In May 2026, we informed our members that Prairie Land was undergoing a rate study – a process that evaluates the Cooperative's costs of providing electric service and rates charged for this service. The purpose of this study was to (1) identify the overall revenue needed to cover Prairie Land’s operating expenses and debt obligations while generating enough capital to reinvest in our electrical system and (2) review the cost of providing service to each individual rate class (i.e., Residential, Commercial, Irrigation, etc.). This study, performed by an outside independent rate consultant, has now been completed. On Tuesday, October 27, 2026, at 1 PM, the Board of Trustees will hold a member rate meeting at the Norton office. Action on the retail rates may be taken at that time. The meeting is open to any member who wishes to attend and hear the rate proposal presentation.
The study showed that overall electric rate revenues should be increased by $5.7M, or about 7.3% percent, in 2027. After considering the magnitude of the potential financial impact to our members, Prairie Land’s Board elected to lower the margins to a level still adequate to meet loan covenants set by our lender. Additionally, we will phase in the increase over three years (2027-2029) instead of fully adjusting rates at once in a single year.
After the adjustment to margin requirements, the required revenue increase for 2027 was reduced to $4.8M, or about 6.1%, with an additional $1.3K, or 1.5%, needed in each of 2028 and 2029. If approved by the Board of Trustees, the proposal will become effective on January 1, 2027 (meaning February bill for January usage).
Prairie Land’s last base rate increase was implemented in 2022. Spread over the five years since that increase, the proposed 6.1% adjustment equates to an average of about 1.2% per year. At a time when the prices of many goods and services continue to rise, the infrequency of Prairie Land’s rate changes reflects our ongoing efforts to manage costs while providing the reliable electricity our members depend on every day.
Rate design requires balancing our need to recover sufficient revenue with minimizing the financial impact on our members. While the Cost of Service (COS) study indicates a need for a 6.1% increase in overall rate revenue, the increase will vary by rate class based on the cost of providing service to each class and how each class uses the electric system. Some rate classes will require increase above 6.1%, while others may require little or no increase.
As a not-for-profit cooperative, we must recover the cost of providing electric service and maintain sufficient margins to reinvest in our distribution system. A reliable electric grid benefits us all, and we all share in the investment needed to build and maintain it.
The average residential member would see a $14.39 per month, or 48 cents per day, increase on their bill. Another way to put the overall cost in perspective: an average monthly bill of about $149 works out to roughly $5 per day for electricity - an essential service that powers nearly every aspect of our daily life.
The table below gives an overview of the proposed rate changes by rate class. The percentages shown reflect the monthly bill impact for the average usage customer within the class. However, the effect to each member within each rate class will vary depending on individual consumption.
In addition to the schedules shown below, the Board will also weigh in on miscellaneous recommended tariff language clarifications.
(Hint: click the images below to view a pdf version.)
Beginning in 2028, Residential and General Service Small rates will include a monthly demand charge, while the energy charge will be reduced. To learn more about demand and how demand charges work, visit our demand explainer at https://www.prairielandelectric.com/demand-charges.