Recently REC members learned about the necessary rate adjustment approved by the Board of Trustees. The rate adjustment will be comprised of two components – a kilowatt hour charge and a service availability charge. Starting November 15, there will be a slight increase, of approximately two mills per kWh, for residential and small to medium commercial members. A mill is a tenth of a cent. Additionally, REC’s large commercial accounts will see an approximate six percent overall increase starting in January 2027 based off their energy and demand charges.

REC members currently pay $0.0875 per kWh, and after the new rate is implemented with the November usage, members will be paying $0.08868 per kWh. 

This slight increase to our kWh charge is needed to help cover the Cooperative’s rising costs of delivering electricity to the membership. 

A majority of REC’s operating costs are fixed. Whether the member uses one kWh per month or 1,000 kWhs, the same amount of infrastructure and materials are needed to provide electricity. Our service availably charge is necessary for REC to recover many of these costs. Starting in April 2027, residential and small to medium commercial members will have an increase in their service availably charge from $17 to $25 a month. 

During a recent revenue requirement study by the National Rural Utilities Cooperative Finance Corporation, it was determined these increases are necessary to help REC remain financially healthy while continuing to provide the safe and reliable service to our members. Over the past several years, growth to REC’s system has helped absorb rising costs and avoid increasing rates while many other electric cooperatives have had to raise rates. This will be REC’s first rate increase since 2018, despite the significant inflation and increase in cost of materials, equipment, labor, and other expenses we have experienced.

We have provided an excellent energy value to our members over an extended period of time. Our rates are among lowest in the state, and even with these increases we will remain one of lowest.

Every time REC’s Board of Trustees meet they are always thinking about how changes will impact our member-consumers. With this in mind, they know the value our members place on energy extends beyond just price. It is the right combination of price, quality of service, reliability and being a responsible partner in meeting the needs of our members today and in the future.

REC will continue to strive to keep rates as low as possible while continuing to provide reliable power.