Understanding the 2026 Rate Increase

Crow Wing Power is facing a rate increase from Basin Electric, our wholesale power provider, with a 10% increase planned for 2026 and another increase in 2027. These costs reflect Basin Electric’s investments in new generation and infrastructure, which help ensure electricity remains reliable and available for our members.

The rate increase also allows Crow Wing Power to focus on its own priorities, including ongoing investments in reliability and long-term planning. These investments include projects in the four-year construction work plan, technology upgrades, fleet maintenance and replacement, addressing aging infrastructure, and facility planning at our headquarters. By balancing these priorities with the wholesale power cost increases, the cooperative can continue providing safe, dependable service now and in the future.

The rate increase will go into effect on January 1, 2026. Members will see this change on their February bill for January's electric use.

You will see an increase in the base charge, which reflects Crow Wing Power’s cost of delivering electricity and maintaining equipment, regardless of how much power a member uses. Members will also notice an increase in the per kWh rate. Overall, residential members can expect an average increase of approximately 8.6% percent in their monthly electric bill.

To view your specific service charge, click here.

Several factors contribute to the need for a rate increase. Inflation affects day-to-day operations, and Crow Wing Power is investing in system improvements to maintain reliable service now and plan for the future. These investments include replacing and upgrading aging infrastructure through the four-year construction work plan, adding new infrastructure to support future needs, updating technology systems such as SCADA, maintaining and replacing fleet equipment, and enhancing our right-of-way program to reduce outages and improve reliability. Facility planning at our headquarters is also part of these responsible investments, ensuring the cooperative is prepared to meet the needs of members and employees.

Coupled with the rate increase we are facing from our wholesale power provider, these priorities allow Crow Wing Power to continue delivering safe, dependable electricity while managing costs responsibly for current and future members.

*SCADA is a centralized platform that monitors, controls, and automates our power grid operations to improve reliability, efficiency, and real-time decision-making.

Ultimately, the determination lies with the Board of Directors. The leadership team manages day-to-day operations, develops the budget, and evaluates rate classes, costs and efficiencies. The board sets the overall direction and approves the proposed budget, which may or may not include a rate increase.

Crow Wing Power contracted with Power Systems Engineering, an independent and experienced utility consulting firm, to complete a comprehensive Cost-of-Service study for the cooperative.

A Cost-of-Service study evaluates the true costs to deliver electricity to its members.  It analyzes the cooperative’s revenue requirements, financial forecasts, projected wholesale power costs, and overall operational needs. This process helps identify how much revenue is needed in the coming years and how those costs should be fairly allocated across different rate classes.

Crow Wing Power uses the results of this study to design rates that are equitable, transparent, and aligned with the actual cost of providing reliable service.

Crow Wing Power regularly reviews its financial health and operating costs to ensure the Cooperative remains strong and reliable. Our last rate adjustment was in April 2024, and before that, it was in 2018.

Throughout the year, the board receives updates on the Cooperative’s finances, including budget performance, cash levels, capital needs, and future reliability projects. Using this information, the board enters budget season with a clear understanding of the Cooperative’s needs and sets the rates for the following year. This process helps balance rates that are fair, equitable, and representative of the true cost of providing dependable service to all members.

Crow Wing Power rates are in line with cooperatives across the State of Minnesota.

This chart shows a comparison of Crow Wing Powers Base Charge and average monthly bill minus taxes and fees compared to other MN Cooperatives that are similar in size and location.

Yes. Similar to Basin Electric’s phased-in approach, Crow Wing Power anticipates that rates will need to be adjusted again in 2027. This helps cover rising wholesale power costs, ongoing investments in infrastructure and maintaining healthy cash levels to ensure the cooperative remains financially strong for current and future members.

Using a multi-year approach allows us to gradually address infrastructure needs that have grown over time while continuing to provide safe, reliable service without placing sudden, large increases on members.

In early 2025, the Board of Directors approved a new construction work plan developed in partnership with STAR Energy Services. The additional revenue will support several key reliability and infrastructure projects, including two new substations, a major three-phase cable replacement project, and the purchase of more than 3,000 transformers needed to meet current and future system demands.

