News > CEO’s Message – September 2026

CEO’s Message – September 2026

Energy Issues Summit Recap

Across Minnesota, electric cooperatives are planning for rising infrastructure costs and increasing electricity demand. These pressures are influenced by changing energy policies, evolving generation resources, regional transmission needs and new sources of load. Through these changes, our focus remains on delivering safe, reliable and affordable electric service to our members. 

In early August, four of your directors and I attended the Minnesota Rural Electric Association’s Energy Issues Summit. More than 200 cooperative leaders, directors and industry experts gathered to discuss the challenges and opportunities shaping Minnesota’s electric future. 

One key theme was the need for continued investment in generation and transmission infrastructure. Regional planning studies indicate demand for electricity is expected to increase over the next decade, driven by economic growth, electrification and emerging large-load opportunities. Utilities and regional planners must ensure adequate generation capacity is available under a variety of conditions. As the generation resource mix evolves, long-term planning is increasingly important to meet reliability, affordability and policy objectives. 

At the same time, many generation facilities and transmission assets constructed in the 1960s and 1970s are approaching the point where major upgrades or replacement will be required. A reliable electric system depends on the ability to move power efficiently from where it is generated to where it is needed. As infrastructure ages, regional transmission investments will play an important role in maintaining reliability and supporting future growth. 

Our wholesale power provider, Great River Energy (GRE), has been planning for these challenges for many years and continues to develop its long-term generation and transmission strategy. GRE is involved in several transmission projects across Minnesota. One project within our service territory is the Alexandria to Big Oaks transmission line along the I-94 corridor. Members interested in learning more can visit alexandriatobigoaks.com. 

Another topic discussed at the summit was the growth of large electrical loads, including data centers. While we have received limited inquiries, we are not aware of plans for a large data center development within our service territory. 

Within the MISO region, any proposed large load must meet stringent interconnection and planning requirements designed to maintain system reliability. Additionally, GRE’s policies are structured so that costs required to serve a new large load are assigned to the entity creating those costs, not member cooperatives. Stearns Electric would not support a project that shifts costs to or results in higher rates for our members. 

Together, these safeguards protect reliability and ensure costs remain with the parties creating them. If a large-load project moves forward, the revenue associated with that load could help offset future cost pressures for existing member-consumers. Stearns Electric remains committed to ensuring that any future large-load development supports system reliability while protecting the interests of our membership. 

The discussions at this year’s summit reinforced the importance of long-term planning in a rapidly changing industry. By staying engaged in these conversations and working closely with our industry partners, we can continue making informed decisions that support reliable, affordable service for you, our members. 

Sincerely,

Matt O’Shea
Chief Executive Officer