Upcoming Rate Adjustment // February 2026 CEO Column

Providing our members with safe, reliable, and affordable electricity is the mission that guides all we do at Lake Region Electric Cooperative. To make sure your cooperative is well-positioned for the future and to continue providing you with the reliable energy that powers your homes and businesses, we’ve determined a rate adjustment will be necessary this year.

In making this decision, our Board of Directors thoughtfully considered many factors. An outside contractor was first hired to conduct a Class Cost of Service Study. Approved by the Board in October, this study had two main goals: to fully understand how much it costs LREC to deliver power and to ensure those costs are fairly collected across all rate classes. The study examined fixed costs—such as meters, billing, and system maintenance—as well as projected energy costs related to member usage and demand.

After considering these findings, the Board decided to adjust both LREC’s monthly facility charge and the energy charge for the residential rate class (general service). Effective March 1, 2026, the facility charge will be $45/month. The energy rate will be 12.4¢/kWh for summer months (June, July, and August) and 11.0¢/kWh during all other months. Other rate classes will also see adjustments (check out our updated rates summary for details).

While a rate increase is always a difficult decision to make, your Board of Directors believes this approach is the most effective way to ensure LREC can continue to reliably serve our members, even in the face of rising costs industry-wide. Electric cooperatives across the country are facing challenges as inflation continues to drive up costs, aging infrastructure requires major updates, and new technology is increasing the demand for electricity. At the same time, the price of materials and equipment needed to deliver electric service has risen sharply. In some cases, our cooperative has seen an increase in installation costs of over 100% compared to five years ago. Together, all of these factors contribute to a higher cost to deliver power.

As always, please do not hesitate to contact me or our Member Services team with your comments or concerns. Additional information about the rate adjustment can be found on LREC’s website and in future newsletters. We are here to serve you!

Cooperatively yours, 

Joel Janorschke, CEO