Understanding the Energy Cost Adjustment
Tim Marienau, CEO

In November 2016, Prairie Energy Cooperative (PECO) implemented an Energy Cost Adjustment (ECA) as part of its Tariff, which applied to all rate schedules. The ECA appeared as a separate line item on members’ energy bills and resulted in either a charge or a credit, depending on changes in wholesale power costs from our power suppliers, Corn Belt Power Cooperative and Basin Electric Power Cooperative.

In May 2019, the PECO Board of Directors suspended the ECA when wholesale power costs were stable. However, over the past several months, Prairie Energy Cooperative has experienced continued increases in wholesale energy costs and other power-related expenses. After careful consideration, the Board of Directors has made the decision to reinstate the ECA effective August 1, 2026.

Beginning with the August 2026 energy bill (for July usage), members will see the ECA listed as a separate line item. The adjustment reflects changes in the cost of wholesale power and may vary from month to month. Depending on the actual cost of power, it may appear as either a charge or a credit on your bill.

Prairie Energy Cooperative works hard to maintain reliable service and rates for our members. However, a significant portion of our costs come from wholesale power, and those costs are outside of PECO’s control. In fact, more than 75% of our monthly fixed costs are related to wholesale power.

This year, Prairie Energy is also completing a Cost of Service Study to review our rates and ensure they continue to fairly reflect the cost of providing safe, reliable electricity to all members. We appreciate your understanding as we navigate these rising costs and continue working to serve you, our member-owners.

Example of ECA on billing statement: