As energy demands grow, many utilities are facing the reality of rate increases. For Missouri River Energy Services (MRES) members, these increases are largely driven by two main factors: the need for major capital projects to support new generation and transmission infrastructure, and higher market-based power costs.

In 2026, the MRES power supply rate will increase 4.7%. While not ideal, rate increases are a broad trend happening across the utility landscape, including investor-owned utilities (IOUs) and cooperatives.

In response, MRES is working to minimize the impact on members by planning strategically. “On average, MRES expects rates to increase around 4.4% annually for the next few years to help members better anticipate and prepare for the future,” said Chris Olson, MRES vice president and chief financial officer.

According to Olson, the Western Area Power Administration (WAPA) also plays a crucial role in regional rates, and members should be aware of some key adjustments. The drought adder, which was introduced in 2023 at 3.44 mills, has gradually decreased, dropping to 2.46 mills in 2025 and 1.41 mills in 2026. However, the WAPA base rate is increasing. In 2023, the WAPA base rate was 24.8 mills per kilowatt-hour. By 2026, it’s projected to be 30.7 mills, marking a steady climb. Combined with the drought adder reductions, the total rate increase from WAPA will be 6.2% in 2026.

When it comes to wholesale rates, MRES is in a favorable position. As of 2024, MRES’ wholesale rate was 15% lower than 12 regional wholesale utilities that don’t rely on WAPA power and member retail rates are also generally about 15% lower than IOU retail rates. MRES also compares favorably with other municipal utilities and is typically more affordable than most cooperatives in the region. “Additionally, the 2025 power supply rate matches the MRES 2017 rate, which is quite remarkable,” Olson said.

After a 5% decrease in 2022, MRES saw rate increases of 2.7% in 2024 and 5.3% in 2025. These increases follow several years of stable rates for members, and MRES is committed to working closely with its members to minimize the impact of increases. Through strategic planning and gradual rate adjustments, MRES continues to deliver reliable and affordable power for its members, while also continuing to invest in future energy needs.