Sioux Valley Energy
General Manager/
Chief Executive Officer
It’s hard to believe that the summer months are winding down and we are gearing up for all the typical Fall “things” like the start of school, harvest, football season, and my favorite—wrapping up road construction!
At the Cooperative the Fall season also signals the completion of many work plan projects, along with a focus on next year’s budget and its subsequent impact on your electric rates. Unfortunately, the message I need to deliver this month is not the best of news.
Preliminary discussions with our wholesale power supplier, Basin Electric Power Cooperative, indicate that our members will likely see a considerable rate increase in 2026 due to significantly higher power supply costs. While this is still a fluid situation and there is much yet to be determined, our commitment to you is to be as transparent as possible –as early as we can.
We will continue to advocate for power supply rate increase mitigation efforts on behalf of our members. This is where we can make the most significant impact on electric bills as more than 60 cents of each dollar you pay to Sioux Valley Energy goes towards power supply costs. Another 20 cents goes directly to paying taxes, interest, and depreciation - which are not controllable costs. This leaves only approximately 20 cents of each dollar you pay that the Co-op has direct control over. While these 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 move into the Fall months we should have a clearer picture of the potential rate impacts of a significant power supply rate increase, and we will communicate those to you as soon as we can.
Over the next several months we will be providing you with more in-depth information about how the electric grid works; what expenses make up your electric bill; the framework of a three-tiered cooperative system; and how electric rates are designed and set. This month we will start with an article about the three-tiered power generation, transmission, and distribution system.
Click to read about the three-tiered system
In closing—as the school year kicks off, be sure to watch for kids and slow down around school zones! We’ll see you next month everyone.
