As I wrote last month, Midwest’s rates went up 9.5% on January 1st. We realize that is a very large increase all at once, but we needed to do that to cover the increase in our wholesale cost of power. Tri-State Generation and Transmission – Midwest’s primary wholesale power provider – increased their rate 7.5% for 2026. Some of Tri-State’s rate increase was driven by a rate increase from Basin Electric, who helps provide power to Tri-State’s members in Nebraska. Basin’s rate increased 10%, which is a cost increase to Tri-State. Tri-State also suspended paying back capital credits, which is a reduction in revenue that Midwest has to cover with a rate increase of approximately 1%. And the last 1% of our rate increase is due to local cost increases (materials and labor).
For most of our accounts, that rate increase was split between the Facility Charge and the energy (kilowatt-hour) rates. With our wholesale cost of power going up, it makes sense to increase the cost of energy that our members pay. The Facility Charge covers all other aspects of operations at Midwest. The material that we need to maintain our reliable service and build new line means that we are constantly purchasing poles, transformers, wire and other associated components to keep the system operating as it should. Those costs exist regardless of how much energy an individual account uses – you want the power to be there when you need it, even if you don’t need it all the time. I often use the example of a storm breaking poles or tearing down line. When that happens, our guys get out there and make the necessary repairs to get everyone’s power back on. We don’t send out bills to anyone for doing that. That’s what the Facility Charge is there to do.
Because of the differences in how accounts use electricity, individual accounts may see a slightly different rate increase. The increase in Facility Charge will be felt more by low-usage accounts while the increase in energy charge may be seen more by high-usage accounts. Because of those variables, your account may vary somewhat from the overall 9.5% increase. All our rates can be seen at www.MidwestECC.com/Rates.
What can Midwest do for you?
Midwest has scholarships available to graduating seniors through our power suppliers Tri-State Generation and Transmission and Basin Electric. See information in this newsletter or our website for details. Midwest also has a scholarship available for a student who is interested in attending power line school to prepare to be a lineman. Please contact our office for more information.
Jayson Bishop
*Midwest Electric is an equal opportunity provider and employer.*