Rate Increase Effective May 1
At Verendrye Electric Cooperative our cooperative business model allows us to focus on keeping rates low because we are a not-for-profit organization with the sole purpose of serving our members.
Unfortunately, we need to increase rates effective May 1 because of significant cost pressures. Rates will increase on average 7.4% but will vary by each service. Part of the rate increase includes increasing the yard light fee by $1 a month. Specific details about your rate will be provided on the bill you receive in April.
Besides a few small increases in the monthly facility fee and a small increase in our electric heating rate, we have not had a significant rate increase since 2016.
Most of the cost pressures come from Basin Electric Power Cooperative, which produces most of the power we purchase. Basin Electric increased their rates in January. Our bill for electricity is about 70% of our total costs.
Inflation is one of the key drivers of Basin’s rate increase, along with higher borrowing costs and the need to invest in the power grid. Central Power Electric Cooperative, which delivers power to Verendrye, also increased their rates, and so did the Western Area Power Administration for hydropower we purchase.
We are also facing cost pressures because of inflation and higher interest rates. For example, the cost of a 37.5 kVa transformer, which is widely used, has more than doubled since the pandemic.
Verendrye is not alone in having to implement a rate increase. Other cooperatives and all of the investor-owned utilities in North Dakota have recently increased their rates. We’ve utilized some of our revenue deferral funds to delay the rate increase until May. However, we cannot continue to absorb the cost increases.
Basin Electric has indicated there may be another rate increase in 2026, which could require us to raise our rates again. We are monitoring the situation closely and will keep the membership informed.
If you have any questions about this rate increase or anything else please contact us at 1-800-472-2141 or 852-0406. You can also read a series of articles attached to this post for more information about what drives electricity prices. Thank you for being a Verendrye member.
-Brad Doll, General Manager