Navigating a Rate Change: NIPCO's Path Forward

For more than 75 years, Northwest Iowa Power Cooperative has remained dedicated to serving our seven member cooperatives by providing rate stability, supportive policies, and valuable resources to benefit their member-owners and the western Iowa communities they serve. This commitment ensures that the energy delivered to its seven member systems is as dependable as the trust our members place in NIPCO - their generation and transmission power cooperative. It's a long-standing partnership that NIPCO has been proud to cultivate, based on transparency, innovative service, and collaboration.

Today, our cooperative family faces a convergence of challenges that are reshaping the cost of electricity. Rising demand, aging infrastructure, regulatory compliance, and supply chain disruptions are all driving up costs. At the same time, federal policies have accelerated the transition to renewable energy, which, while beneficial for the environment, has led to the early retirement of traditional baseload generation. This shift has made the grid more dependent on weather conditions and increased the risk of shortages during periods of high demand or extreme weather. Meanwhile, the cost of maintaining, securing, and upgrading our transmission network and generation resources continues to climb.

NIPCO Lineman Eric Berkenpas works to repair downed infrastructure during the March 2025 storm in Monona County.

In September, Basin Electric—one of NIPCO's primary power suppliers—authorized a wholesale rate increase of 9.76 percent, effective January 1, 2026. This decision by Basin Electric reflects the need for significant reinvestment in generation and transmission to maintain reliability and prepare for future growth. Over the next decade, Basin Electric plans to invest an estimated $11 billion in capital expenditures, more than doubling its assets. These investments will increase dispatchable generation by 50 percent and expand the transmission system by more than 30 percent, ensuring our electric grid remains resilient and able to meet the needs of our members. Dispatchable generation – coal, natural gas, etc. – is critical to our electric grid because it provides power that can be turned on or off to match demand on the system, keeping power steady and reliable.

The impact of these investments will be felt across Basin Electric's nine-state service area, including right here in western Iowa. By pooling resources and strategically placing new generation assets, Basin Electric can manage costs, improve reliability, and provide energy security for all members. Basin Electric's new natural gas-fired generation projects, like the Pioneer Generation Station and the Bison Generation Station, strengthen the entire cooperative network, benefiting members through improved reliability and cost stability.

Additionally, Western Area Power Administration (WAPA), NIPCO’s other power supplier, has also incorporated a 6.7 percent rate increase from the 2025 rate, citing pressures from increased labor costs and inflationary pressures.

NIPCO's Board of Directors and staff have worked hard to manage costs and minimize the impact of these changes. During NIPCO's October Board Meeting, NIPCO's Board of Directors approved a rate increase that represents a 7.9 percent increase from the 2025 Class A rate. Through revenue deferral policies, operational efficiencies, and conservative budgeting, NIPCO has maintained mostly stable rates over the last decade. However, with nearly eighty percent of our budget dedicated to purchased power, rising generation costs and infrastructure investments by our power providers will place upward pressure on rates in 2026 and beyond.

NIPCO Senior Telecommunications Manager Marc Scheitler.

We understand that rate adjustments are never welcome, but they are necessary to sustain the dependable service our member systems count on. At NIPCO, every decision is made with transparency and a single goal in mind: to provide reliable, secure, and cost-effective power to our members. As we move forward, NIPCO remains committed to open communication, operational efficiency, and long-term planning. We will continue to keep our members informed about the factors driving these changes and the steps we are taking to manage costs and protect their interests.

As we navigate these changes, NIPCO continues to provide several resources to support our members. Our Economic Development and Key Accounts team offers expertise in load control management, energy efficiency rebates, and revolving loan programs, as well as assistance with site development and marketing reimbursement. Operationally, NIPCO supports members with load capacity guidance and expertise, infrastructure planning assistance, and works with members on understanding rates and billing processes. NIPCO's IT and fiber optic resources include comprehensive cybersecurity support, high-speed fiber network access, and personalized troubleshooting and consulting. Communications resources range from website management and content development to photo/video support, technical training, and member engagement programs like Lineman 360 and Energy Trail Tours.

To ensure members are informed and prepared for the upcoming rate change, NIPCO has launched the "Powering What Matters – Together" communications campaign. This initiative was developed to help its member cooperatives build trust and pride in cooperative membership by connecting the seven cooperative principles with seven message pillars, such as member ownership, democratic control, investments in reliability, and honoring the cooperative legacy. The campaign offers a variety of media channels—including email, social media, newsletter articles, bill inserts, web banners, radio and video scripts, and other customizable resources—enabling member cooperatives to reach member-owners and foster understanding without directly referencing the rate change.

Creative examples and messaging materials are available for members to use, edit, and share as needed, ensuring consistent and transparent communication throughout the transition across the entire NIPCO footprint.

NIPCO remains committed to supporting our members with the resources, information, and advocacy they need to navigate this period of change. NIPCO looks forward to continuing to serve as a trusted resource for our family of electric cooperatives for years to come.