2026 Work Plan and Budget

On a local level, our crews will be busy this year – working on the continuation of our aggressive yearly 125-mile replacement schedule. Our current four-year construction work plan, which covers years 2024-2027, will total $92.4 million with more than $25 million of that total to be used this year for the Cooperative’s capital work plan. We anticipate the total value of our utility plant to reach $413 million by the end of 2026. 

A 9.1% increase driven by power supply costs went into effect for our members January 1, 2026, and appear on the February 2026 billing statements. Our power suppliers have indicated we will see another increase in 2027 and possibly into subsequent years as well. 

Beyond increasing power supply costs, Sioux Valley Energy is also facing rate pressure from the distribution (local) side of the system with increased costs for nearly everything including materials, fleet, tools, equipment, transformers, line, financing, etc. 

We are in the process of reviewing the Sioux Valley Energy residential, rural residential, and general service rate structures, which presently only have two billing components (energy and basic service charge). We have been able to hold the basic service charge flat the past two years while continuing to invest in the system. However, that is not sustainable if we want to maintain high reliability in the future. 

The current rate structure for those rate classes do not align with how the Cooperative is billed by its power suppliers. Approximately 50% of the Cooperative’s power bill is based on demand charges and in the past, those demand charges were built into both the energy and basic service billing components for residential, rural residential, and general service accounts. As our power suppliers work to add more infrastructure to meet the demand of our legacy members and Sioux Valley Energy continues to invest in the local system, it has become imperative that the Cooperative break out demand charges from the basic service and energy charges. Starting in 2027, residential, rural residential, and general service will have three billing components that cover costs for basic service, energy, and demand. 

We hope you will join us at this year’s district meetings to learn more about changes that will take place next year to your electric bill. Please watch for your postcard invite to our upcoming district meetings