Over the past several years, we’ve all felt the strain of inflation, whether we’re at the coffee shop or the gas pump. Unfortunately, your electric cooperative is not immune to inflation either. The cost of energy continues to rise thanks to several different factors, from higher fuel prices to operate power plants down to the poles, wires and equipment we use to supply you with electricity each and every day.
We understand that dealing with increased costs in every area of your life is stressful, and as a not-for-profit electric utility, we are committed to only passing along cost increases when it’s absolutely necessary.
As we all navigate higher costs, we are here to help you better understand how inflation impacts electricity rates and offer programs to help you offset higher costs.
Wholesale Power Cost Increases
About half of the power we supply to our members comes from carbon-free nuclear. Our second largest source of power comes from natural gas plants.
While the price of natural gas has come down some in 2023, prices still remain about 25% more than 2020. With an annual power bill of more than $35 million, you can see the impact this increase has on your co-op.
Increased Equipment Costs
Another area impacted by inflation is the cost of equipment like wires and transformers. These types of equipment have also been harder to come by over the past few years due to supply chain issues, which have led to further price increases.
Prices have dramatically increased in the past two years. For example, a 15 kVA transformer that we paid $693 for in 2020, cost $1,258 in 2023 which is an 81.5% increase.
Much of our equipment has followed the same pattern. Our 350 underground wire was $1.99 per foot in 2020, $2.71 per foot in 2021 , $3.30 in 2022 and then $4.55 last year. Those are increases of 36%, 22% and 38% the last three years.
Even in this rising cost environment, our rates remain lower than national and state averages and we will continue to do everything in our power to help keep them as low as possible.