In December of 2023, United Electric announced that increasing costs of doing business as an electric cooperative necessitated an increase in member rates. To do everything possible to continue providing affordable, reliable, and high-quality service to our member-owners, United Electric minimized the impact of the rate increase by implementing the required rates over two years. In January 2025, rates will increase by 5.67%. For an average household, that would mean an additional $8.00 per month.
This necessary increase is based on a comprehensive cost-of-service study performed in 2023 by a consulting firm with expertise in determining utility cost and allocation. The 2023 study was compared to another analysis by a separate and independent consultant that validated 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. This year, power purchases increased 15% from the previous year.
These power purchases primarily consist of the low cost associated with the northwest hydropower system, but as the United Electric system grows, a larger portion consists of electric prices that are a function of market prices. In 2020, the northwest regional peak power prices as reported by the Energy Information Administration averaged approximately $23.76/megawatt-hour. After reaching an average price in 2022 of about $92.81, current market-based prices are anticipated to be upward of three times higher than in 2020.
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 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.
Frequently asked questions
The average rate increase in 2025 is 5.67 percent. For an average household, that would mean an additional $8.00 per month.
The change will take effect January 1, 2025, and will be reflected on your February 1, 2025 statement.