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CEO Column: Trico Files Rate Proposal


CEO Column: Trico has filed a Rate Proposal with the ACC

November 1, 2024

Trico’s mission is to make a difference in the communities we serve by providing our Members cost-effective and sustainable energy solutions. As a non-profit cooperative, “cost-effective” is not just a phrase, it is a commitment we make to our Members. We do our best to control the costs that can be controlled and manage the costs that cannot. 

Over the last several years we have all experienced increased prices on everything from gas, to groceries, to housing. At Trico, we have seen similar cost increases in the equipment and materials we use to provide reliable energy. For example, since 2020 the cost of transformers and regulators has more than doubled, while wires and cable have gone up 7 percent. 

Trico has also been expanding its portfolio of generation resources with a combination of traditional and renewable resources, power purchase agreements, and even Member-owned distributed resources. It is vital for Trico to invest in its grid to maintain reliable service, purchase adequate power generation and storage capacity to meet system needs, and recruit and retain high-achieving employees with a commitment to serving Trico Members. All of these efforts produce value for Members and they come with costs.

In October, Trico filed a Rate Proposal Application with the Arizona Corporation Commission (ACC). This is the method for utilities (including cooperatives) to change their rates in the State of Arizona. Trico’s last Rate Proposal was filed about nine years ago with the ACC, in 2015 (based on 2014 costs). That rate change was approved by the ACC in 2017. We have worked hard to control costs (and we will continue to do so), but it is now necessary and important for Trico to increase its rates.  

Our current Rate Proposal is based on 2023 costs. As you might expect, costs have changed over the last nine years. To prepare for this Rate Proposal, we worked to forecast projected growth and costs, and the investments we would need to provide reliable service. We then completed a Cost-of-Service Study (Study) to determine what revenue was needed to support Trico’s operations. The Study is designed to identify what we need to recover in rates to cover our costs and produce a margin necessary for healthy continued operations. 

Below is a summary of our Rate Proposal and the impact it will have. Please take a few minutes to read this article and check our website for more information. If you have any questions, please reach out to us.

Trico works hard to balance reliability, planning for the future, and excellent service with cost. As a non-profit cooperative, you (our Members) are the priority, and we will always be focused on providing you great value.

We will continue to keep you informed throughout the Rate Proposal process. Future articles in the Livewire will include updates, and you can visit Trico’s social media and website (www.trico.coop) for additional updates. We thank you for your support, and we look forward to continuing to serve you with cost-effective, sustainable, and reliable energy solutions.

Thank you for being a valued Trico Member.

View more Rate Proposal Information here.


Frequently Asked Questions

When will the rate changes go into effect?

The changes will not go into effect until approved by the ACC. We expect this will be in late 2025 or early 2026.

How will Trico’s proposed rates impact residential Members?

Residential Member rates will increase by 7.25%. This includes the change to the Customer Charge and surcharges described below. For the average Residential Member, this will mean an increase of around $10 per month. 

We are also proposing that the Demand Side Management (DSM) and Renewable Energy Standard Tariff (REST) surcharges on your existing bills be eliminated and that costs of those programs be included in base rates. We made this change because our Members have told us they find surcharges confusing. This means the effective increase to rates is actually closer to 6.25% rather than 7.25%. 

Is Trico increasing its monthly Customer Charge?

Yes, as proposed the residential Customer Charge will increase from $20 to $25. This charge helps to recover the fixed costs Trico must pay to maintain its system and cover the financing of its system.

How will commercial rates be affected?

Trico has a variety of commercial rates and the changes vary by class. We will be sharing more information on commercial rates in future articles, meetings with Members, and on our website. Any commercial Members interested in meeting with one of our Commercial Account Specialists can contact us at 520-744-2944 ext. 1311.

Is Trico proposing changes to its Rules, Regulations and Line Extension Policy (RRLEP)?

Yes, Trico is proposing changes to make the RRLEP easier to read and more accessible to Members and Trico employees.

Are there changes to the service charges?

