By Ken Schlimgen, General Manager
Albert Einstein once said, “Life is like riding a bicycle. To keep your balance, you must keep moving.” It’s too bad that when I was learning how to ride a bike, I didn’t know Mr. Einstein. However, his wisdom applies to many things, including your electric cooperative. To keep our balance between reliability, affordability and future growth, we must keep moving forward.
Your cooperative faces many of the same challenges as other electric utilities across the country: meeting growing demand for electricity, replacing an aging electric system, and managing rising costs. To continue providing reliable service, we must anticipate and plan for what’s ahead.
In 2026, our wholesale power suppliers—Western Area Power Administration, Basin Electric Power Cooperative, and East River Electric Power Cooperative—will be increasing the price of the electricity we purchase by nearly 10%. Another similar increase is expected in 2027.
This year, your cooperative will spend about $14.5 million to purchase the power we deliver to 7,300 homes, farms, and businesses. In 2026, we expect that number to rise by roughly $1.7 million. While some of that increase comes from members using more electricity, most of it is simply due to higher wholesale power costs.
Several factors are driving these rising costs. Inflation and global supply challenges have increased the price of nearly everything needed to produce and deliver electricity, from generators and substations to the poles and wires along your driveway. Meanwhile, demand for electricity continues to grow across the region. To ensure a reliable power supply, especially during severe weather, new generation facilities must be built soon, and the cost of that new generation is significantly higher than our existing resources.
Like you, Central Electric is also facing higher costs for materials, labor, insurance and contracted services. We understand the impact that rising costs can have on household budgets, which is why we are taking a careful, deliberate approach to any rate adjustment.
Right now, we are completing a detailed cost-of-service study and reviewing our 2026 budget to determine exactly what rate adjustments will be necessary. We will have the results ready for board consideration in December. Our goal is to minimize the impact of any rate increase while ensuring that rates remain fair and reflect the true cost of providing electric service to each member class.
We encourage you to begin preparing for changes to your electric rates in 2026. Please know that your cooperative remains committed to operating efficiently, managing costs responsibly and providing safe, reliable electricity at the lowest possible cost.
As Einstein reminded us, balance comes through motion. Together, we’ll keep moving forward to maintain the balance between reliability, affordability and progress.
Until next month, stay safe!