Preparing for changes in electricity rates
Mylo Einarson President & CEO

As president and CEO of Nodak Electric Cooperative, I value the opportunity to keep you informed about developments that may impact your service.  With this issue, I want to share an important update regarding our electricity rates.

Starting April 1, 2025, Minnkota Power Cooperative, our wholesale power provider, will implement an 8.3% increase in its rates. Wholesale power costs are a significant factor in our pricing structure, representing 85 cents of every dollar we collect from our members. This increase will inevitably affect the cost of electricity for all Nodak members. While we do not yet know the exact timing or magnitude of our necessary adjustments, we are taking proactive steps to determine the best course of action. To put this in perspective, the wholesale rate increase alone will cost Nodak nearly an additional $8 million annually. In addition, we, like every other utility, have experienced rising supply chain costs across all aspects of our operations, further compounding the financial challenges we will be facing.

A history of stability
It has been nearly eight years since our last rate adjustment on April 1,  2017. During this time, we have worked diligently to manage costs while maintaining the high level of reliability and safety you expect. Unfortunately, the rising cost of wholesale power and increases in our own distribution costs – which have recently outpaced historical trends – make a rate adjustment unavoidable.

Planning for the future
To ensure a fair and balanced approach, Nodak has engaged a consultant to conduct a comprehensive cost-of-service study. This study will analyze our current costs and help us determine the most equitable way to adjust rates. We expect the study to be completed in the coming months. Once finalized, we will share details on how and when changes will take effect. Our goal is to implement any necessary changes with careful consideration of their impact on you, our members. This study will also explore options to structure rates in a way that reflects the varying needs and energy usage patterns of our membership. By carefully analyzing the data, we aim to implement adjustments that are fair, transparent, and aligned with our commitment to provide the best value for your energy dollar.

What to expect
While specific rate changes are not yet determined, potential adjustments may involve modifications to the base service charge, energy usage rates or a combination of both. Our approach will prioritize fairness and align with our mission to provide low-cost energy without compromising reliability or safety. The timing and structure of these changes will be guided by the insights we gain from the cost-of-service study, ensuring that every decision is data-driven and member-focused.

Commitment to value
Despite these challenges, electricity purchased through Nodak Electric remains a tremendous value. Our rates continue to be among the lowest in the nation, thanks to the efforts we have made to control costs and operate efficiently. From investing in technology to streamlining operations to implementing energy-saving programs, we are steadfast in our mission to serve you responsibly.

Staying informed
e understand that changes in rates are concerning, and we are committed to transparency throughout this process. Look for further updates in future editions of Nodak Neighbor and on our website at nodakelectric.com. Thank you for your trust and support as we navigate these changes together. Nodak Electric remains dedicated to delivering the reliable, affordable energy you deserve, and we will continue to work tirelessly to minimize the impact of these adjustments on our members.