In September, the Basin Electric Board of Directors authorized a Class A rate increase of $5.33 per megawatt-hour, or approximately 7.5%, beginning Jan. 1, 2027.
The 2027 rate increase represents the next phase of the rate adjustment that began in 2026. It is driven by the same factors as the 2026 increase:
Growth in traditional member load: To serve this growth, Basin Electric is investing in new generation and transmission projects at higher costs than our existing fleet. These investments are funded through a combination of outside lending and member equity, with higher margin levels providing an additional source of member equity.
Commodity price variability: Fluctuations in commodity prices affect Basin Electric's fuel costs and our subsidiaries' sales revenue.
Increase in planning reserve margins: Southwest Power Pool will require Basin Electric to maintain additional generating capacity to help ensure sufficient resources are available during periods of peak demand. Meeting these requirements increases capital expenditure, 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 cycles.
Materials to support conversations about the rate increase are available on Basinmembers.com, on the "Rates Training" page. More materials will be added in the coming weeks.
