By Ken Schlimgen, General Manager
As we approach Christmas and the close of another year, I want to take a moment to express my sincere gratitude to you—our members—for your trust and support. Electric Cooperatives were founded on a simple but powerful idea: that when people come together, they can improve the quality of life in their communities. That idea continues to guide everything we do.
A key part of that promise is delivering reliable electricity. This past year, we made significant progress in strengthening our system, even as the cost of materials and system construction continues to rise.
In 2025, Basin Electric completed two major projects: a 32-mile transmission line and a 580-megawatt natural gas generation unit, with a combined cost of $895 million. They also began work on a 1,470-megawatt generation project scheduled for completion in 2030 with a budget of $3.9 billion.
Looking ahead, East River Electric’s 2026 budget for reliability-related projects is $162 million. These are essential investments to reinforce our transmission backbone, including replacing 109 miles of existing line, upgrading multiple substations and building 84 miles of new line.
Here at Central Electric, we plan to replace about 60 miles of line, upgrade 110 services, build 45 new services and complete maintenance across more than 4,600 miles of power lines. The 2026 distribution budget for these efforts is $7.6 million.
These upgrades not only enhance reliability today but also increase our capacity to meet the growing energy needs of our members and communities. And while the investments we make now come at a cost, we are reminded that earlier generations did the same for us. We continue to benefit every day from the infrastructure built by cooperative members in the mid-1900s.
As we enter a new year, we face both challenges and opportunities. Demand for electricity continues to rise. The systems that keep power reliable require ongoing upgrades. New regional energy policies require more generation and transmission to be built. Because of these investments, our wholesale power costs are going up. This means electric rates in 2026 will increase for Central Electric members, as they will for many consumers across the country.
When you consider the size and complexity of the electric system, the price tag can seem overwhelming. Yet, even with today’s costs, the average price of electricity delivered by Central Electric to farm and residential members is about 14.5 cents per kilowatt-hour. With the 2026 rate adjustment, I am estimating the average cost per kilowatt-hour to farm and residential members to be around 16 cents. That’s a substantial value for the 24/7 essential service that electricity provides.
I am confident in our future. The dedication of our employees, combined with the support of our members, positions us well to meet challenges head-on. Through it all, our cooperative commitment remains the same: to improve quality of life by delivering reliable electric energy—today and for generations to come.
I wish you and your families a Merry Christmas and a blessed new year. Until next month, stay safe!