By Tim Marienau, CEO

Like almost everything else in our world’s current economy, global energy markets continue to be under stress. Because wholesale energy costs will be higher as 2026 progresses, the Prairie Energy Cooperative (PECO) Board of Directors will be approving a rate increase with the membership. The increase equates to an average of about 10% for all members, residential, irrigation, commercial, and industrial. The average cost increases will vary with each member’s monthly usage. 

The 2026 increase is due to a combination of reasons, including rising costs in prices to generate, transmit and distribute electricity, and in supplies and equipment. Both PECO’s generation and transmission cooperatives (Corn Belt and Basin Electric) are experiencing significant increases in the costs of fuel, equipment, transportation, and maintenance of plants and transmission lines. These amount to over 70% of the total expenses for PECO. With increases in both energy and demand charges passed along to PECO, the co-op’s power costs will soar by over 10% this year, with additional increases scheduled for the next several years.

Additionally, expenses related to required distribution equipment such as wire, transformers, conductor, poles, and vehicles continue to rise due to tariffs, inflation and supply chain issues. In some cases, prices for equipment have risen over 300%. The cost of PECO’s inventory on hand has increased by three times just in the last two years.

“A rate increase is never desirable but necessary for the cooperative’s economic resilience,” said Prairie Energy CEO, Tim Marienau. “We understand these are extremely difficult times with inflation and the costs of all goods and services rising. As your energy partner, we try to absorb as much of an increase as possible.” However, the increases to PECO this year, and those in the future, Marienau said, are so large that the cooperative is unable to absorb the full amounts. “We realize a rate adjustment at this time will be difficult for some of our members, and we will do all we can to assist with energy efficiency, conservation and rebates.”

In addition, Marienau states they are reviewing other options to help with the rate increases.

• Building financial reserves to soften the 2026 rate increase.
• Finding smarter, more efficient ways to operate without adding to our fixed expenses.
• Reviewing how much is spent in rebuilding electric distribution lines on an annual basis without impacting reliable service.
• Reimplementation of the energy cost adjustment on monthly bills.  

“The delivery of safe, reliable, and affordable energy to PECO members is paramount,” Marienau said. “Continuing to do so as well as upgrading and maintaining our infrastructure and keeping the co-op financially sound means that we must regularly review our rates and implement adjustments if they are needed.”