The Ameresco and Holy Cross Energy solar facility, as viewed from the air in 2022 on the Colorado Mountain College Spring Valley campus near Glenwood Springs.Seth Anderson, CMC/Courtesy photo
The Holy Cross Energy Board of Directors have proposed a rate change to take effect April 1, seeking public comment over the next month before changes take effect.
The proposal was approved to move forward at the Dec. 16, 2025, board meeting. It introduces a new $1 per kilowatt demand charge for Small Residential and Small Commercial/General Services members, those with a monthly peak demand of less than 50 kilowatts.
Demand charges have historically been part of HCE’s rate structure for Large Residential and Large Commercial/General Services members, a press release states. Those existing charges will increase slightly under the proposal.
“The demand charge is designed to better align electric rates with the costs associated with each member’s share of electric grid capacity,” the release states. “It is based on the single highest 15-minute period of electricity usage a member demands (or requires) during the month, information which is already present on members’ current electric bills.”
While past increases have focused mainly on the Energy Charge or fixed Customer Charge, this proposal introduces or raises the monthly Demand Charge for all members, the release confirms.
“This change more accurately reflects HCE’s rising infrastructure and transmission costs, while also giving members more control over their bills by reducing their peak demand,” the release reads.
According to the release, the cost of building, maintaining, and upgrading the electric grid has risen in recent years. HCE is expecting significant increases in power supply and transmission costs from Xcel Energy beginning this year, and while a shift to lower-cost, cleaner energy sources could help mitigate the impact of these increases, the release states, “it has not entirely removed them.”
Because of this discrepancy, HCE’s cost to provide electric service will increase by approximately 5% in 2026.
“The Demand Charge will collect the additional revenue needed to cover the co-op’s increased capacity and infrastructure-related expenses in a manner more closely aligned with how HCE’s expenses are incurred, while ensuring that everyone pays for the parts of the system they use,” the release states.
HCE expressed in its press release that the company remains committed to maintaining affordable electric service at the same time that it is working toward increased reliability, safety, and sustainability. HCE members are able to manage demand charges and lower bills by spreading electric use throughout the day, rather than using multiple devices simultaneously.
From Jan. 6 to Feb. 6, members can also visit http://www.holycross.com/rates to make comments that the Board will review before making their final decision on Feb. 18.