Basin Electric announces rate increase

The Basin Electric board of directors has authorized a Class A rate increase of 4-mills per kilowatt-hour, or approximately 6.5%, beginning January 1, 2025. Basin Electric's financial forecast indicated the need for a 5.7-mill per kilowatt-hour rate increase, however after feedback from members, the board elected to use a portion of the Rate Stability Fund to gradually implement the rate increase. Basin Electric is regulated by the Federal Energy Regulatory Commission, which will also need to approve the rate change.

"Several factors are contributing to financial pressure in 2025 that necessitate a rate increase. Lower projected surplus sales in the west and investment and expenses related to growth are some of these factors," Todd Brickhouse, Basin Electric CEO and general manager, said.

The primary drivers impacting Basin Electric's rates are:

• Load growth and investments in reliability
• Decreased surplus sales on the west side of the system
• Impacts of inflation
• Volatility of power markets

"Investments in new generation and transmission facilities are needed to support member load growth, and it's critical to invest in existing facilities to maintain reliability. To accommodate load growth, Basin Electric is investing almost $8 billion dollars over the next ten years in transmission and generation assets to ensure reliable electricity for our members," Brickhouse said.

Basin Electric is also investing in new technology, such as Dynamic Line Rating (DLR) devices, to enhance grid capability in northwestern North Dakota by allowing for more electricity to flow across currently operating transmission lines.

Although rates are increasing, Basin Electric's rates are still in the lower third of G&Ts across the country. In 2023, Basin Electric's average rate per megawatt hour was $60 mills per kilowatt-hour, which was the 13^th lowest out of the 52 G&Ts who reported their statistics. The average rate reported by all G&Ts was $74.54 mills per kilowatt-hour.

Basin Electric will strive to continue providing value to members through affordable rates and other mechanisms as it has done historically. From 2017 through 2023, Basin Electric has retired $247.1 million in patronage credits and contributed a net increase of $335 million to its Rate Stability Fund/deferred revenue. Additionally, Basin Electric provided bill credits to members in the amount of $30 million in 2021 and $115 million in 2022.

The cooperative is working to keep rates affordable by:

• Diversifying the cooperative's generation fleet to include dispatchable and non-dispatchable resources.
• Maintaining a Rate Stability Fund that acts as a cushion for Basin Electric's membership to help avoid or slow unexpected rate increases.
• Utilizing generation on both the east and west Interconnection.
• A sharp focus on cost effective solutions and maximizing the value of our assets.

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