Rate Increase Estimate

SVE employees working

For several months, we have been addressing a coming rate increase scheduled for this January due primarily to increasing power supply costs.

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Tim McCarthy
Sioux Valley Energy 
General Manager/
Chief Executive Officer

Sioux Valley Energy’s operating budget in 2025 was set at nearly $115 million, this number will need to be increased in 2026. Over 60% of the organization’s operating budget goes towards paying for wholesale power; approximately 20% goes towards what we consider “set” expenses or uncontrollable costs such as taxes, interest, and depreciation. That leaves just under 20% of the budget that is considered “controllable.”

A significant portion of that percentage is allocated towards labor expenses, which is needed to ensure the continuation of reliable power and services to our members. In the end, only about 6% of the Cooperative’s operating budget is truly controllable. While all controllable costs will be scrutinized heavily to mitigate what we can, significant cuts in this portion of the budget would have a negative impact on the service you receive today.

As we work through our operating and capital budgets to develop rates, please know the Cooperative’s Strategic Leadership Team, Board of Directors, and employees are all focused on you, the member. That focus is based on our organizational commitment. Click here learn more about the Sioux Valley Energy commitment.

What members really want to know is how much their rates will increase in 2026. At the time of this video taping, we are still just under three months away from year-end and weather could have either a positive or negative impact on electric sales for the remainder of 2025 which can influence 2026 rates. However, given what we know now, and the expected rate increase from our power suppliers – which is approximately 11% - we are anticipating an average rate increase to members of approximately 9%. Again, as I said, these are not final numbers as we still have almost three months left this year. The Board will be reviewing rates in November, and we hope to provide you with the final rate adjustments at that time.

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