Central Electric, like many utilities, is facing rising costs to purchase and deliver electricity. Our power suppliers (East River Electric, Basin Electric and Western Area Power Administration) are also dealing with higher costs to produce and move power across the grid.
A cost-of-service study was conducted to determine the appropriate rate structure. It is estimated that increases to wholesale power rates and operational costs will add $3.1 million to Central Electric’s expenses in 2026. This will result in rate adjustments across all rate classes effective Jan. 1, 2026.
Specific rate policies can be viewed at the bottom of this webpage.
Why Are Rates Changing?
- Inflation and supply chain challenges have made everything from transformers to poles more expensive.
- Existing members are using more electricity across the state and region. This requires Basin Electric to build more generation and transmission assets, which have much higher costs to build and operate today as compared to existing resources.
- Central Electric and its power suppliers are investing in reliability through the replacement of aging power lines and equipment.
Why Did the Facility Charge Go Up?
- With the cost to provide electric service increasing, Central Electric must collect additional revenue through the facility charge.
- The facility charge supports the cooperative’s fixed expenses to provide electric service. This includes costs to maintain power lines, transformers and electrical equipment.
- No matter how much electricity a member uses, there are fixed costs to provide electric service.
What is the Demand Charge for General Service Members?
A demand charge of $1 to $2 per KW has been added to general service rates. This charge is based on the highest amount of electricity a member uses during any 15-minute period throughout the month. Members who require more capacity will contribute more through the demand charge.
- Using a lot of electric equipment at once = higher demand
- Spreading out the use of electric equipment = lower demand
The cost-of-service study determined that a demand charge is the fairest way for Central Electric to recover infrastructure costs for members who require greater capacity. Download the SmartHub app to monitor energy usage. To read more about demand, visit www.centralec.coop/demand.
What Is the Co-op Doing to Control Costs?
- Central Electric is working collaboratively with electric co-ops across the region to achieve the lowest cost options for generating and delivering power to our members.
- Central Electric is operating efficiently, managing expenses responsibly and taking advantage of partnerships with neighboring co-ops, suppliers and contractors to minimize costs.
What Can Members Do?
- Utilize the SmartHub app to monitor energy usage.
- Manage how you use appliances and electric equipment to minimize the monthly demand charge.
- Ask about energy efficiency rebates, load management and budget billing options to help manage monthly costs.
The table below shows monthly rate comparisons from 2025 to 2026. Adjustments have been made to the facility charge and energy rates. A demand charge of $1 to $2 per KW has been added to general service rates. Rate adjustments across all rate classes take effect on Jan. 1, 2026.
Most members are subject to the Residential Single-Phase Policy 800 Rate.
