Balancing Costs of Service
Electricity is essential for nearly every aspect of daily life—so much so that we rarely think about how it’s produced and delivered to our homes. Behind the scenes, a network of experts is working daily to anticipate how much electricity you need before you use it.
We’re all connected to the electric grid, so ensuring the right amount of electricity for everyone involves a complex process of forecasting energy demand, planning for capacity, and securing enough power supply to meet every member’s needs.
Electricity supply changes throughout the day as demand fluctuates based on consumers’ needs. Demand increases in the morning, evening, and with extreme weather conditions. At United Electric, we plan to ensure the right amount of electricity is available at the right time.
First, electricity is generated at power plants using either traditional sources—such as coal, natural gas, and nuclear—or renewable sources, such as hydropower. Generated power is then moved across transmission systems before it is delivered to customers using a distribution system.
This process of electricity generation, transmission, and distribution has experienced significant cost increases over the past several years. The cost of poles, conductors, transformers, regulators, and other equipment necessary to keep the system working effectively and efficiently has also increased.
At United Electric, we work closely with Bonneville Power Administration, our wholesale power partner, to secure electricity for our communities primarily using clean and reliable hydropower. United Electric also analyzes other resources, such as market purchases, natural gas, solar, nuclear and wind, and continues to explore options to ensure reliable power at a competitive cost.
As a not-for-profit, member-owned cooperative, employees and the board of directors strive to maintain costs while still providing the reliable, quality service you need and expect. United Electric uses cost analysis models and insight from third-party consultants to evaluate the cost to serve our members while keeping rates as low as possible. Due to continued increased demands for power throughout our service area and increased costs of supplying energy to our members, United Electric must move forward with a rate adjustment in 2026. Preliminary analysis indicates rates will need to increase by about 7% to 8.5%. Increases to each customer class may vary depending on the cost to serve the respective class, and the timing of the rate adjustments will be announced soon.
As the energy sector rapidly changes, all members need to understand the basics of electricity supply and demand. Electricity use in the United States is expected to rise to record highs this year and next, with demand projected to at least double by 2050.
United Electric is committed to providing affordable, reliable energy to the members we serve. That’s why we are preparing now for increased demand and other challenges that could affect our electricity supply.
We are grateful to our members and the communities we serve. We look forward to the challenges and opportunities the future holds for electric utilities. From all of us at United Electric, we wish you a happy New Year.
Sincerely,
General Manager Michael Darrington