As a not-for-profit Cooperative, Crow Wing Power consistently operates with slim margins and a focus on member value. Every dollar we collect is reinvested in providing safe and reliable electricity for our members.

To manage costs, staff and management have closely reviewed operations to find savings and efficiencies. We’ve reduced planned headquarters maintenance expenses by about $800,000, brought some previously contracted services in-house, and transitioned to a new health insurance plan that lowers overall costs for the Cooperative.

These steps help us control spending while continuing to invest in the reliability, safety, and service our members depend on every day.

Reliability and safety are at the core of everything we do. Even though we work to manage costs, we never compromise on maintaining safe and reliable electricity.

Crow Wing Power carefully prioritizes grid maintenance, right-of-way management, and equipment upgrades to prevent outages and keep our crews and members safe. We use technology and data to identify areas that need attention before issues arise, helping us operate more efficiently and avoid higher repair costs later.

Our approach is balanced, investing where it matters most to keep the lights on and our employees safe, while remaining responsible stewards of member dollars.

Nothing will affect the monthly process of how you pay your electric bill. If there are adjustments needed for budget billing, the billing department can help members with those adjustments.

*If you are experiencing financial hardship, call our Billing Department during business hours so we can review your options and direct you to agencies for help or assistance. 

Crow Wing Power, like other electric cooperatives and utility services, imposes a Base Charge that reflects the members’ share of fixed costs associated with materials and equipment installed and available for power. This ensures the continuous availability of essential services. If seasonally disconnected (less than 12 months), a reconnect fee plus the missed monthly service availability charges would be billed before reconnecting. Members save money by staying connected and incurring the monthly basic charge.

Crow Wing Power offers a wide range of programs and technologies to help members manage electricity use and save money. Our Member Service Department can assist members and businesses with energy-saving programs and rebates. We encourage members to visit our Energy Savings blog for easy energy-saving ideas.

The Billing Department offers multiple ways to help manage your power bill, including automatic payment options and budget billing.

Your electric bill is designed to show both what you use and what it costs to deliver reliable power to your home or business. The best way to understand your usage is through SmartHub, our online and mobile account management tool.

SmartHub allows you to:

• View daily and hourly energy use
• Compare usage over time or by season
• Set up alerts to track high usage days
• Access your billing history and make payments

By keeping an eye on your usage patterns, you can make informed choices about how and when you use electricity, helping you manage your energy costs more effectively.

If you need help reading your bill or setting up SmartHub, our Member Services team is always happy to walk you through it.

No. Crow Wing Power is a not-for-profit cooperative. Any margins above the cost of operating the cooperative are reinvested to maintain and improve our system, ensuring reliable service for all members.

These margins, called capital credits, are eventually returned to members when the cooperative’s financial position allows. In the meantime, the funds are used to support system upgrades, reliability projects, and the long-term financial health of the cooperative—all benefiting current and future members.

As a not-for-profit Cooperative, Crow Wing Power is guided by the seven cooperative principles, including Democratic Member Control. This means members have a direct voice in how the Cooperative is run.

Members participate by voting in board elections, attending Board of Directors meetings, reviewing meeting minutes, and asking questions at the Annual Business Meeting. The board represents members’ interests across Crow Wing Power’s service territory, ensuring that decisions like rate changes reflect the needs and priorities of the people we serve.

If you have questions or wish to speak directly to a Cooperative representative, call our office during regular business hours at 800-648-9401.

In past years, Crow Wing Power applied a Summer Power Cost Adjustment (PCA) during June, July, and August to help cover higher wholesale power costs. This adjustment, typically up to 2.5¢ per kWh, increased electric bills during the summer months.

Going forward, a Summer PCA will only be used if necessary. Removing the PCA keeps the electric rate more consistent and better aligns it with wholesale power costs from Basin Electric. Members who use more electricity in the summer will likely see smaller increases in their overall summer bills since the new energy rate does not include a seasonal PCA.