We work hard to keep rates affordable while committing to provide reliable electricity and excellent member service. As a not-for-profit cooperative, our rates are designed simply to cover the costs of wholesale power, transmission and distribution related costs and adequate margins.
Rate Adjustment 2024
Member Notice: Rate Adjustment Begins March 1, 2024
In recent years, Crow Wing Power experienced significant benefits from growth and adjustments in its power portfolio, allowing us to avoid any rate changes for the past five years.
However, the Board of Directors recognizes the current economic challenges and has concluded that certain adjustments to rates will be essential in 2024 and beyond. This decision is crucial to fulfill the Cooperative’s needs, ensuring the sustained quality, reliability and safety of service we rely on.
As an at-cost electric service cooperative, our members collectively contribute as both owners and patrons, covering the expenses of the services provided. In turn, when we have good years with excess margins, money is returned to members as was the case in 2020 and 2021 with bill credits. In times of inflationary cost increases, it becomes necessary for members to collectively contribute to meet these elevated costs.
Addressing Rising Costs and our Commitment to Service CEO Column, November 2023
Board Reviews State of the Cooperative-Approves Budget Board President, December 2023
Economic Pressures Cause Rate Adjustments CEO Column, January 2024
The chart below outlines the changes in rates effective March 1, 2024. Members will see the adjustment on their April bill for March's electric use.
The sample bill is provided with the calculated average at 860 kWh with new rate adjustment.
When will the rate change take effect?
Rate Adjustment will go into effect March 1, 2024. Members will see the adjustment on their April bill for March’s electric use.
Who determines when a rate change is necessary?
Crow Wing Power’s Board of Directors has determined with today’s economic challenges a rate adjustment is necessary to meet the needs of the Cooperative and to ensure the continued quality, safety, and reliability of service.
Why does the Cooperative need to adjust rates?
Crow Wing Power is feeling the effects of escalating costs in equipment, materials, and services, affecting our finances and operations. For instance, infrastructure material prices have surged by up to 90% in the last three years. To sustain the delivery of reliable electricity amidst these rising costs, adjustments to electric rates are necessary.
*As mentioned in the November CEO article, >>Every nut, bolt and piece of equipment we use has dramatically jumped in price in three years, but we're really feeling the pressure on the common big ticket items. For example, a residential 15kVA overhead t that we paid $581 for in 2020, cost almost double at $1,153 this year. The big green padmount transformer boxes you see in yards that have underground electric service more than doubled from $1,011 to $2,080 in the past three years. We ordered 400 annually so that one item alone has a big impact.
How will the new rates affect my monthly electric bill?
The chart below reflects the change in rates effective March 1, 2024, for our most common rate classes.
When was the last time Crow Wing Power did a rate adjustment?
Crow Wing Power last adjusted rates in 2018, when the monthly service availability charge increased $2.00.
*historical rates timeline shows basic charge adjustments.
How does Crow Wing Power compare to other Minnesota electric Cooperatives and utilities?
Crow Wing Power rates are reasonable and in line with cooperatives across the State of Minnesota.
Why is energy sometimes less expensive with investor and municipal-owned utilities?
Electric cooperatives serve mainly rural areas that have only six to eight customers per mile, unlike municipal and investor-owned utilities which have higher density populations of 34 to 48 or more consumers to share in the cost of infrastructure.
What is Wholesale Power Cost Adjustment (PCA)?
A per kilowatt-hour adjustment to your bill due to changing wholesale power costs from Crow Wing Power’s wholesale power providers. *Summer demand can cause higher PCA's
What is Base Charge?
This charge, currently referred to as Service Availability Charge, represents Crow Wing Power’s cost of delivering electricity and maintaining equipment, regardless of whether a member uses power. It accounts for our investment in poles, wires, transformers, and labor to provide members with electric service. It supports fleet, facility, and member service functions, such as outage response, line maintenance, and right-of-way clearing.
What if I am on budget billing, prepay or energy assistance?
Nothing will affect the monthly process of how you pay your electric bill. If there are adjustments needed for budget billing, the billing department can help members with those adjustments.
*If you are experiencing financial hardship, call our Billing Department during business hours so we can review your options and direct you to agencies for help or assistance.
I only utilize power seasonally- can I disconnect my power and reconnect when I return?
Crow Wing Power, like other electric cooperatives and utility services, imposes a Service Availability Charge or Base Charge, that reflects the member’s share of fixed costs associated with materials and equipment installed and available for power. This ensures the continuous availability of essential services. If seasonally disconnected,(less than 12 months) a reconnect fee plus the missed monthly service availability charges would be billed before reconnecting. Members save money by staying connected and incurring the monthly basic charge.
What can I do to help reduce my electric bill?
Crow Wing Power offers a wide range of programs and technologies to help members manage electricity use and save money. Our Member Service Department can assist members and businesses with energy-saving programs and rebates. We encourage members to visit our Energy Savings blog for easy energy-saving ideas.
The Billing Department offers multiple ways to help manage your power bill, including automatic payment options and budget billing.
What is Crow Wing Power doing to control spending and decrease costs?
Crow Wing Power, as a not-for-profit Cooperative, has consistently operated with slim profit margins. To help minimize budget constraints, we were able to prioritize work plans and postpone some projects. Staff and management has taken hard look at processes and moved some previously contracted services in house where possible.
Will I see an increase in 2025 rates?
The 2024 rate adjustment is geared toward preserving budget stability, safeguarding programs, and ensuring our members have the safe and reliable power we’ve come to expect. We’ve tried to anticipate what future years might look like in our planning, but analysis takes place annually.
Where can I find more information?
If you have questions or wish to speak directly to a Cooperative representative, call our office during regular business hours at 800-648-9401.