A Letter from CEO Dan Lambert
Members are at the heart of the cooperative business model – you are an owner of the cooperative, not just a customer. It’s important that you are informed and involved in the co-op’s business matters. Your economic participation in Southwest Rural Electric is not only the reason we exist, but it is Cooperative Principle #3.
Just like any home or business, inflation has significantly impacted our cost of doing business. Since SWRE’s last rate adjustment in 2019, the cost of vehicles, materials, insurance, labor, and interest rates have substantially increased.
The board of directors follows a well-defined financial policy which is reviewed and adjusted as needed. SWRE periodically conducts a cost-of-service study with an independent consultant to evaluate our current rate structure and the potential need for a rate adjustment. Both the financial policy and the cost-of-service studies promote long-term planning for the co-op.
C.H. Guernsey & Company, a respected engineering and architectural consulting firm, examined our rates in 2024 to ensure that rates are fair and equitable for all customer classes. The cost-of-service study reviews a year’s worth of operational data including expenses for new infrastructure, maintenance, labor, and financing costs.
Following the study, the SWRE board of directors has approved a recommended adjustment of 6.85%, which will become effective May 1, 2025 and will be reflected on the bill(s) you receive in June 2025. This equates to an approximate $9 per month increase for the residential rate class. An updated rate chart that details changes to each rate class is available online at SWRE.com/Rates.
An adjustment is essential for the co-op to match the rising operational costs it takes to provide service and to ensure we continue providing quality electric service for years to come. This adjustment helps all members understand their equitable share in the cost of service, and it makes sure that no rate class is subsidizing another.
We know that any slight increase to our members puts a strain on your pocketbook, so we want you to know that the decision to adjust rates was done with the utmost care. This is the first rate adjustment in six years, and it equates to about a 1% increase annually—a reflection of our commitment to keep rates affordable. SWRE is a not-for-profit electric cooperative, and we do everything we can to try to minimize the impact of increased costs to our membership without sacrificing system reliability.
The individuals serving on the board of directors are members of the co-op, just like you. Every decision that is made for the co-op takes into consideration the financial health of the cooperative and the impact those decisions will have on our members. I also see first-hand how our employees diligently plan, work efficiently, and are good stewards of our members’ investment into the co-op. The employees who work here are your neighbors and are deeply rooted in the local community.
Our commitment to provide safe, reliable, and affordable power to your home and business remains our top priority just as it has been for the last 88 years. If you have questions about your specific account(s), please give our member service team a call during business hours at 1-800-256-7973, and we’re happy to walk through it with you.