Yes. Regular hours service calls will increase from $50 to $125. After hours Meter Crew calls will increase from $70 to $175. After hours Service Crew calls will increase from $175 to $250. Meter testing costs will increase from $35 to $50. The late payment charge will increase from 1.25% to 1.50% per month. The intent is to better capture the actual cost of these services and have the Members who use these services cover the costs.



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Trico Members Enjoy Appreciation Event


Members Enjoy Appreciation Event at Marana Pumpkin Patch

November 1, 2024

Thank you to everyone who attended Trico’s Member Appreciation Event on October 9, 2024 at the Marana Pumpkin Patch. Close to 2,400 Members attended.

Feedback from Members was very positive, and we loved having the chance to celebrate with you.

“That was a huge blast! Great way for families to get together and the kids went crazy with everything there was to do. Thank you for doing this, it was a super fun night,” Cindy Williams said.

In addition to admission to the pumpkin patch, there was a photo booth and giveaways, and Trico staff and Board Directors were on hand to answer Member questions. Lineworkers Bryan English, Martin Mares, Matt Ward and Joe Tsethlikai gave a demonstration on electrical safety.

“It was a great time and perfect venue! What made it the best was when we were heading home, our son (sometimes too cool for us being in middle school) said he had a great time. Thank you Trico,” Anastasia Hartmann said.

We hope you had as much fun as we did, and we look forward to seeing you at a future Trico membership event!

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Free Virtual Solar Workshop

Is solar right for you? Join Trico’s experts virtually as they answer your rooftop solar questions BEFORE you sign with a contractor. Registration link coming soon!

To ask any immediate solar related questions, email us at sunwatts@trico.coop or call us at 520-744-2944, ext. 1524.

 

CEO Column: Electricity Provides Powerful Value


Electricity provides powerful value

September 1, 2024

As a member-owned cooperative, Trico does everything in our power to ensure our costs stay reasonable and that electricity remains a great value for our Members. It’s not always easy, as there are several factors that impact the price of electricity—some within our control and many outside our control. We are always working hard to develop smart, innovative ways to control expenses and ensure we provide cost-effective service.

The cost of electricity can fluctuate due to supply and demand, required infrastructure investment, preparing the grid for the future, maintenance and operational expenses, and many other factors. Weather also contributes, affecting both demand and generation capabilities, with extreme conditions leading to heightened energy usage and disruptions. In my column this month I want to share some of the lesser-known ways that Trico works to keep your costs down.

One way Trico controls the cost of energy we provide is by selling excess energy and capacity from our resources to other utilities. There are times (especially in the summer) when we use all the energy and capacity in our resource portfolio. However, when usage on Trico’s system is lower and there is demand in other regions, we make sales to other utilities. As a non-profit, the proceeds of these sales go directly toward reducing costs to our Members.

Trico also works to “hedge” its fuel costs by making advance purchases when the market price for natural gas is down. By planning ahead and making smart buys at the right time, we lock in reasonable fuel prices. This reduces the risk that Trico will suffer from a spike in natural gas prices. We take the same approach to our diesel and vehicle fuel prices. We focus on these efforts because they provide real savings for our Members over the long-term.

Another way we work to provide value is by pursuing grants to offset the cost of needed projects. Hopefully you have read about our success with several awards. We have been fortunate to receive awards that include a low-interest, partially forgivable loan from the Powering Affordable Clean Energy program through the U.S. Department of Agriculture (USDA). This award will support the construction of four solar and battery projects that will provide needed energy and added resilience. We have also been awarded a grant through the Department of Energy’s Grid Resilience and Innovation Partnerships program for improved right-of-way maintenance and wildfire mitigation. These programs will save Trico Members millions of dollars overall, and we are working hard to earn other grants.

The energy needs of our community will continue to grow as more aspects of our lives are powered by electricity. Just consider the number of devices you charge every day from phones to tablets to smart devices. Now consider the increased number of electric vehicles you see on the road and the new devices you see at stores, schools and community events. The demand for electricity is expanding and Trico is dedicated to making sure our Members have cost-effective, sustainable energy solutions. Trico will always put our Members first and work each day to provide you with great value. Thank you for being a valued Trico Member.


