At Meeker Energy, we work hard to plan ahead and to keep you informed. When we see changes coming that will impact our members, we believe in communicating early and openly.
Recently, we were notified by one of our wholesale power suppliers, Basin Electric, that a rate increase is likely coming. While we are still in the early stages of discussion and working hard to reduce the impact, we know enough to say this: a rate adjustment will likely take effect on January 1, 2026.
I know that’s not the kind of news anyone wants to hear. But as your cooperative, we feel the importance to explain what’s happening, what’s driving it, and what we’re doing to manage the impact because you’re not just customers, you are member-owners.
Over the past several years, we’ve shared that electricity prices are projected to rise across the utility industry. That projection is now becoming reality. Like most electric cooperatives, Meeker Energy does not generate its own power, we purchase it from wholesale generation and transmission (G&T) providers. When those providers face rising costs, those increases are passed along to us, and ultimately to you as a member.
While the specific numbers for our 2026 rate adjustment are still being finalized, it’s important to focus on why this shift is occurring. The answer lies in large-scale industry changes that are impacting electric utilities across the country:
Steady Load Growth: As homes, businesses, and communities increase their reliance on electricity, demand continues to grow. This includes the adoption of electric vehicles (EVs), and new technologies like artificial intelligence (AI). Agricultural operations are also becoming more electrified, and even everyday conveniences like home charging stations and smart appliances are adding to the overall load. To meet this growing demand, our wholesale providers must invest in new generation capacity.
New Generation & Transmission Projects: To support growing electricity demand, our wholesale providers are investing in new power plants, including natural gas facilities for on-demand generation. In addition, new high-voltage transmission lines are needed to carry electricity from where it’s produced to where it’s used. These large-scale infrastructure projects are complex, take years to permit and construct, and require billions of dollars in capital.
Aging Infrastructure: Much of the grid infrastructure in the U.S. was built decades ago. Aging substations, transformers, and transmission lines are nearing the end of their operational life. Replacing and upgrading these critical components is necessary to avoid failures, maintain system safety, and ensure reliable delivery of power in all conditions.
Reliability & Reserve Requirements: Grid reliability is now under greater scrutiny than ever before, especially following high-profile outages caused by severe weather and unexpected system strain. Utilities are now required to maintain higher reserve margins, a buffer of available generation capacity above projected demand. This helps prevent blackouts during peak usage or emergencies but requires significant investment in additional power supply, whether through market purchases or new construction.
Stricter Financial Benchmarks: In today’s lending environment, strong credit ratings are essential for power providers to access financing at competitive interest rates. To maintain those ratings, providers must meet higher margin and cash flow requirements, which means keeping adequate revenue above expenses. This financial stability helps ensure they can fund necessary upgrades and projects without dramatically increasing borrowing costs, which in turn helps keep long-term energy prices more stable.
These challenges are not unique to Meeker Energy, they’re national in scale. But they will have local impact and we take that seriously.
We’re currently working with Basin Electric and other partners to phase in any increases and avoid large, immediate jumps in bills. We’re always looking internally to reduce costs and identify operational savings wherever possible.
You’ll hear more from us as the final rates are confirmed. We’ll share details through the newsletter, bill inserts, and our website. We’re also available anytime by phone or in person if you have questions or concerns.
For members who want help managing monthly bills, we encourage you to explore options like SmartHub usage tracking, energy management programs which offer a lower electric rate for qualified loads and energy efficiency rebates for homes, farms and businesses, all designed to give you more control over your energy use and costs. Thank you for your continued trust.