In our January | February issue, I shared how Cloverland Electric Cooperative is working to build a stronger, more resilient electric system for the members we serve. Our commitment to reliability, safety and long-term affordability guided the comprehensive cost-of-service study completed in 2025. I’d like to share the outcome of that work and what it means for members in the years ahead.
A cost-of-service study is a detailed, independent analysis that examines how electricity is delivered to different member classes and ensures rates fairly reflect the actual cost of providing service. This study confirmed what we have experienced across the electric industry: rising costs for power supply, system maintenance, equipment, labor and regulatory compliance are placing sustained pressure on utility operations. At the same time, Cloverland must continue investing in infrastructure to maintain reliability across our large, rural service territory and 58 islands—often under challenging weather conditions.
Based on the study’s findings, the Cloverland Board of Directors approved a three-year, phased rate adjustment designed to minimize short-term impact while responsibly addressing long-term needs. Beginning in 2026, residential members can expect an average rate increase of approximately 6.5% in year one, followed by the same adjustments in 2027 and 2028. Commercial and nonresidential members will see a collective average increase of approximately 9.6% in year one, also followed by stepped adjustments over the next two years.
Importantly, this approach avoids a single, larger rate increase and allows members and businesses time to plan. It also supports continued investment in system reliability, local renewable generation through our hydroelectric plant, workforce training and technology improvements that strengthen service and responsiveness.
I know any rate increase matters to household and business budgets. Please know this decision was made carefully, with a focus on fairness, transparency and long-term value for the cooperative as a whole. Detailed information about the rate adjustment, including rate tables and bill impact examples, is available at cloverland.com/2026-rate-adjustment.
Cloverland exists to serve its members—not shareholders—and every decision we make is rooted in that responsibility. Thank you for your continued trust as we work together to ensure reliable, affordable power today and for generations to come.