At Cloverland Electric Cooperative, we understand that any conversation about rate increases deserves transparency and context. That’s why I want to share where we are and where we’re headed.
October is National Co-op Month, a time to reflect on what makes your cooperative different. As a not-for-profit, member-owned utility, every decision we make is guided by our core mission: delivering exceptional services through the generation and safe delivery of reliable and affordable energy solutions that encourage growth, foster innovation and strengthen the communities we serve.
Our last rate adjustment took effect in January 2023. Through careful financial management and cost control, we’ve been able to hold those rates for three years. However, a recent cost of service study* shows that due to rising expenses across our operations, a rate increase will be necessary in 2026 along with possible annual adjustments in future years.
We don’t take rate adjustments lightly. Inflation, supply chain volatility and rising wholesale power costs are all driving long-term budget pressures. Our four-year capital work plan requires us to borrow $75 million to make essential equipment upgrades and improvements to our infrastructure.
Between 2021 and 2024, wholesale distributors like Rural Supply Electric Cooperative (RESCO) experienced supply chain disruptions from raw material shortages to long lead times. Fortunately, availability has improved for most material, but transformers, wire and other high voltage materials remain significantly higher and are unlikely to return to pre-COVID levels.
One way we help minimize rate pressure is by welcoming large industrial members to our system. These high-usage accounts generate steady revenue without requiring proportionally higher infrastructure investments. Their participation helps offset costs across our membership and reduces the need for steeper rate increases.
As your cooperative, we’re here to serve you – not generate profit. That means making thoughtful investments, managing costs carefully and communicating openly. We’ll continue to share updates on the 2026 rate plan in the months ahead—and we welcome your questions and feedback.
Thank you for your continued trust and support. Together, we’re powering a stronger future for our Eastern Upper Peninsula service area.