How Electric Cooperative Rates Are Reviewed

At Big Country Electric Cooperative, one of our most important responsibilities is making sure we can continue providing safe, reliable and affordable electric service to the members and communities we serve. That responsibility involves much more than restoring outages and maintaining power lines. It also means regularly reviewing the cooperative’s financial health and carefully planning for the future.

To support that planning, BCEC conducts a professional rate study every few years to evaluate the cost of providing electric service across our system. These studies help determine whether our existing rates align with the actual cost of serving members. Rates are not set casually or based on guesswork—they are part of long-range planning and responsible financial management.

BCEC works with the National Rural Utilities Cooperative Finance Corp. to complete this analysis, looking at the co-op’s financial picture, system needs and broader trends that impact electric service—including usage patterns, economic conditions and even weather. The study also considers the different types of service across our membership, including residential, commercial and irrigation because each has unique demands and costs. The goal is to understand what it truly takes to build, maintain and operate the system today, and what will be needed to continue doing so reliably in the years ahead.

Rate studies help the cooperative evaluate how to continue providing reliable service in a financially responsible manner. When a study indicates adjustments may be needed, BCEC works to implement changes in a way that helps minimize the impact on members, such as timing them during shoulder months when usage is generally lower. In the coming months, BCEC will continue sharing more information about the results of our recent rate study and what it may mean for members. As always, the cooperative remains committed to transparency and open communication throughout the process.

That matters because the electric system is not static. Costs change. Materials and equipment change. Member needs change. Infrastructure ages. New growth occurs. All of these factors play a role in what it costs to deliver power safely and reliably throughout BCEC’s service area.

Utility materials and construction costs have risen significantly in recent years. The poles, wires, transformers, meters, trucks, equipment and substation components needed to operate a rural electric system cost far more than they did just a few years ago. Inflation has touched virtually every part of the electric utility industry, from materials and maintenance to labor and long-term construction planning.

At the same time, electric cooperatives must continue investing in the system. Waiting too long to make improvements is not a strategy for reliability—it can create greater challenges over time. That’s why BCEC continues to make thoughtful investments in infrastructure that support the service our members expect and depend on.

BCEC serves more than 6,000 members, more than 13,600 meters and more than 5,300 miles of line across the Big Country. That requires maintaining an extensive network to power homes, farms, ranches and businesses throughout our service territory.

In recent years, BCEC has built the Camp Springs, Sylvester and North Hamlin substations, and the cooperative is currently working on a new substation, Nowlin, along with several other planned projects. This year, the TP metering point will be incorporated into the North Hamlin substation, and the new Nowlin substation will replace the Rotan metering point as part of ongoing system improvements. The accompanying map highlights these recent substation and metering point projects, which are just one part of BCEC’s broader systemwide plan to strengthen reliability.

In addition, BCEC has engaged its work plan engineering firm to help develop a long-term plan focused on system reliability. This proactive approach helps ensure the cooperative is not only meeting today’s needs but also preparing for continued growth and system demands in the years ahead.

But maintaining a reliable system goes beyond major construction projects. BCEC also continues ongoing work across the system, including pole inspections, replacing aging poles and equipment, vegetation management, and other improvements that help reduce outages and strengthen service for members. Together, these investments support the long-term reliability of the electric system.

Because BCEC is a member-owned cooperative, decisions about these types of investments are not driven by profits for outside shareholders. Your cooperative’s board of directors and management team work carefully to balance affordability with the responsibility of maintaining reliable service. That means rates are designed to reflect the actual cost of providing electric service while keeping the co-op financially strong enough to continue meeting member needs.

BCEC has not implemented a rate update in seven years. The last phased rate update began in 2019, following a cost-of-service study and board approval, and was structured over three years to help minimize the impact on members. That history reflects the cooperative’s effort to plan ahead, manage costs carefully and avoid more frequent adjustments whenever possible.

Electricity remains one of the best values in everyday life, but maintaining that value requires ongoing investment, planning and thoughtful decision-making. While rising costs are never ideal, Big Country EC approaches these decisions carefully, with a focus on keeping the system strong and continuing to serve our members reliably for years to come.