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Washington Youth Tour Leaves Lasting Impact


Trico students experience unforgettable Washington Youth Tour

September 1, 2024

This year’s Washington Youth Tour provided an enriching experience for the three students that Trico sent as well as the chaperones. The tour left a lasting impact on all participants.

Gabrielle Mireles, who attends Mountain View High School, expressed her gratitude: “Words cannot express how forever grateful I am for this amazing opportunity! I have made amazing memories, met new friends, and learned so much. The impact Trico has made on me is immense.”

Devin Campbell, a student at Walden Grove High School, said “My favorite parts of the tour were meeting new people and forming friendships, talking to a staffer about national issues, and exploring D.C.’s museums. Interacting with various people, from museum workers to a Secret Service member, was fascinating and gave me a unique perspective on the city’s pace and history. The museums were incredibly informative, and I wished I had more time to explore them fully. This trip has sparked my interest in politics and advocacy, and I’m now considering an internship in D.C. to be more involved in the nation’s activities and continue learning. Plus, I’d love to use my library card to access even more resources!

“Thank you, Trico, for this incredible experience. Your dedication to the community brings great benefit!”

Alicia Lind, who will be a senior at Sahuarita High School, said the US Marine Corps Museum (USMC) and the sunset marine parade were her highlights of the tour “I encourage others to apply for the Youth Tour because meeting wonderful people and seeing these places in person is incredibly different from online. It’s one of my top three trips ever, and even the places I wasn’t excited for blew me away. I’m grateful I could go. I met so many people and learned so much. Each place was memorable, and even though we were tired and slept on the bus, it was the most fun, most engaging, unbelievable trip anyone could go on.”

Trico Inspector/Locator Andy Mendibles, one of the chaperones, reflected on the journey: “Washington Youth Tour is a great experience for students. Seeing the kids engaged with history and learning new and interesting things about their country was amazing. They also had a great meeting with their representative (Juan Ciscomani), who answered their questions about the state of the country. We had speakers who resonated with all of us, and I am grateful for the opportunity to be a chaperone and a part of the Washington Youth Tour.”

Trico Senior Distribution Designer Deidra Tulk, who was co-director of the tour, recounted the trip: “We visited many incredible places: Mount Vernon, the USMC, Arlington, the Pentagon, the 9/11 Memorial, Ford’s Theatre, the Capitol, many beautiful monuments and memorials, the White House, the International Spy Museum, a river cruise where we saw fireflies along the tidal basin, and congressional visits.

“The trip was amazing and exhausting. Despite the exhaustion, the experiences and camaraderie were worth it. There were tears at the Phoenix airport when we said goodbye. I am grateful Trico allowed me to be a part of the tour this year. I left with amazing memories, lasting friendships, and an even greater appreciation for electric co-ops for their commitment to our communities and our youth.”

The Washington Youth Tour has once again proven to be a remarkable opportunity for students to grow, learn, and engage with history and their peers. Trico is accepting applications for the 2025 Washington Youth Tour. Learn more at www.trico.coop. Deadline to apply is October 31, 2024. 

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Trico Member Appreciation Event Information


Trico Member Appreciation Event 2024

August 1, 2024

Trico’s Member Appreciation Event will be held on October 9, 2024 from 4-9 p.m. at the Marana Pumpkin Patch. Registration for tickets will be available on our website starting at 8 a.m. on Saturday, September 21, 2024.

Tickets are first come, first served, and we WILL sell out. Maximum of five tickets are available per Membership – please only take the number you need to allow other families to also enjoy the event.

Your ticket will include free admission, refreshments, and one orange pumpkin per Membership. While most activities are included, there are additional fees for the zipline, pumpkin canon, rock wall, and paintball.

We will share more information as the event gets closer! To be the first to hear updates, be sure to follow us on Facebook and Instagram, and make sure your email address is accurate in your SmartHub account.

