Capital Electric to Propose 8% Rate Hike in 2027
The Bismarck utility plans an 8% revenue increase starting January 1, 2027, to cover rising wholesale power costs.
Updated on Oct. 28, 2026 in Utilities
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Capital Electric Cooperative has proposed an 8% revenue increase effective January 1, 2027. This change is expected to raise the median monthly residential bill by approximately $11.
Why it matters
The rate adjustment is driven by rising wholesale power costs and increased operational expenditures for equipment like poles and transformers. These costs have been mounting since the COVID-19 pandemic, necessitating the ongoing annual rate increases that began in 2023.
Capital Electric currently receives 90% of its power from Basin Electric Power Cooperative and 10% from the Western Area Power Administration. Monthly system peak usage accounts for 60% of the co-op's total wholesale power costs.
The players
Capital Electric Cooperative
A nonprofit electric utility based in Bismarck, N.D., governed by a nine-member elected board.
Basin Electric Power Cooperative
A wholesale power generation and transmission cooperative that provides 90% of the power purchased by Capital Electric.
Western Area Power Administration
A federal power marketing administration that supplies 10% of the electricity used by Capital Electric.
The details
Members currently paying between $135 and $140 per month may see their bills increase to reflect these wholesale expenses. To mitigate costs, the nonprofit cooperative encourages members to enroll in load control programs or shift usage to off-peak hours.
Timeline
Annual rate increases began in 2023.
The proposed rate increase becomes effective Jan. 1, 2027.
Wholesale power costs are expected to normalize in 2028.
Market Landscape
This proposal reflects the broader challenge of post-COVID-19 inflationary pressure on utility infrastructure maintenance, which has forced many regional cooperatives to adjust their revenue models. The shift positions Capital Electric to stabilize its finances as wholesale costs plateau.
Residents should expect an approximate $11 monthly increase to their electric bills starting in 2027. Members can help manage these costs by shifting heavy electricity usage to off-peak hours or participating in cooperative-managed load control programs.
The takeaway
The cooperative expects wholesale power costs to normalize by 2028, potentially slowing the need for future rate adjustments. Members are encouraged to review their energy consumption habits to minimize the impact of the upcoming price changes.
Further reading
For more information on local utility adjustments, visit Utilities.
Source note: This article includes information reported by Kfyrtv.
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