Wholesale provider Great River Energy increasing rates in 2025

Steele-Waseca Cooperative Electric’s wholesale power provider, Great River Energy (GRE), is budgeting for revenue and expenses of approximately $1.1 billion in 2025, as it allocates funds to operate the business in addition to making necessary investments in the electric system.

As a not-for-profit cooperative, GRE collects enough revenue to cover its costs as well as a margin to operate the business. At the same time, it makes investments in the best interests of its member-owner cooperatives, including Steele-Waseca, over the long term.

Upcoming plans for 2025 include a buildout of high-voltage transmission lines that will reduce congestion on the grid and open pathways for more renewable sources of energy.

“We are entering a period of capital investment, but the end result will be a stronger grid and more reliable electric service,” said Great River Energy Vice President and Chief Financial Officer Michelle Strobel. “These investments are strategic and will result in lower costs over the long term.”

GRE’s margin will increase in 2025 to strengthen financial metrics in order to secure favorable funding terms and interest rates. Like all cooperatives, all of Great River Energy’s collected margins are returned to the membership over time as patronage.

Additionally, Great River Energy’s average 2025 wholesale rate is projected to increase by an average of 5.7% from the 2024 budgeted rate.

“Our rates are competitive when compared to our neighboring utilities and remain well below the weighted regional cost of wholesale electricity,” said Strobel.

 

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