As Pella Cooperative Electric Association begins its 90th year of service, we are reminded that the strength of this organization has always depended on steady leadership and responsible planning. That responsibility continues today.
Many families and businesses are feeling pressure in their own budgets, and we understand that no one wants higher electric bills. Clear communication matters, especially when change is involved.
After careful review, your board of directors has approved a rate increase effective May 1, 2026. This increase represents an overall revenue increase of approximately 7 percent across all rate classes, though the impact will vary depending on rate structure and individual usage.
An overall revenue increase means the cooperative must collect about 7 percent more in total to cover the rising cost of operating and maintaining the electric system. That figure reflects system-wide revenue needs rather than a flat percentage applied equally to every bill. Individual impacts will differ based on service type and usage patterns. A formal rate notice will be mailed in late March, well before the effective date of May 1, outlining details specific to each rate class.
This decision was approached thoughtfully and with long-term stability in mind. The cost of operating and maintaining an electric distribution system has risen steadily in recent years. Materials, equipment, contracted services, technology, and infrastructure investments all carry higher costs than they did even a few years ago. Core distribution components such as poles, transformers, wire, and related construction inputs have increased substantially in price over several years. The accompanying graphic illustrates the broader industry trend behind those sustained cost increases.
Responsible planning means addressing those realities while the cooperative remains financially stable rather than waiting until budgets are stretched and options are limited. Strong performance in any single year does not remove the need for timely increases when costs change. Waiting until reserves are reduced or system maintenance is delayed, which can ultimately affect reliability, would create greater disruption over time. While no increase feels small, addressing cost changes now helps protect members from more corrections later.
Rate decisions are guided by fairness and by the principle that charges should reflect how the system is used while maintaining stability for the cooperative as a whole. Different types of members place different demands on the system. Infrastructure sizing, capacity requirements, and usage patterns vary across homes, farms, and businesses.
Even as rates increase, careful cost management remains constant. The board and management continue to evaluate major projects, review long-term capital plans, and seek competitive pricing for materials and services. Capital improvements are examined closely to ensure projects are necessary and appropriately timed. Equipment replacement decisions are based on safety, reliability, and long-term cost impact. Mitigation efforts continue where outside funding is available to strengthen infrastructure while limiting financial impact on members. These disciplines are part of ongoing oversight, not reactive measures.
Stewardship also means accountability. Directors regularly review financial results, operating plans, and future forecasts to ensure the cooperative remains prepared for both expected needs and unexpected events. The goal is not simply to balance this year’s budget, but to maintain a system strong enough to serve members reliably for decades to come.
The financial report for 2025 is printed in this issue of the newsletter. Transparency remains an important part of cooperative governance, and we encourage members to review that information.
This year marks the 90th Annual Meeting of Pella Cooperative Electric Association. Ninety years ago, members formed this cooperative to ensure dependable electric service when no one else would provide it. That same responsibility to plan for the long term continues today. We invite members to attend on Tuesday, April 7, at Pella Christian High School. The meal will begin at 5:30 p.m., followed by the business meeting at 7:00 p.m. For nine decades, this cooperative has operated on the principle of responsible stewardship. That responsibility continues in 2026. We remain focused on disciplined management, thoughtful planning, and protecting the longterm strength of the electric system you own.