The Need to Strengthen Our Power Supply

At Union County Electric’s 2025 Annual Meeting, I informed the crowd that there was a significant increase in our wholesale power costs anticipated in 2026 and 2027. For those who attended our District Meetings in the Spring of 2025, we discussed in depth the various aspects causing upward pressure on rates.

In late July, Basin Electric Power Cooperation, our generation provider, held a meeting with all Basin members. This included Class C members (distribution cooperatives) and Class A members (transmission cooperatives). The group gathered for a conversation mostly on the proposed increasing rates. Basin members are looking at double-digit rate increases over the next two years and provided feedback to the Basin team on how best to implement the increases and to help us minimize the impact on our members. To Basin’s credit, they took much of the feedback that was received and adjusted their plans accordingly.

This isn’t a new challenge that Basin members have faced. In the 1980’s, cooperatives saw double digit increases mostly due to the increased cost of coal fired generation needed for growth. At that time Basin’s balance sheet doubled. From 2005 through 2010 electric cooperatives saw large increases, mostly due to large capital investments that were needed. Today Basin is looking at approximately $12 billion dollars over the next ten years in capital investments for new generation and transmission. As for the latest estimates for capital investments, the large or mega loads that we all hear about in the news for data centers are not part of Basin’s current load projections. These loads are not the driving force for the investments needed.

Electric generation has been hampered for decades by federal regulation and permitting. Today, most gas fired peaking plants are being operated like base load generators causing reduced lifespans and increased maintenance costs. Basin Electric built one of the last coal fired generation plants in America. It is one of the most efficient and cost-effective generating units in our fleet, while having all the latest and most advanced technology to remove harmful byproducts. Due to the ever-changing environmental regulatory landscape, building another coal fired plant is unlikely. While Basin has made investments in renewable energy, the current need is for firm and always available energy generation. This makes natural gas generation plants the best option available.

This isn’t just a Basin Electric problem but a national issue for all levels of electric consumers. Planning and making improvements to the electric grid has never stopped, but it is getting outpaced by demand throughout the nation both in urban and rural areas. An increase to your power bill is coming; how we implement the increase is the question.

It is your local electric cooperative’s duty to deliver safe power and keep electricity reliable 24/7. To put a very complex issue in simple terms, any excess power on the grid is getting consumed and demand continues to increase. To meet the goal of providing safe and reliable power, we need more generation and transmission assets. Capital improvement needs to be built and paid for if we want to live in a safe environment and to keep our economy growing.

By the time this article lands in your mailbox, we will have multiple plans developed to present to the Union County Electric Cooperative Board of Directors at our September board meeting. The Board will consider the best way to meet the Cooperatives’ financial requirements while striving to minimize the rate impact on our members.

Until next month, stay safe and God bless.

Quote of the month: “Trust your own instinct. Your mistakes might as well be your own, instead of someone else's” - Billy Wilder (Film Producer / Director / Writer)