Cloverland Electric Cooperative members will see phased rate increases beginning in 2026 following the completion of a comprehensive cost-of-service study aimed at ensuring rates accurately reflect the cost of providing electricity across the cooperative’s large and rural service area.
According to Cloverland Electric President and Chief Executive Officer Michael Heise, the independent study examined how electricity is delivered to different member groups and evaluated whether current rates align with the actual costs of service. The findings confirmed ongoing financial pressures facing electric utilities nationwide, including rising costs for power supply, system maintenance, equipment, labor and regulatory compliance.
Heise also pointed to the unique challenges of maintaining reliable service across Cloverland’s extensive territory, which includes remote rural areas and 58 islands. He said continued investment in infrastructure is necessary to maintain system reliability and safety.
Based on the study’s results, the Cloverland Board of Directors approved a three-year rate adjustment plan designed to spread out the impact rather than implement a single large increase.
Beginning in 2026, residential members are expected to see an average rate increase of about 6.5 percent, with similar increases planned for 2027 and 2028. Commercial and nonresidential members will see an average increase of about 9.6 percent in the first year, followed by additional phased adjustments over the next two years. Altogether, residential phased adjustments are expected to result in total rate increases approaching 20 percent by 2029.
“The phased approach is intended to give both households and businesses time to plan while supporting necessary investments in system reliability, workforce training, technology upgrades and local renewable energy production, including power generated from the cooperative’s hydroelectric facilities”, said Heise.
Heise acknowledged that any rate increase can affect household and business budgets but said the decision was made with a focus on fairness, transparency and maintaining long-term affordability and reliability.
More detailed information about the rate adjustments, including rate tables and examples of potential bill impacts, is available on Cloverland Electric Cooperative’s website.
