Upcoming Rate Adjustment to Address Rising Costs

Todd-Wadena Electric Cooperative (TWEC) is set to implement its first rate adjustment in over a decade, beginning on September 1^st. This decision comes after a cost of service study conducted by Power Systems Engineering revealed that TWEC could not continue to absorb the increased costs being incurred. The various factors contributing to the need for this change include, but are not limited to, wholesale power costs, long-term interest rates, increased construction needs, material costs, and other inflationary changes.

While the average rate adjustment is approximately 13%, the actual impact on individual members will depend on their specific rate structure and kWh usage. TWEC’s Board of Directors takes into consideration numerous factors when setting rates—ensuring a diligent approach to balance maintaining reliable electric service, rates that are equitable across all members, and the cooperative’s overall financial stability. These considerations reflect the cooperative’s commitment to providing sustainable and affordable electricity to its members while maintaining its own operational health.

The forthcoming rate adjustment serves as a vital step for TWEC to align its pricing structure with the current economic realities. By addressing the increasing costs experienced over the past few years, TWEC aims to ensure the continued provision of reliable electricity to its valued members, and remains dedicated to making prudent financial decisions that benefit members.