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Since 1936, East Central Energy has tried to keep our electricity rates as competitive as possible while maintaining the level of service that members expect. However, the energy landscape is evolving, and we are faced with new challenges associated with providing safe and reliable energy. Like other industries, costs in the energy sector continue to rise.

We have not increased residential rates since 2018, but after an independent cost-of-service study was completed, the board of directors found it necessary to adjust our rates in response to rising operational and infrastructure expenses. We don’t take this lightly and have done everything possible to minimize its impact on our members, who are already feeling an economic squeeze. However, to preserve the stability of the co-op, we must implement a cost-of-basic change.

Effective January 1, 2024, ECE will be implementing a rate realignment for bills due in February. The new residential cost of basic will be $45, but the power cost adjustment will continue to be zero. In addition, we’re changing to one lower year-round kWh hour rate of 12 cents—reducing those skyrocketing summer bills for most of our members. For members on load management, the meter charge will increase to $3. We understand that any increase in the cost of essential services can be challenging, especially with current economic conditions.

ECE is a not-for-profit cooperative and is owned by our members. Any margins (profits) we receive are invested back into the electric system or allocated to members in the form of capital credits.  

For those who are struggling, we're here to help! Please reach out as soon as possible to take advantage of available resources. Feel free to browse our website for information regarding:

Your co-op is more than your energy provider. Our employees and board members are your neighbors, friends…maybe even family. We don’t take rate realignments lightly and encourage you to share with us directly at [email protected], to offer suggestions and share your concerns. You’re a member of our co-op family, and we’re here for you. 

Frequently Asked Questions

Is the new fiber venture causing the rate change? No, because our accounting practices separate costs associated with the fiber business from those of electricity distribution. While we’re leveraging the financial strength of the electric side to secure low-cost financing (our good credit is coming in handy), electric revenue is not being used to directly subsidize ECE Fiber.

What has ECE done to mitigate a rate increase? We’ve always been diligent when it comes to budgeting and balancing our expenses. For years ECE has invested in our infrastructure to harden the system against outages. As much as possible, we’ve also: 

  • Applied for grants to reduce direct costs. 

  • Invested to earn interest. 

  • Negotiated prices and escalators for materials. 

  • Reviewed existing contracts to utilize lowest-cost options. 

  • Evaluated capital projects prior to investing.  

Why do members have to pay cost-of-basic if they have a seasonal property? Although seasonal properties may not use as much energy as full-time residences, the distribution system equipment and maintenance required to ensure electricity is available when members need it is the same. Additionally, many seasonal properties have appliances or devices that require electricity even when members are away, such as water heaters, thermostats, refrigerators, and freezers. 

Why did ECE pay out capital credits in 2023 if rates needed to be adjusted? The amount we paid out in capital credits was not enough to recapture the revenue needed to stay financially healthy. It was important to us to equitably return capital credits, and it was an intentional strategy to pay out only those who were members in 1998 and 1999, to better leverage our debt and strategize for the financial future of the co-op. Moving forward, we might need to pay out capital credits more conservatively than members have seen in the past.