News > CEO’s Message – April 2026

CEO’s Message – April 2026

A Message About Your Electric Rates

Many people in our community are facing challenging times, and no one wants to see rising electric bills. Stearns Electric recognizes our responsibility to work to keep bills as low as possible and we have worked hard to manage our costs. However, our recent Cost-of-Service study indicated an increase in revenue is needed to continue providing the electric service you rely on.

As CEO of your Cooperative, I believe in being open and straightforward about decisions that affect our members. This month’s CEO column is focused on helping you understand what goes into your electric bill and why bills are increasing.

WHAT’S CHANGING AND WHY?
On March 26, your Board of Directors approved a 3.3% rate increase effective May 1. The 2026 adjustment will affect members differently based on usage and rate class. 

We know no one wants to see higher electric bills and we understand the impact this can have on our members and our communities.

WHAT ARE THE DRIVING FACTORS?
This rate increase is due to many factors outside of our control – like rising costs of wholesale power, higher costs for materials and increasing personnel costs.

IS THE NEW FACILITY A DRIVING FACTOR OF THE RATE ADJUSTMENT?
Stearns Electric’s new Operations Center and Headquarters is not a primary factor of the 2026 rate adjustment. In 2023, the Cooperative added $3 to the monthly Fixed Charge specifically to cover most of the construction costs of the facility.

HOW IS STEARNS ELECTRIC CONTROLLING COSTS?
As your power provider, it is our responsibility to manage the costs we can control before asking our members to pay more for their energy.

We’ve been able to operate without a rate increase the last few years by actively managing costs, making efficiency improvements and maximizing technology.

Some specific ways we have controlled costs over the last three years include:

• Continuing to offer load management programs to help reduce wholesale energy costs for both members and the Cooperative
• Remaining committed to bidding out materials and projects, such as power poles, wire, transformers and office supplies, to get the best value
• Managing asset (i.e., vehicles, equipment, trailers, printers, iPads, etc.) replacement with reliability and extending the life of equipment whenever possible

RATE ADJUSTMENT APPROACH
In the past, Stearns Electric has made larger rate adjustments that were designed to last several years. This approach results in over-collecting in early years of a rate adjustment and under-collecting in later years. 

Beginning in 2026, we will move to an annual rate adjustment approach. This means smaller, more predictable changes. This option benefits our members for a few reasons:

• Keeps changes more gradual and manageable 
• Improves fairness by aligning costs more frequently 
• Collects only what we need year over year

At this time, we are currently forecasting additional adjustments of 3.3% for 2027 and 2.4% for 2028. 

WHAT HASN’T CHANGED?
Stearns Electric is a not-for-profit electric cooperative which means we don’t set our rates to make a profit. We are service driven and operate at cost. When profits are made (margins), they are returned to members in the form of Capital Credits.

THE BOTTOM LINE
Our 2026 rate adjustment reflects the minimum increase needed to balance reliability, efficiency and careful management of your Cooperative’s resources.

We are here to help. 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 support.

FOR FULL DETAILS
Visit stearnselectric.org/rate-adjustment-2026 for more information, including a video announcing the rate adjustment, a list of Frequently Asked Questions, a full list of rate schedules and more.

Thank you for the trust you place in us. We take our responsibility to serve you seriously and are committed to working hard to safely deliver the reliable electricity you depend on every day. 

Sincerely,

Matt O’Shea
Chief Executive Officer

__________________________

BOARD PRESIDENT MESSAGE 

On behalf of the Stearns Electric Board, I want you to know that the decision to increase rates was not made lightly, but with every effort to be mindful of the impact on members. Our Cooperative’s staff worked diligently to explore all available options, and the Board made the decision only after careful consideration. 

We understand the critical responsibility of providing reliable power. We also recognize that any increase can be a hardship. I want you to know we remain committed to providing the best value for our members and are dedicated to controlling the costs we can. As we move forward, we are confident that we will continue to deliver the reliable service you expect and deserve. 

Sincerely,

Eric Peterson
Board President