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Trico Awards $35K to Local Nonprofits


Trico Awards $35,000 in grants to support local nonprofits

August 1, 2024

Trico has announced the recipients of its 2024 Spring POWER Grants, totaling $35,000, to five local organizations dedicated to improving the lives of residents in Pima County and surrounding areas. This initiative underscores Trico’s commitment to community support and development.

Sahuarita Food Bank & Community Resource Center will receive $10,000 to distribute emergency food to low-income residents of Pima County, including significant portions of the Trico service area. This grant will play a pivotal role in alleviating hunger and providing essential support to those in need.

Similarly, the Marana Food Bank & Community Resource Center will receive $10,000. The funds will aid in distributing healthy food to Marana families facing hunger, operating four days a week, and offering programs to foster self-sufficiency. This grant will significantly impact the lives of many struggling families.

The Marana Unified School District (MUSD) is set to receive $8,750 to equip 1,200 students with backpacks filled with school supplies for the upcoming school year. This initiative ensures students are prepared for their educational journey, easing the financial burden on families. Dr. Cindy Ruich, Director of Student and Family Support Services at MUSD, shared her appreciation: “It takes a village to support and educate the students in MUSD and we are so grateful and blessed you are a part of our village.”

The Mt. Lemmon Fire Fighters Foundation will receive $1,500 to modernize their rope rescue gear, enhancing the safety and efficiency of firefighters during rescue operations. This investment is crucial for the protection and well-being of both the firefighters and the community. “The support provided by Trico Electric Charitable Trust and its members exemplifies a commitment to the well-being of southern Arizona, and it is through contributions like these that we are able to maintain and improve our critical services.” Michael Cuestas, Captain of the Mount Lemmon Fire Fighter Foundation shared. “We are honored to be among the beneficiaries of the POWER Grants program initiative,” he added.

Youth On Their Own (YOTO) will be awarded $4,750 to support students experiencing homelessness in Tucson/Pima County. The funds will provide basic needs, financial assistance, guidance, and support services with the goal of high school graduation. CEO of YOTO, Elizabeth Slater, thanks Trico for supporting Southern Arizona’s students experiencing housing insecurity. “This grant award will provide direct financial and basic needs support to YOTO youth, helping them remain focused on their goal of high school graduation. Thank you.”

Through these grants, Trico continues to demonstrate its dedication to empowering and uplifting local communities. The support provided will enable these organizations to make a substantial and lasting impact on the lives of many individuals and families. You can help by rounding up your bill through Trico’s Operation Round Up program. Learn more at www.trico.coop/operation-round-up.

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CEO Column: New BESS System Saves Members Money


CEO Column: Trico’s New BESS Saves Members Money

August 1, 2024

On July 2, 2024, Trico hosted a ribbon-cutting ceremony to celebrate the completion of the Sahuarita Battery Energy Storage System (BESS), a key part of our ongoing efforts to provide our Members with cost-effective and sustainable energy solutions.

The event marked a significant milestone, supported by a $55.2 million award from the U.S. Department of Agriculture (USDA) under the Powering Affordable Clean Energy (PACE) program. Sierra Southwest Cooperatives Inc., which develops energy resources for Arizona’s nonprofit electric co-ops, received the award to support three battery storage facilities in Pima, Cochise and Mohave counties totaling 35 megawatts.

The new Sahuarita BESS, with a 10-megawatt peak capacity and a 40-megawatt-hour battery array, will store solar energy produced during the day and release it during peak demand in the evening. This project allows us to provide more reliable power, enhances our resilience, and saves our Members money. The system can power approximately 3,000 households for four hours.

Trico is proud to be among the top five electric cooperatives in the nation for installed solar and storage capacity. With a goal of reducing our carbon emissions by 50% by 2032, projects like the Sahuarita BESS are crucial steps towards achieving this target. Our cooperative’s commitment to clean energy was further reinforced by the presence of local leaders and stakeholders, including Sahuarita Mayor Tom Murphy, who praised the project as a model for other communities to follow.

