The Cooperative Advantage: How NIPCO Continues to Deliver Value Amid Rising Costs

Northwest Iowa Power Cooperative (NIPCO) has long dedicated its operations to providing safe, reliable, sustainable wholesale power at competitive prices to seven western Iowa member electric distribution cooperatives. Now, facing an evolving energy landscape, volatile regulations, unpredictable supply chain disruptions, and an uncertain economy, NIPCO confronts challenging economic realities that require strategic planning.

NIPCO’s Board and staff have worked together to identify ways to absorb rising costs and prevent rate shocks. Through revenue deferral policies, operational efficiencies, and conservative budgeting, NIPCO has maintained reliable power supply while serving as a trusted partner to its member cooperatives. The cooperative business model allows NIPCO to spread risk over time and weather economic storms that might challenge other business structures. This approach has enabled a history of stable rates while delivering exceptional value to the NIPCO family of cooperatives. NIPCO has a long history of working with the membership to hold the line on rate increases, demonstrating the cooperative’s commitment to stable rates and its dedication to managing costs year over year.

NIPCO purchases approximately 80% of its power supply from Basin Electric Power Cooperative and 20% from Western Area Power Administration (WAPA), which markets power generated from the Missouri River Dam System.

Multiple pressures now converge as NIPCO looks to maintain its high level of service to its membership. With purchased power comprising nearly 80% of NIPCO’s budget, rate increases from power providers will have a significant impact on 2026 forecasted rates. The upward pressure on purchased power costs from Basin Electric Power Cooperative, NIPCO’s primary power supplier, reflects the need to build new generation and transmission facilities to support existing load and new load growth within the Basin Electric footprint, as well as invest in existing facilities to ensure reliability and operational security. Western Area Power Administration who generates, markets, and delivers hydropower generated from its dams on the Missouri River to customers including NIPCO, has also signaled rate increases due to rising costs to update, operate, and maintain its existing facilities.

Infrastructure maintenance and security costs are rising across all operational areas, while essential materials like poles, wires, and equipment have seen significant price increases. NIPCO continues investing in new transmission lines serving emerging loads like data centers, cryptocurrency operations, and industrial developments throughout the Basin Electric and NIPCO territories.

Despite necessary rate adjustments, electricity remains an exceptional value in today’s economy. Compared to other essential services and commodities, electricity has maintained relatively stable pricing over decades while dramatically improving in reliability and quality. NIPCO has absorbed rising costs without compromising service quality, ensuring members receive outstanding value. Historically, electricity proves among the most stable, valuable services available. While fuel, food, housing, and other essentials experience significant volatility, electric cooperatives consistently deliver predictable, affordable power. This stability anchors economic development and quality of life in western Iowa, enabling confident business planning and effective household budgeting.

The cooperative model provides unique advantages during challenging times. Unlike investor-owned utilities, which generate shareholder profits, NIPCO operates solely for the benefit of its members. This structure enables long-term planning, strategic cost management, and spreading risk over time.

NIPCO remains committed to powering western Iowa’s future. Its value extends beyond keeping the lights on, ensuring communities have reliable and cost-effective power. Even as economy-wide costs rise, cooperative electricity continues to provide value and stability. Any rate adjustment impacting the NIPCO family of cooperatives represents an investment in ongoing reliability, security, and future growth within the system. While understanding member concerns about increases, NIPCO maintains transparency, efficiency, and ongoing communication while exploring every avenue to minimize costs and maintain expected service levels. Any discussions and decisions that impact NIPCO’s rates and services are made by our Board of Directors, elected by the members we serve.

The cooperative model, serving western Iowa for over 75 years, will continue to provide stability, value, and member-focused decision-making as the organization navigates these challenges together. Through careful planning, strategic investments, and the continued strength of the cooperative structure, NIPCO will ensure that electricity remains both reliable and an exceptional value for generations to come.