Over the past several months I’ve shared that the cost of delivering dependable, high-quality power to our members continues to rise — faster and more sharply than in years past. As a cooperative, we take our responsibility to manage costs seriously. We know every dollar matters to our members, so we’ve taken a hard look at our financial outlook and future needs.
To continue powering our homes, farms, and businesses with the level of service our members expect - and deserve - UEC is preparing for an increase to generate the necessary revenues.
This decision is not being made lightly. We understand the impact rate changes can have on our members, and we are committed to a process that prioritizes equity. UEC is analyzing our rate classes to ensure member groups— residential, commercial, agricultural, and industrial—are paying their fair share based on the cost to serve them. This means some rate classes may see more of a change than others, depending on how closely their current rates align with actual service costs.
The financial pressures driving this increase are not unique to UEC, as shared in recent communications, they are being felt across the utility industry. The costs of critical materials such as transformers, poles, and wire have surged in recent years, often by more than 30% due to global supply chain issues and inflation.
Power supply costs, the largest single component of our budget, have also increased significantly as generation and transmission expenses continue to rise. As I previously shared with you, the upcoming increase from the Bonneville Power Administration—set to take effect on October 1—will amount to $3.2 million on its own.
Additionally, insurance premiums, particularly those related to wildfire liability and property protection, have reached unprecedented levels.
In short, the cost of doing business is higher than ever. And for a member-owned cooperative like UEC, where we are feeling the rising pressures much like everyone else, keeping up with those costs is essential to maintaining long-term system reliability, safety, and service quality.
UEC’s Board and leadership are working diligently to manage these challenges responsibly. We are exploring every opportunity
to control internal expenses and reduce the impact on our membership.
So, what’s the bottom line? Approximately $8 million in additional annual revenue is required. For our residential members, the proposed increase would equate to approximately 60 cents per day—or around $18 per month—on the average bill.
As we move toward finalizing changes later this summer, we want our members to know: equity remains at the core of this effort. Rate
design is not just about raising revenue—it’s about doing so in a way that is fair, data-driven, and aligned with the actual cost of service across all member classes.
We appreciate your continued engagement and support. Additional details will be shared in the coming weeks, including how the proposed changes may affect your individual account. Our team is here to answer your questions and help you understand the “why” behind the numbers.
Together, we’ll continue building a strong, resilient cooperative for the future.