Rate Increase unavoidable in 2026

By Brad Doll, General Manager

Because we’re a cooperative, one of Verendrye Electric’s most important philosophies is we increase rates only when absolutely necessary. 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. 

Unfortunately, factors beyond our control will require us to increase our rates sometime in early 2026. As you know we increased our rates in May by 7.4% on average. We don’t know yet how large the increase will be, but we wanted to let you know now that one is coming. 

We know that low-cost electricity helps everyone and that’s why we don’t take the decision to increase rates lightly. 

Upcoming rate increases are unavoidable for us and most utilities across the nation as inflation, interest rates and the need for grid improvements and new generation are causing costs to soar. 

About 90% of our power is produced by Basin Electric Power Cooperative (BEPC) and they are implementing their second significant rate increase in two years. Nearly 70% of our $53 million in expenses is for the electricity we purchase. Basin Electric is investing over $11 billion over the next 10 years in transmission and generation assets to ensure there is plenty of reliable electricity available. Combined with higher costs of materials, historically higher interest rates and higher demand for electricity, Basin needs to increase rates.

Basin is not alone in needing to increase its rates. Other cooperatives, Investor-owned and municipal utilities across the nation are seeing the need for significant rate increases in the near future. One North Dakota investor-owned utility is seeking a 19% increase in its rates. 

Central Power Electric Cooperative, which delivers power to Verendrye, is also going to increase its rates as well as the Western Area Power Administration for hydropower we purchase.

If you have any questions about your rates or anything else please contact us at 1-800-472-2141 or 852-0406. Thank you for being a Verendrye member.