Last August at the Basin Electric Member Managers meeting, we learned that Basin Electric Power Cooperative would be implementing a rate increase. Rather than a single, significant adjustment, Basin chose a phased approach, spreading more moderate increases over two years. Their long-term forecast shows that following this period, rates are expected to stabilize. We were fortunate to host Chris Baumgartner from Basin at our Annual Meeting, where he spoke about the cooperative model, investments in generation, and how we work together to reliably and safely meeting growing energy demand. If you were unable to attend, I encourage you to visit Crow Wing Power's YouTube channel to view the recording.
When we received notice of Basin's increase, your Board of Directors and leadership team got to work. We partnered with Power Systems Engineering to conduct a comprehensive cost-of-service study. The goal was simple: create a structure that is fair, equitable, and sustainable across all member classes. As part of that work, a modest $2 increase to the base charge was implemented to support ongoing facility upgrades and planning for a new energy and services center. These are investments necessary to serve you reliably today and into the future.
I won't pretend that any rate increase comes easy. We're aware that rising expenses are impacting many people, and this type of change can naturally bring some frustration. But it's also where the strength of the cooperative model matters most. Every decision is made with a long-term view, with careful analysis, and with you, our members, at the center of it.
That brings me to an important distinction that sets Crow Wing Power apart: the Power Cost Adjustment or PCA. A PCA is a fluctuating line item on an electric bill that reflects the real-time cost of power. It can move up or down based on fuel prices, weather, and market conditions. During periods of extreme cold or heat, utilities may be forced to purchase high-cost energy to meet demand. For many cooperatives, those costs are passed directly to members through a PCA, resulting in unpredictable monthly bills.
Historically, Crow Wing Power also utilized a PCA. During periods of extreme weather, members could see additional charges, often in the range of $6 to $12 per month, added to their bills. Through our recent rate restructuring, we made the deliberate decision to remove the PCA.
By eliminating the PCA, your bill becomes more predictable. The base charge is fixed, and the energy portion reflects your actual usage. That means your efforts, whether it's upgrading equipment, improving efficiency, or simply being mindful of use, have a more direct and consistent impact on your monthly costs. In a region where weather can change quickly, that level of predictability matters.
We know this is a complex topic, and we've made it a priority to provide more information and tools than ever before. I encourage your to visit cwpower.com, where you can explore rate information, use our bill calculator, and find practical energy-saving tips. And as always, our team is here to help. If you have questions, we welcome the conversation.
At the end of the day, this is your Cooperative. We are navigating these changes together with transparency, thoughtful planning and a shared commitment to keeping Crow Wing Power a strong, reliable place to belong.
Your Cooperative, Our Commitment,
Tim Thompson
Chief Executive Officer