News > CEO’s Message – July 2026

CEO’s Message – July 2026

Rate Adjustment FAQ

Stearns Electric’s new rates went into effect May 1, 2026. When I announced the 2026 rate adjustment, I shared that Stearns Electric’s Board of Directors approved a 3.3% rate increase. Since May bills were mailed in early June, a few members have contacted us because their monthly bill increased by more than 3.3%. I’d like to address these concerns and, hopefully, provide you with further information about how the new rates affect individual electric bills. 

The 3.3% increase equates to approximately $2.5 million in additional revenue for the Cooperative over a year’s time. It reflects the annual average rate increase Stearns Electric needs across all members and rate classes. 

IMPACT TO MONTHLY BILLS FOR RESIDENTIAL MEMBERS
The 2026 rate adjustment affects members differently based on their energy use and rate class. Residential members, our largest rate class, are served under General Single Phase (GS1). 

The graphs below (also available online at stearnselectric.org/ rate-adjustment-2026) compare monthly bill impacts for members in the GS1 rate (based on energy use) for both summer and non-summer months. Monthly bill amounts are on the left (vertical axis) while energy use levels are along the bottom (horizontal axis). Above each usage level are the estimated rate increase impacts in both dollars and percentages. Taxes, local fees and variable monthly power cost adjustment (PCA) charges/credits are not included. 

WHY IS MY BILL INCREASE HIGHER THAN 3.3%?
Some members may see bill increases greater than the overall 3.3% average for one of the following reasons: 

• An account has lower-than-average monthly energy use. Even though energy charges are low, the total Fixed Charge increased by $5.00 (or 14.6%). Accounts impacted in this scenario are often seasonal properties or apartment dwellings. 
• Summer energy rates are higher compared to non-summer energy rates. 
• Cost-of-Service (COS) study results required different adjustments among rate classes to better align costs with the services provided, ensuring rates remain fair across all member-consumers. 

I realize no one wants to see higher electric bills. Please know that your Cooperative employees and Board members remain committed to managing costs while continuing to provide you with the safe, reliable energy you depend on every day. 

I encourage you to visit stearnselectric.org/rate-adjustment-2026, for additional information regarding our recent rate adjustment. As always, we are here to serve you, so please contact us with any additional questions or concerns you may have. 

Sincerely,

Matt O’Shea
Chief Executive Officer