Like many of you, we’re paying close attention to what drives the cost of power - because it directly affects the bills we all receive and the service we rely on every day.
Despite the mounting cost pressures in recent years, UEC has held average rate increases to approximately 2% annually since 2020 - during one of the most inflationary periods in recent history. This consistency reflects our commitment to financial discipline and thoughtful long-term planning. While interest and insurance rates, supply chain disruptions, and changing regulatory mandates
have created ongoing uncertainty in the energy sector, we’ve worked hard to shield our members from the full impact.
Recently, the Bonneville Power Administration (BPA)— one of UEC’s primary wholesale power providers — finalized its rates for the fiscal period beginning in October 2025, giving us a major piece of the financial puzzle as we plan for the years ahead. BPA has announced two rate increases which impact our bottom line:
- Power rates will see an annual cost increase of approximately $2.5 million to serve our residential, agricultural and commercial members.
- Transmission rates will have an annual cost impact of at least $1 million for those same members.
While actual changes will vary by rate class, BPA’s rate increase represents a significant cost shift—one that arrives as other utility expenses are also rising.
Over the past year, we’ve shared how wildfire insurance premiums, materials like steel poles and wire, and construction services have all risen substantially. These added pressures affect
our ability to maintain and improve the electric system you rely on daily.
It’s also important to know that more than 90% of the revenue UEC collects from members goes directly toward the purchase of wholesale power. That means any increase in BPA rates has
a direct and significant impact on our operating costs—and ultimately, on what we must charge to continue delivering reliable service.
To ensure fairness and financial responsibility, UEC is finalizing a detailed study which determines whether each of our member rate classes is generating the appropriate revenue required to cover the cost of delivering power. This analysis is a critical tool that guides us in setting rates that are equitable and support the long-term health of the cooperative.
We know rate increases are never welcome news, and we do not take them lightly. Every dollar you invest in UEC is carefully managed, and we will continue to advocate for cost efficiency while making smart infrastructure investments that enhance reliability and resilience.
As always, we’re here to answer your questions and provide clarity on how these changes may affect you. Thank you for your continued trust in UEC. Together, we will navigate these rising
costs while staying true to our cooperative values.