Rate Increase March 1

Rate increase coming March 1
By Brad Doll, Manager

Starting on March 1 Verendrye members are going to see an increase of 9.4% on average in their electric rates. The increase is because of rising wholesale power costs, inflation, increased borrowing costs and other factors that Verendrye cannot control. 

Back in November I wrote about the pending rate increase, but at that time we didn’t know exactly how much the increase would be since our budget was not finalized. We’ve been communicating the need for an increase for months through our Member Advisory Committee, Key Accounts meetings, North Dakota Living and through personal conversations with Verendrye members, community leaders and businesses. 

We knew we had to increase rates because Basin Electric Power Cooperative, announced a significant increase in their rates for the second year in a row. Their rate increase – around 10% - took place in January. About 90% of the power we sell is generated by Basin Electric.

Unfortunately, Basin has told us there may be another rate increase coming in 2027. We will keep you informed as we get more information.

Central Power Electric Cooperative, which delivers power to Verendrye, also increased their rates, as well as the Western Area Power Administration for hydropower we purchase.

Because we’re a cooperative, one of Verendrye Electric’s most important philosophies is we increase rates only when absolutely necessary. We are able to wait until March to increase our rates with the help of a revenue deferral account that will help us cover the shortfall.

Nearly 70% of our $53 million in annual expenses is for the electricity we purchase. Basin Electric is investing over $11 billion over the next 10 years to accommodate growth and make investments in reliability.

Combined with higher costs of materials, historically higher interest rates and higher demand for electricity, Basin needs to increase rates and we cannot absorb the increase. It is important to note that Basin is requiring data centers to pay for their own infrastructure to connect to the grid. Basin is doing this to ensure data centers are not driving rates up for existing members.
 

The rate increase will include a change in your kilowatt-hour rate, monthly facility charge and demand charges if applicable to your farm or business. Solar pasture leases and monthly fees for yard lights will also be increased. The increase will vary depending on which rate class you are in. Your new rate will be published on your February bill. 

We know that low-cost electricity helps everyone and that is why we don’t take the decision to increase rates lightly. The cooperative business model means we are a not-for-profit organization owned by you. Each member of the board of directors is a Verendrye member elected by you and they have no reason to increase rates more than what is needed.

If you have any questions, please call us at 800-472-2141, visit www.verendrye.com or stop by either of our Velva or Minot offices. 

Thank you for being a Verendrye member.

Sincerely,
Brad Doll, General Manager