As a non-profit cooperative, we do everything we can to provide our Members with great value at a reasonable cost. This project is an example of how Trico goes the extra mile to produce savings for our Members. When it comes to power supply, we do this by pursuing grants, managing expenses, developing innovative ways to save on power supply costs, and working with partners who understand what it means to be a co-op. Our new Sahuarita BESS will provide cost benefits not just for the community where it is located, but for all Members and for years to come.


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Outage Restoration Process


What really happens when the lights go out

July 1, 2024

Ever wondered how power gets restored after an outage? Let’s take a closer look at what happens behind the scenes:

  1. Teamwork: From frontline representatives to field operatives, everyone works together to get the power restored as quickly and safely as possible.
  2. Assessment: Each time the power goes out, crews take a good look to see what’s broken and figure out the best way to fix it.
  3. Safety First: Safety is always the top priority. Crews make sure to watch out for anything that could cause harm.
  4. Understanding Flickering Lights: Flickering lights indicate that our equipment is working to prevent bigger problems.
  5. Being Prepared: If you rely on power for life support purposes, you must have a backup plan in case the power stays out longer than expected. We encourage Members to complete our Life-Sustaining Equipment Form, which is available on our website at trico.coop/outages.
  6. Working Together: Our portion of the power grid is connected to other electric utilities, so we maintain positive relationships with other power providers to get things back to normal as quickly as possible.

Restoring power is a group effort aimed at your safety and keeping your electricity running smoothly. We’re dedicated to doing our best for you. So, when the lights go out, rest assured we’re diligently working to restore your power and provide you with uninterrupted service.


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Summer Energy Saving Tips 2024


Stay cool this summer while saving energy and money

July 1, 2024

Have you noticed that your air conditioner seems to be working harder? Though we don’t suffer the high humidity of the southeastern states, anything above 32% can certainly affect our comfort level.

Here are some tips to help you beat the heat:

  • Use ceiling fans or oscillating fans. They help evaporate moisture from your skin, making you feel cooler. In the summer, operate ceiling fans in a counterclockwise direction. You should turn fans off in rooms that are not in use.
  • In addition to raising your thermostat to 78 degrees, make sure your air conditioner is well maintained and functioning efficiently. That means replacing filters on schedule.
  • Take shorter showers to save on water heating costs. Even if your water is heated by gas, that’s still a good idea.
  • Run large appliances such as the washer, dryer and dishwasher after 8 p.m. or early in the morning. Running these appliances at cooler hours saves the air conditioner from working as hard.
  • Here’s an easy way to lighten the load on your clothes dryer. Before you dry a load of damp clothing, toss in a clean, dry towel. The towel will absorb excess water, shortening the drying time. If your dryer does not include an autosense feature to determine drying time, remember to reduce the timer to about half of what you normally would. Remove the towel about 15 minutes after the cycle begins.
  • Plant shade trees. You may not see immediate energy benefits, but in a few years, you’ll be glad you did. You can get trees from Trico through our Operation Cool Shade program. Each year you can purchase up to three 5-gallon shade trees from Trico for $15 each. Five-gallon trees are not very big but give them a few years and they will provide shade. Trees for 2024 are sold out. Trees will be available again for purchase in January 2025.
  • Keep the window coverings closed during the day to block the sun’s heat.
  • Select energy-efficient products when you buy new cooling equipment. Your contractor should be able to give you energy fact sheets for different types, models, and designs to help you compare energy usage. See the efficiency standards for information on minimum ratings and look for the ENERGY STAR when purchasing new products.
  • Avoid setting your thermostat at a colder setting than normal when you turn on your air conditioner. It will not cool your home any faster and could result in excessive cooling and, therefore, unnecessary expense.
  • Unplug appliances and electronics when not in use. Small appliances and electronics use energy even when not in use.
  • Smart plugs are inexpensive and offer convenient solutions for scheduling and controlling your favorite electronic devices. With smart plugs, you can easily manage your coffee maker, lighting, home office equipment, video game consoles and more. Smart plugs can help you manage devices through a smart phone app, your home assistant or voice control.

