Powering growth responsibly

Electricity plays a role in nearly every part of our day by powering devices, keeping our homes comfortable, and supporting businesses that provide essential services. As energy needs continue to grow, so do the responsibilities that come with planning, producing, and delivering reliable power.

Recently, the Basin Electric Board of Directors authorized a Class A rate increase of approximately $6 per megawatt-hour, or 10%, beginning Jan. 1, 2026. Rate increases are never easy, which is why Basin Electric is focused on transparency around what’s driving the change and how we are responsibly planning for the future.

Why wholesale power costs are increasing

Every step in the electricity distribution process carries unique costs—fuel, labor, and infrastructure—that ensure the system runs safely and efficiently. Electricity rates reflect the real costs of providing power, supporting upgrades, and distribution buildouts as the membership grows. Rate adjustments help the system remain reliable and ready for the future.

The drivers behind the 2026 rate increase include:

• Growth in traditional load: This includes a variety of sectors, including agriculture, oil and gas, ethanol, manufacturing, and residential demand.
• Commodity price variability: Fluctuations in commodity prices affect the cost of fuel for Basin Electric and sales revenue at its subsidiaries.
• Increase in planning reserve margins: Southwest Power Pool will require Basin Electric to have higher capacity reserves, increasing capital expenditures, operating costs, and purchase power.
• Investments in reliability: Basin Electric will continue to make investments in system reliability, including upgrading existing facilities and reducing outage cycle times.

Growth is part of Basin Electric’s story

From 67 initial members in 1961 to 139 today, responsible growth has long been a part of Basin Electric’s legacy. However, Basin Electric is entering a new era with significant interest in large load and delivery point requests from its membership.

Historically, a three- or a five-megawatt (MW) load was considered a “large load.” Today, some proposed projects within Basin Electric’s service territory would require 50 MW, 100 MW, or more. It took more than a century to build the infrastructure that serves today’s electric needs, yet the same scale of development is now being requested in just a few short years.

The Large Load Commercial Program

Given the potential magnitude of these loads and the significant investment required to serve them, Basin Electric worked with its members to develop a program with processes that enable us to serve these loads while mitigating the risk of serving them to our current membership. The Large Load Commercial Program is not designed to be a barrier but rather a tool to support members navigating this significant large load growth.

What the program does:

• Minimizes rate impacts to Basin Electric members: Helps insulate existing members from the costs and risks of serving non-traditional new loads such as data centers.
• Shared opportunity: Strengthens local economies, and all members share in member growth, cost savings, and returns.
• Safeguards financial strength: Reduces the risk of stranded assets, protects Basin Electric’s credit rating, and supports responsible capital investment.
• Enables flexibility: Provides a clear process that supports system growth while prioritizing member interests.

Looking ahead

Meeting growing energy needs requires careful planning, wise investments, and clear communication. By addressing wholesale power costs and planning responsibly for energy growth, Basin Electric ensures a reliable, affordable power supply for all members today and for generations to come.