Dakota Energy Cooperative is adjusting rates for the first time in six years. These changes are due to a 2.6% increase in the cost of wholesale power from East River Electric and Basin Electric, compounded by increases in material and equipment prices used to maintain our distribution system. The changes will impact all rate classes, including adjustments to demand rates and service availability charges. You will see this rate increase on your electric bills rendered after January 1, 2024. You can see a complete list of new rates here.

We understand no one likes to pay more. That’s why Dakota Energy has tried hard to keep rates the same, which we’ve been successful in since 2018. But when we received the latest cost of power increase from our power supplier, we were unable to absorb it. After thoughtful and deliberate consideration of the rise in power costs and the impact on the cooperative's financial stability, Dakota Energy’s Board of Directors approved the rate change at the October board meeting. Your cooperative is committed to providing reliable power and quality service at the lowest possible cost and is working hard to minimize the impact of the necessary rate increase. Approximately 73 cents of every dollar Dakota Energy receives is allocated to pay for the wholesale power we sell to our members; the remaining 27 cents fund the material, labor, and equipment Dakota Energy uses to serve our members.

 

The cooperative’s engineering service, Power Systems Engineering, recently conducted a rate analysis. This study provided data that showed Dakota Energy’s current rates would not supply enough revenue to cover the anticipated expenses for 2024. They are seeing increases nationwide due to rising material and equipment costs. It also showed that Dakota Energy will need annual increases in the coming years to cover the cost of operations and meet our mortgage ratio requirements.

 

To remain flexible, Dakota Energy offers a variety of payment options; members can choose one that works best for their budget. Budget Billing helps avoid bill fluctuations by calculating an average of the previous 12 months' usage into an even monthly payment. SmartHub – Pay Now – Automatic Bill Payment – Pay by Phone are great electronic payment options, too. More information is available here. You may alsostop in the office and drop off your payment at the counter or in the convenient drop box.