Starting January 1, 2026, McLeod Cooperative Power will implement a rate adjustment that affects all members. After reviewing current budgets and financial forecasts, the Cooperative determined that an overall revenue increase of approximately 3% is necessary to continue providing reliable service. The updated rates will be begin on January 1st and be reflected on monthly billing statements beginning in February 2026.
The primary reason for the rate increase is rising costs. About 60% of the Cooperative’s budget is for purchasing power from our wholesale energy providers. Even small fluctuations in wholesale costs have a significant impact on the Cooperative’s finances. Expenses for materials, fuel, and operational needs have also been steadily increasing.
These rate adjustments ensure that McLeod Cooperative Power will remain financially strong in delivering reliable power to our members. Members can find the specific changes to each rate class on page 2. You can also review answers to some more in-depth frequently asked questions on pages 4 & 5.
One of the most notable changes for 2026 is the implementation of a monthly Time of Day Demand (TODD) charge for Rates 2, 5, and 18. This means that starting in 2026, all rate classes will have a demand charge.
Demand charges are a significant cost to our monthly wholesale power bill paid to Great River Energy for the power we purchase for our members’ homes, farms, and businesses. As such, moving forward, every member is being asked to share in this expense by paying a charge for their monthly electrical demand that they generate.
Under previous rates, the only way to lower your bill was to use less electricity overall. With TODD, you’ll also have the chance to save by shifting some usage away from high-demand times. Page 6 includes some tips on how to lower your peak demand.
For additional guidance on managing demand charges or understanding your new rates, members are encouraged to contact McLeod Cooperative Power directly or view the rate information that we have available on our website by clicking on this link.