"IEC has been doing all it can for years to absorb soaring costs and not pass them on to the member until it was unavoidable." - CEO Todd Schroeder
As costs associated with delivering electric service have continued to soar over the past few years, Indian Electric Cooperative’s Board of Directors has determined a rate change is necessary to ensure stability of the cooperative into the near future.
The board took into consideration the dramatic rise in the cost of materials, equipment and a rate increase from our power supplier.
Effective in April, IEC’s rates will increase across all rate classes an average of 9.8 percent.
“We don’t take rate changes lightly, and we are committed to minimizing the impact of power costs on your household,” IEC CEO Todd Schroeder said. “As a not-for-profit, we strive every day to hold down costs while still providing the quality service members expect.”
Pointing out this is the first time rates have been raised by the cooperative since 2018, Schroeder said IEC has been doing all it can for years to absorb soaring costs and not pass them on to the member until it was unavoidable.
The long-term plan throughout IEC’s 85-year history has been for the co-op to implement rates that are fair and equitable.
The last several years, however, have made it a challenge to mitigate significant hikes across the board.
While virtually all aspects of today’s cost of living continue to go up, IEC prides itself on the value electricity provides. The board of directors continues to focus on maintaining the financial stability of the co-op while delivering power to members at the lowest practical cost.
IEC’s board and staff are dedicated to keeping expenses as low as possible and constantly look at ways to be more efficient. At a cooperative, it is about how to better serve members, not about making profits. Any margins the co-op makes are returned to the members through Capital Credits.
IEC has given back $11.4 million to members in the last three years alone.
“It’s always a dilemma to implement a rate change, and unfortunately it’s one that co-ops across the nation have been saddled with in recent years,” Schroeder said.
“The board studied all factors involved and came to an educated, fiscally responsible decision that will result in the same reliability of service to the members.”
