United Electric Members,
In recent years, United Electric has experienced increasing costs of doing business as an electric cooperative requiring an increase in member rates. The most significant impact has been rising costs of wholesale energy and transmission. In February 2026, United Electric’s rates will increase overall by 7.50%. For residential customers the rate impact will be an increase of 6.93%. A residential customer using approximately 1,500 kWh of energy per month will experience an increase of $8.91 per month. United Electric’s updated rates are available on the cooperative’s website.
This necessary increase is based on a comprehensive cost-of-service study performed in 2025 by a consulting firm with expertise in determining utility cost and allocation. The 2025 study is used to validate the amount of energy sales required to cover United Electric’s not-for-profit expenses.
Despite an economic environment of rising costs, United Electric makes every effort to keep energy affordable to its members. Increases to controllable expenses have been held to a minimum, and some expenses have been held constant due to effective planning and efficient delivery of service by United’s committed employees.
However, the most significant impact on United Electric is the cost of purchased power. This expense accounts for approximately 65% of the total cost of providing power to our members.
These power purchases primarily consist of the low cost associated with northwest hydropower generation. As the United Electric system grows, a larger portion consists of electric prices that are a function of the market. In 2026, the wholesale rate for this portion of United Electric’s purchased power has increased to more than $0.07/kWh.
As a not-for-profit, member-owned cooperative, United Electric strives every day to hold down costs while providing the reliable, quality service our members expect. Rate increases are never taken lightly and only implemented when necessary. United Electric is committed to providing its members with energy that is safe and reliable, and priced among the lowest in the state and nation.
Rate Increase Q & A
The change will take effect February 1, 2026, and will be reflected on your March 1, 2026, statement.
The average rate increase in 2026 is 7.50 percent. For a household using 1,500 kWh, that would mean an additional $8.91 per month.
Rates are available on United Electric’s website at www.uec.coop.