News > CEO’s Message – October 2026

CEO’s Message – October 2026

A Message about Your 2027 Electric Rates

As we near the end of the year, we realize that many people in our communities continue to feel the pressures of our current economy. Gas and grocery prices remain high, plus we experienced an all-time high price for diesel back in September. Across many economic sectors, there is a sense that costs are out of our control.

At Stearns Electric, we recognize our responsibility to manage our costs and to keep bills as low as possible for you. We know many of our members are facing added pressures, and we are working every day to manage our costs while continuing to provide the safe, reliable electric service that you depend on. 

In April, we announced the results of our cost-of-service study, which indicated the need for a rate increase for our members. As you might remember, your Board of Directors made the decision to move forward with annual rate adjustments, which allows for smaller, more predictable changes benefitting members by:

• Keeping changes more gradual and manageable
• Improving fairness by aligning costs more frequently
• Collecting only what we need year over year

Beginning on January 1, 2027, members will see an overall average rate adjustment of 2.8%. Though we understand no one likes to hear their electricity costs are increasing, I am happy to report that this percentage is lower than the 3.3% that our most recent cost-of-service study indicated we would need. Our 2027 rate adjustment reflects the minimum increase needed to balance reliability, efficiency and careful management of your Cooperative’s resources.

Please note, this percentage does not include the Base Power Cost Adjustment (PCA). We will not know what our PCA is until November, and I will communicate that to you as soon as we know.

I also want to point out that the 2.8% increase represents the overall percentage that Stearns Electric’s total collected revenue will increase. It is the average rate adjustment across all members and rate classes. The actual percentage of increase you will see on your bill will vary based on your energy usage.

Also in 2027, approximately 670 members will begin seeing a new line item on their monthly bill: a Demand Charge. If you are one of these members, you will receive direct communication from the Cooperative soon.

You can find more information about how this rate adjustment impacts your bill on our website, stearnselectric.org/rate-adjustment-2027.

I want you to know that we are here to help. As always, if you’re having trouble paying your electric bill, please reach out to us. Our team is available to talk through your options and help you find the support you may need.

FOR FULL DETAILS: Visit stearnselectric.org/rate-adjustment-2027 for the full details of the 2027 rate adjustment, including a list of Frequently Asked Questions, a full list of our various rate classes and more. 

Thank you for the trust you place in us. On behalf of all of our employees and your Board, we take our responsibility to serve you seriously and are committed to working hard to deliver the reliable energy you depend on every day.

Sincerely,

Matt O’Shea
Chief Executive Officer