For more energy saving tips, visit www.trico.coop/sustainable-energy/home-energy-savings

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CEO Column: We Take Managing Costs Seriously


We take managing costs seriously

June 10, 2024

You have probably heard in the news that some of the large, investor-owned utilities in the state have been increasing rates on a double-digit basis. As a non-profit cooperative, we are dedicated to providing cost-effective and sustainable energy services to our Members. We develop our rates to be affordable by focusing on recovering costs instead of making profits. We also work hard to control our costs for the benefit of our Members. This month I want to share some information on what goes into our rates and how we strive to control costs.

There are three primary categories of costs in our business: power supply, operating, and fixed. Power supply is the cost to generate power and the cost to transmit power to our system (transmission costs). Operating costs include billing, outage response, preventative maintenance of our system, legal costs, employee training, headquarters maintenance, property and casualty insurance, wages and benefits, director expenses, regulatory expenses, etc. Fixed costs include interest on long-term debt and depreciation of our assets.

Regarding operating costs, Trico has lower operating costs per kilowatt hour (kWh) today than we did 10 years ago. Trico has kept operating costs per kWh sold essentially flat for the last 10 years whereas across Arizona and the country, they have consistently risen. Our power costs per kWh sold have been essentially flat over the past 10 years and are lower than they were 15 years ago.

Additionally, since the mid-1980’s (almost 40 years ago) our rates have increased by about half a percent per year. In other words, our rates have gone up considerably less than the rate of inflation for the past 40 years, which means our Members are paying less today than they were in 1986 on an inflation adjusted basis.

We have accomplished this by always focusing on our Members and working to be efficient. Trico’s number of employees per Member ranks among the top 20% of U.S. electric cooperatives in terms of efficiency. We take pride in providing excellent service while controlling operating costs.

Like all companies, over the last several years, Trico has seen significant increases in the cost of materials, supplies, labor, fuel, power supply, and equipment. This is something we need to address as we want to maintain our financial strength and we don’t want to compromise the maintenance of our system. Reliable service is one of the ways we provide great value to our Members.

With this in mind, Trico is planning to file a rate proposal this year with the Arizona Corporation Commission (ACC) that will likely result in a modest upward adjustment in rates and will go into effect in late 2025 or 2026. Our last rate proposal was filed in 2015 and was approved by the ACC in 2017, so it will be about eight years between new rates.

We are currently working on a Cost-of-Service Study (Study) that will determine what will be included in our rate proposal. This Study is designed to identify what we need to recover in rates to cover our costs and produce a margin needed for healthy operations. As we complete the Study, we will share what you can expect on your bill. Our approach to this process will be guided by our mission of providing cost-effective and sustainable energy solutions to you, our Members. As always, thank you for being a valued Member of Trico Electric Cooperative.

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Summer Monsoon Season Preparation


We’re ready for summer monsoon season

June 10, 2024

With the summer storm season approaching, Trico is implementing extra procedures to minimize the impact of power outages on our Members. 

To help support our Members during outages and times of excessive heat, Trico is implementing a Community Care Team made up of employees to distribute water, ice, and other necessary items. The Community Care Team will respond in situations where outages are projected to last more than a few hours and affect numerous Members.

We encourage Members to be prepared in the event of a power outage by following these storm safety tips:

  • If you experience a power outage, check our outage map at trico.coop/outages for the latest updates. Sign up for outage notifications.
  • High winds may bring power lines down. If you encounter downed lines while driving, turn around. Lines may still be energized. Never drive near or over them.
  • Heavy storms and rainfall have the potential to create flash floods. If you encounter standing water while driving, turn around and find a safer route.
  • Make sure your cellphone and portable power banks are charged and ready to go.
  • Stay informed by following us on social media at facebook.com/TricoElectricAZ, instagram.com/TricoElectricAZ and twitter.com/TricoElectricAZ.

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