I want to personally address upcoming changes in our rate structure. Price adjustments are decisions your cooperative leadership never takes lightly. We understand the burden any increase places on our members, especially right now when costs for nearly everything continue to rise.
Unfortunately, electric cooperatives are not immune to these same pressures. Inflation and rising costs across the electric industry are primary drivers behind the need for
this adjustment.
On the next page, you will see a graphic that illustrates the cost increases for the equipment on a typical electric distribution pole. Since 2017, the price of core materials such as wire, transformers, crossarms, anchors, and poles has risen dramatically, in some cases more than doubling. These are essential components required to safely deliver electricity to your home, and they must be installed, maintained, and eventually replaced regardless of how much power is used.
We have only had small rate adjustments each year, and we have made every effort to keep those adjustments as minimal as possible. Effective January 2026, the service charge that every member pays will increase by $3 per month. This change will be reflected in the bills you receive in February. Additionally, there will be a small increase in the energy portion of the bill.
What is the service charge?
The service charge is a flat monthly fee that funds the backbone of your electric service, regardless of how much power you use. The service charge reflects the cost of having electricity available to you at all times.
Even if you do not turn on your lights, your cooperative must still maintain the system, so power is available to you 24 hours a day, 365 days a year. The service charge helps pay for infrastructure essentials such as poles, wires, substations, transformers, and meters as well as ongoing maintenance including tree trimming, pole testing, repairs, and system upgrades to prevent outages.
Recovering these costs through fixed charges helps secure the financial stability of your cooperative. It is also the most fair and equitable way to recover expenses that exist regardless of how much electricity a member uses. These costs are tied directly to the infrastructure required to deliver electricity to all members, so they are shared across the membership.
Generation costs remain stable, but transmission costs have increased
While we have implemented a modest adjustment to the service charge, there is good news when it comes to power generation. Our ownership in Buckeye Power helps keep generation costs relatively stable compared to utilities that purchase electricity on the
open market.
However, a growing portion of the cost of electricity comes from transmission. Transmission costs reflect the expense of moving power over high-voltage lines across Ohio and the region before it reaches our local distribution system. Significant investments in new, high-capacity transmission lines across the state have improved reliability and allowed for growth in the state, but they have also increased costs for all electric utilities, including cooperatives.
These rising transmission costs are a substantial factor behind the need for this rate adjustment. For [selected_context:field_cooperative:entity:short_name] between 2020 and 2025, transmission demand costs increased by an average of 51%. These costs are passed on to the cooperative through its wholesale power bill and eventually passed on to our members.
Weather is a major factor in your bill
While we can forecast the cost of providing electric service with reasonable accuracy, one major factor that affects your monthly bill remains unpredictable: the weather. Hot summers and cold winters increase energy use, while more typical Ohio weather can result in lower bills even with the updated rate structure.
Our bottom line is looking out for you
We understand that no one likes to see their electric bill increase, and we are mindful of the real needs of our communities, from fixed-income households to farms and small businesses. That is why we continue to offer energy efficiency information through this magazine and our website, budget billing to smooth seasonal usage, and time-of-use rates so you have the ability to use less power during peak usage times when energy is most expensive.
[selected_context:field_cooperative:entity:short_name] is not a corporation chasing profits. We are a member-owned, not-for-profit cooperative, and we are committed to investing responsibly in the system that serves our communities today and into the future. Even with this adjustment, [selected_context:field_cooperative:entity:short_name] will remain among the most competitively priced electric utilities in Ohio.
Thank you for your understanding, your trust, and the opportunity to serve you.
Additional information regarding [selected_context:field_cooperative:entity:short_name]'s rates and the 2026 increase can be found at [selected_context:field_cooperative:entity:field_web_site_url].
