As summer draws to a close and another school year begins, our leadership team is also beginning work on Southeastern’s 2027 budget. As a not-for-profit electric cooperative, we take that responsibility seriously. Our goal is to operate efficiently while continuing to provide the safe, reliable, and community-focused service you expect from your cooperative.
As I’ve shared previously, wholesale power costs are rising across the country as electric demand grows faster than new generation and transmission can be built. In response, our focus is to plan carefully, advocate for prudent investments, and help ensure the energy system can keep up with demand so you can count on having the power you need, whenever and wherever you need it.
Recently, Basin Electric Power Cooperative, our primary wholesale power supplier, informed member cooperatives that its wholesale power rates will likely increase approximately 8% in January 2027. A key reason is Basin’s need to invest nearly $8 billion over the next ten years in new generation and transmission resources to meet growing residential and commercial demand. These investments do not include the costs of serving extremely large loads, such as data centers. Under Basin’s Large Load program, those large loads are expected to fund the facilities needed to meet their energy requirements.
At Southeastern, higher wholesale power costs will require the Board of Directors to consider a retail rate adjustment in January 2027. Wholesale power purchases represent 68% of our operating costs, so changes from our wholesale suppliers have a direct impact on Southeastern’s budget. We do not take this responsibility lightly. We understand any change affects household, farm, and business budgets, and we will continue to manage costs carefully on behalf of our members.
We are also working to limit the impact of these higher wholesale costs. For example, we have asked Basin to explore options to phase in the rate change over multiple years while protecting its A credit rating, which helps reduce borrowing costs. At Southeastern and Union County, we are looking for efficiencies through a possible merger and more strategic material sourcing. Every decision is guided by the same purpose: protecting reliability, controlling costs, and providing the best possible value for you, our member-owners. Southeastern works closely with our generation and transmission partners to share costs, improve efficiency, and secure the reliable power supply our members depend on every day.
I want to assure you that Southeastern remains committed to transparency, responsible cost management, and decisions made with our members’ best interests in mind. Thank you for your continued trust and support as we work together to meet your energy needs safely, reliably, and affordably.
Chad Kinsley
CEO
Southeastern Electric Cooperative