Wholesale electricity rates to rise 2.4% in new year, beating prior projections
Great River Energy’s board of directors approved the cooperative’s budget and wholesale electricity rates for its member-owners in the year ahead.
The average wholesale electricity rate for all of Great River Energy’s member-owners is budgeted to rise 2.4%, which is lower than prior forecasts.
“Our 2027 budget funds our business sufficiently to keep our employees safe, maintain reliable electric service and continue making progress toward our goals,” said Great River Energy Vice President and Chief Financial Officer Michelle Strobel. “There are many factors driving up the cost of generating and transmitting electricity, but we are also seeing the benefits of strategic decisions moderating rates.”
As a cooperative, Great River Energy provides electricity at cost, only reserving enough margin to operate the business.
The 2027 revenue requirement is budgeted to be $1.18 billion, the majority of which is recovered from Great River Energy’s 26 member-owners cooperatives through the sale of wholesale electricity.
Great River Energy is in a period of elevated capital spending, primarily driven by investments in transmission to maintain reliable electric service and strengthen the regional grid.
“Great River Energy will begin the new year in a position of strength, with wholesale rates well below the weighted regional average and plans to advance strategic investments for the future,” Strobel said.
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