Inflation and rising costs for equipment, labor, insurance, and infrastructure maintenance make it increasingly expensive to operate and maintain the electric system.
San Miguel Power Association (SMPA) has announced a proposed electric rate increase for all consumers, scheduled to take effect on December 15, 2026. The proposal is designed to ensure balanced cost recovery in the face of rising expenses while maintaining SMPA’s commitment to providing members with reliable power and choices in how they manage their energy use.
For most residential consumers, the proposed change includes a $9 increase to the monthly access charge, bringing it to $42.00 per month, a 6¢ increase to the on-peak energy rate, bringing that rate to 31¢ per kilowatt-hour (kWh), and a .3¢ increase to the off-peak energy rate bringing that rate to 11.3¢ per kilowatt-hour (kWh).
Wholesale electricity remains SMPA’s largest expense. Increases in the cost of purchased power continue to put pressure on member rates. Additionally, bolstering investment in fire mitigation is essential for managing increasing risks related to wildfire.
The proposed rate structure balances these costs between monthly access charges and energy usage while preserving opportunities for members to manage their bills through their energy choices. Members can help control costs by shifting flexible electricity use to off-peak hours, when energy rates are lower. Options such as charging electric vehicles overnight, using programmable thermostats, and taking advantage of energy efficiency programs can help members make the most of these lower rates.
SMPA recognizes that rate increases affect household and business budgets. The Association’s goal is to recover the costs of providing electric service responsibly while continuing to deliver reliable power, maintain critical infrastructure, and protect the long-term interests of its members.
For more information and to see the proposed rates and available energy efficiency programs, members can visit the Rates page. They can also send comments to comments@smpa.com. The Board will likely vote on the rate proposal at their November 17th virtual meeting, held on the Zoom© platform. The meeting will be open to the public and the board will hear member comments soon after the meeting starts at 9 AM. Register here.