When it comes to your electric bill, one of the most common questions we hear is: Why are costs going up? It’s a fair question—but the answer isn’t always simple.

The reality is, while electricity may feel instant when you flip a switch, the process behind delivering that power is anything but.

The largest portion of what you pay each month is the cost of wholesale power—the electricity we purchase before it ever reaches your home. Like everything else, those costs are rising and are shaped by factors beyond our local service area.

One major driver is the growing demand for electricity. Across the country, more homes, businesses and technologies are relying on power than ever before. Meeting that demand requires new generation, which is why construction is underway on a new unit at the Lowman Energy Center. Projects like this are essential to maintaining reliability, but they also represent significant long-term investments.

At the same time, the cost of building and operating power generating facilities has changed dramatically. Global demand for generators and other critical equipment has surged, making them both more expensive and harder to obtain. What used to be a predictable part of planning is now a challenge shaped by supply chain constraints and international competition.

Fuel costs add another layer of uncertainty. Power plants rely on natural gas, and global events influence both price and availability. Ongoing conflicts in other parts of the world have created volatility in fuel markets. That uncertainty doesn’t just affect power plants—it also impacts the cost of fuel used to keep our trucks on the road.

Looking ahead, we’re projecting that wholesale power costs will increase by 20 percent over the next five years. That’s not a number we take lightly, because we know what it means for the families and businesses we serve.

But there’s an important part of this story that works in our favor.

Through our partnership with PowerSouth Energy Cooperative, we’re able to access power at a scale and price that would not be possible on our own. By working together with other electric cooperatives, we share resources, manage risk and keep costs as stable as possible.

The cooperative model — neighbors working together for the benefit of all — remains one of our greatest strengths.

While we can’t control every factor that influences the power costs, we can control how we respond. We focus on making informed long-term decisions, maintaining reliable service, and keeping your cooperative in a strong position for the future.

At the end of the day, our commitment is simple: to provide reliable and affordable electricity with the safety of our employees and members at the forefront—no matter what challenges come our way.