By Ryan Mueller
General Manager
I had one of those parenting moments recently where I opened my mouth and suddenly heard my parents come out. I was at the store with my 10-year-old son when he spotted a pack of baseball cards that he just had to have and proclaimed very confidently, “Dad, that’s such a good deal!”
I looked at the price and said, “Of course it is. Everything is a good deal when it’s not your money.”
Then, just to really prove I am getting older, I added, “When I was your age, baseball cards cost about half that much.”
The second I said it, I realized I had officially become my dad.
That little conversation stuck with me, because everything really comes down to value. We all notice when things cost more, especially when we start comparing today’s prices to what they were 10 or 20 years ago. But the bigger question is whether you are still getting something worthwhile for what you are paying, and that is something we think about a lot at Central Electric as we look ahead to rate increases in 2027.
If you joined us at our Annual Meeting, you heard that we expect rates will likely need to increase again in 2027. We do not know yet what those rates will look like because we have not received finalized numbers from our wholesale power suppliers. We believe in being upfront with you as early as we can. Central Electric is owned and governed by you, our members. Every board member is also a member and pays the same rates as the rest of our membership.
That is also why the comment I made to my son about everything being a good deal when it is not your money stuck with me. At Central Electric, it is our members’ money. Every decision we make about rates, equipment, projects, or investments ultimately affects the people who own this cooperative, and we do not take that lightly.
That means watching the costs we can control, finding efficiencies, and making smart decisions about where and when we invest in the system.
Some of the numbers behind those rising costs are hard to ignore. Information recently shared at an NRECA regional meeting showed that electric utility equipment costs have increased about 101% since 2019. Transformers are up roughly 93%, overhead conductor is up about 72%, underground conductor is up about 74%, and some categories have increased even more.
You do not have to be in the electric business to understand what that means. It simply costs a lot more today to build and maintain our electric system than it did a few years ago.
At the same time, demand for electricity continues to grow. We need to make sure the system can keep up with that growth so electricity is there when you need it. Whether you are heating your home, drying grain, running a shop, watering livestock, or just making supper, you expect the power to be available.
One change we have already made is the new demand charge implemented in 2026. Using a lot of electricity at one time creates higher costs for the cooperative. The demand charge helps match those costs more closely with the members creating them instead of spreading them across everyone. It also gives members more control because spreading out larger electric loads can help lower peak demand and, over time, help us manage costs for the entire cooperative.
Members also have other ways to help manage their bills. Taking part in load management programs, watching when larger electric loads are running and making use of energy-efficiency programs can all help.
We will keep working to get the most out of the equipment and infrastructure our members have already paid for. But we still must replace poles, transformers, wire, trucks, and other equipment, maintain our system, and make sure enough electricity is available when our members need it.
I still think those baseball cards were overpriced, and my son still thinks they were a bargain. It’s a good reminder that everybody looks at cost and value a little differently. At Central, we keep that in mind as we make decisions to keep costs as fair and reasonable as we can, and make sure the reliability and service behind your electric bill continue to be something you can count on.
As for the baseball cards, next time I think I will just buy the pack and keep quiet before I accidentally turn into my parents again.