Both of Todd-Wadena Electric Cooperative’s (TWEC) wholesale power suppliers, Great River Energy (GRE) and Western Area Power Administration (WAPA), have announced rate increases for 2025. These adjustments reflect strategic investments aimed at improving grid reliability, supporting mandated renewable energy, and ensuring financial stability.
Great River Energy (GRE)
Great River Energy, TWEC’s primary wholesale power provider, is budgeting approximately $1.1 billion in revenue and expenses for 2025. This budget supports GRE’s operational needs and funds critical investments in the electric grid. One major initiative involves the buildout of high-voltage transmission lines to reduce congestion and create pathways for increased integration of state mandated renewable energy sources. These investments are vital for delivering a reliable and sustainable energy future.
GRE’s Vice President and Chief Financial Officer, Michelle Strobel, explained, “We are entering a period of capital investment, but the end result will be a stronger grid and more reliable electric service. These investments are strategic and will result in lower costs over the long term.”
As part of this strategy, GRE is increasing its 2025 wholesale rate by an average of 5.7% compared to the 2024 budgeted rate. This increase will strengthen GRE’s financial position, enabling it to secure favorable funding terms and interest rates. Importantly, GRE operates as a not-for-profit cooperative, meaning all margins collected are ultimately returned to its members, including TWEC, over time as patronage.
While rate adjustments are always a challenge, it’s worth noting that GRE’s rates remain competitive compared to neighboring utilities and are well below the weighted regional cost of wholesale electricity.
Western Area Power Administration (WAPA)
Similarly, WAPA has announced rate changes for 2025. As a federal power provider, WAPA’s rates are influenced by the costs of maintaining its hydroelectric facilities and transmission systems. These changes are part of WAPA’s commitment to providing reliable, affordable electricity to rural communities while maintaining its infrastructure.
What This Means for TWEC Members
These rate adjustments from GRE and WAPA will have a direct impact on TWEC’s wholesale power costs, which make up a significant portion of our operating expenses. We are currently evaluating the extent of these changes and are working to minimize the impact on members.
At TWEC, we remain committed to providing you with safe, reliable, and affordable electricity. Our focus is on managing costs efficiently while ensuring that we have the infrastructure and resources to meet your energy needs now and in the future.
Looking Ahead
These investments by GRE and WAPA represent efforts to create a more robust and sustainable energy system. While rate increases are never welcome, they are necessary to maintain and enhance the reliability of the electric grid and support the transition to the mandated renewable energy sources.
We appreciate your understanding and patience as we navigate these changes. TWEC’s mission remains unchanged: to serve our members with dedication to safe, affordable, and reliable service.
