With less than two months left in 2023, Great River Energy’s board of directors recently met to determine the cooperative’s budget and wholesale electric rates in the year ahead.
Great River Energy’s average 2024 wholesale rate is projected to increase by an average of 2.2% from the 2023 budgeted rate.
“Our rates remain nearly 20% below the regional weighted cost of wholesale electricity, though we are certainly experiencing cost pressures due to supply chain issues and inflation,” said Great River Energy Vice President and Chief Financial Officer Michelle Strobel.
Many of the local distribution cooperatives that purchase wholesale electricity from Great River Energy continue to face cost pressures due to supply shortages and inflation.
“Thoughtful budgeting is critical to serving our member-owners with energy that is safe, reliable, environmentally responsible and affordable,” Strobel added.
Great River Energy is budgeting for revenue and expenses of approximately $1 billion in 2024. As a not-for-profit cooperative, Great River Energy collects just enough revenue to cover its costs, with a small margin to operate the business. All margins are returned to the membership over the long term.