CREC understands that rate increases can be concerning, and we want to be transparent with our members about the reasons behind this adjustment. This FAQ addresses common questions about CREC’s rate adjustment (2.36%) that will become effective on April 1, 2026.
Rate adjustments are necessary to maintain the reliable electric service our members depend on. We work hard to keep costs down, but several factors necessitate these adjustments to ensure we can continue providing safe, reliable, and affordable electricity.
To be very clear -- this rate adjustment is not tied to any potential new industrial developments, such as data centers. This increase would happen regardless of whether or not the cooperative serves a data center.
It’s important to understand that the cost of our power supply equates to nearly 70% of CREC’s total expenses related to the delivery of reliable and safe electricity to our members.
The primary driver is increased costs passed on to us from our power generation and transmission partners, Associated Electric Cooperative, Inc. (AECI) and Central Electric Power Cooperative (CEPC). These increases are primarily due to several factors:
· Continued Increases in Operation Costs: Rising costs for fuel transportation and essential plant maintenance continue to impact our suppliers. These costs are also passed on to their distribution cooperatives, including CREC.
· New “peaking” natural gas plants: AECI and CEPC are building these plants and expanding the infrastructure required to deliver electricity to cooperatives like CREC, to help with meeting the continuing rising regional demand for power.
Your electric bill will reflect the adjusted rates. The specific impact will depend on your individual energy consumption.
No. As a not-for-profit electric cooperative, we are owned by the members we serve. These rate adjustments are not about generating profit; they are about covering the actual costs of providing reliable power. Any excess margins, after covering operating costs and necessary investments, are returned to our members as capital credits.
At the end of each year, any excess margins are returned to our members as capital credits. The amount of each member's refund is based on a formula determined by the quantity and cost of kilowatt-hours (kWhs) purchased annually. Members receive either a capital credit check, or it’s posted as a bill credit. This is a unique benefit of being a cooperative member.
We are committed to incorporating renewable energy sources into our power mix and supporting the development of cost-effective and reliable renewable technologies. However, some renewables, like solar and wind, are intermittent. Currently, baseload power sources like natural gas are essential for ensuring a consistent and reliable power supply, especially when renewable generation is low. We maintain a balanced energy portfolio to meet our members’ needs 24/7, 365 days a year.
We offer various programs and resources to help members improve energy efficiency. Please contact us to learn more about these programs and how we can help you manage your energy costs.
A: We are committed to transparency and member communication. We encourage you to contact us with any questions or concerns you may have. We are dedicated to working with our members.