It’s hard to believe that we’re approaching the end of another year. With our busy lives, it seems that each year goes quicker than the last.
Each September, K.C. Electric Association staff begins the process of developing our annual capital and operation budget for the next year. The final budget will not be approved by our board of directors until late December, but I want to let you know that we will likely need to implement a rate increase for some of our rate classes in 2026.
Since I’m drafting this article in October to be published in December, the amount of the rate increase and which rate classes will be affected has not been finalized at this time; I will keep you informed as the budget process progresses.
One of the reasons for the rate increase is due to a 7.5% wholesale electric rate increase that we will be receiving from our power provider Tri-State Generation and Transmission beginning January 1, 2026. Cost of power is the single biggest expense we have each year and is typically 75% of our total expenses. Any increase in our wholesale power cost directly impacts the retail rate we charge you, our member-owners.
The K.C. Electric Board of Directors and employees continue to focus on reducing costs and becoming more efficient, while at the same time ensuring our reliability isn’t negatively impacted and that we continue to remain financially sound. Reliability and affordability are paramount to both our success and the success of you, the member-owners we serve.
In October, the board approved a general retirement of over $1.38 million in capital credits to our members. In addition, K.C. Electric has retired capital credits in excess of $120,000 to estates in 2025 for a total capital credit retirement of over $1.56 million. Over the past five years K.C. has returned over $7.8 million to our members in the form of capital credit checks. We thank you, our members-owners, for your continued support and hope this capital credit retirement will help you this year. Those members who received power from K.C. in 2005 or 2006 should receive their capital credit checks mid to late December.
High school seniors are encouraged to submit a scholarship application to be eligible for one of the many scholarships that K.C. Electric will award in February 2026. For more information on these opportunities visit our website or contact one of our offices.
Looking ahead to 2026, we hope you will share your opinions with us. We recognize that our members have a valuable perspective, and that’s why we continually seek your input.
As we prepare for next year, we look forward to the opportunity to serve you and the greater community. On behalf of the K.C. Electric family, we hope your holidays are indeed merry and bright.
David Churchwell is the General Manager of K.C. Electric Association. KC Electric’s mission is to provide our members with safe, reliable service at the lowest cost, while maintaining an environmentally responsible, accountable, and sustainable operation now and in the future.
