able to use less electricity and save on your monthly electric bill. We offer a home energy audit and an appliance calculator on our website to help you decide if upgrading your electric home products is right for you.

MVEA has leveraged technology, cut costs, and lowered borrowing costs to keep operating expenses low and has not raised its rates since 2017 despite rising material costs, supply chain shortages and inflationary pressure. The increased price of power is simply too large to overcome with other operating cost savings.

• Yes.The increase in power prices is impacting utilities across the state and nation.
• This increase is comparable to recent increases made by other Colorado electric utilities, including cooperatives, municipal, and investor-owned utilities.
• This is the first general rate increase we have made since 2017. Since that time, inflation has risen 22% and our costs to provide electric service have also increased.

• Assistance is available for members who qualify through a MVEA program called Operation Round Up. While this program cannot pay your electric bill, it can help provide funds to pay your other monthly expenses. The program serves the needs of the people dealing with catastrophic situations that prevent them from sustaining basic needs.

• Budget billing is available to eligible members in good standing and provides 12 equal monthly billing amounts for electric use. Budget amounts are calculated from the member’s previous 12 month’s bills and adjusted for any rate changes that were effective during the year. The budget amount will be recalculated annually.
• Discover Goodwill administers the Low-Income Energy Assistance Program (LEAP), which provides home heating assistance to households with income up to 60% of the Colorado State Median Income. LEAP is a federally funded program that helps eligible Colorado households pay a portion of their winter home heating costs. To apply, visit www.colorado.gov/cdhs/LEAP or call (866) 432-8435.

• Energy Outreach Colorado brings together a network of industry, state and local partners to support, stabilize, and sustain Coloradans to afford their energy needs. Its programs include: bill payment assistance, heating system repair/replacement, energy efficiency upgrades, energy education, and access to state programs (such as LEAP) that work in partnership with their services. Visit www.energyoutreach.org/programs to learn more or call (303) 825-8750.

Yes, the adjustment will impact all members in all rate classes.

• The time-of-day rate provides an opportunity to members to change their electric usage habits to take advantage of off-peak times to reduce grid overload. For example, a time-of-day rate member will pay only $0.075 per kWh between the hours of 9 p.m. and 5 p.m. but will pay $0.29 per kWh between the hours of 5 – 9 p.m.
• The new peak window will benefit time-of-day members as it will be narrowed from 5-10 p.m. to 5-9 p.m., allowing these members to increase the duration per day to use energy off-peak.
• Net Metering accounts are not eligible for Time-of-Day.

• As a member, you are more than a customer: you are both a member and an owner of the cooperative. In fact, you invest in the cooperative each time you pay your monthly electric bill. Your investment in the cooperative helps to ensure the financial health and stability of the co-op and is returned to you through the allocation and retirement of capital credits. It’s an aspect of being a co-op member that is unique.
• Capital credit allocation is a process to attribute net margins to a member’s account. Allocations occur when MVEA earns net margins in the previous calendar year. Because MVEA’s 2022 net margins were positive, they will be allocated to each member’s account in December 2023.
• MVEA members share in the financial prosperity of the cooperative through the retirement of capital credits. A retirement is the amount of cash you receive back from your capital credits allocation. The amount retired is decided annually by the MVEA Board of Directors. After a number of years, if financial conditions permit, and MVEA’s mortgage requirements and by-law provisions are met, the Board may decide to retire capital credits back to MVEA members.

MVEA purchases power from our wholesale power provider, Tri-State G&T, which accounts for 65% of our overall operating budget. The cost of power includes the cost to maintain and upgrade infrastructure, provide safe and reliable services to members, and meet environmental and regulatory requirements.

• For a little over $1 per day, the grid access charge ensures each member is contributing to operating, maintaining and improving MVEA’s system for existing and future members alike. It offsets the cost to operate and maintain our system and to ensure our service is available to all members at the flip of a switch, independent of their monthly energy use.
• MVEA’s grid access charge helps offset many of the regulatory and business requirements associated with the costs of operating an electric cooperative and providing a service: the operation, repair and maintenance of MVEA’s entire system of lines (including materials), meter testing, pole inspection, tree-trimming, interest, depreciation, and property tax expenses, as well as insurance.

The PCA highlights changes in the cost of fuels used to generate and transmit electricity. If the cost of generating and transmitting electricity is higher than anticipated, those higher costs are spread across all co-op members. When the cost is lower, the savings are passed on to members as well. This line item will show as $0.00 on your bill through 2024.

Rate Change Communications

MVEA has been discussing the 2024 rate increase since February 2023 in Colorado Country Life Magazine, community events, and member meetings. Below are all rate communications published in MVEA’s CEO Article of Colorado Country Life Magazine.

• February 2023
• March 2023 
• May 23 
• June 2023 
• July 2023 
• August 2023 
• September 2023 
• October 2023 
• November 2023 
• December 2023