Designing an effective rate for our members
Rate design is the key to success for Great River Energy and its members. Unlike investor owned utilities whose primary goal is to maximize shareholder wealth, the primary goal of cooperatives like Great River Energy is cost recovery. Great River Energy’s board of directors has two primary fiduciary responsibilities: to preserve and return members’ contributed capital and to provide safe and reliable power at the lowest cost consistent with cost recovery requirements.
Designing an effective rate structure is becoming more and more challenging as changes across the energy industry are causing costs to rise. Some of the main contributing factors to these rising costs include: increased volatility in fuel costs and wholesale market prices, environmental regulations and mandates, rising construction costs and pending federal legislation related to climate change.
One of the goals of Great River Energy’s rate structure is to provide members and end-use consumers with the knowledge, tools and proper price signals to manage their energy consumption and costs. We do this by providing conservation rebates and incentives, load management programs and time of use energy rates.
We review our rates and rate structure annually to ensure that our cooperative remains a viable business and that we continue to meet the needs of our members.Great River Energy is doing all it can to hold the line on costs.