CEO’s Message – July 2025

URE Rate Update

Electric & Natural Gas Rate Adjustments

Anthony Smith headshot
Anthony Smith, CEO/President

At Union Rural Electric Cooperative (URE), we work hard to operate as efficiently as possible to reduce rate impacts. This year, we will be implementing rate adjustments in response to generation and transmission rate changes, inflation, and other external factors, as well as completing the 3-year plan developed to address to the cost increases we have experienced here at URE. These adjustments will allow us to continue operating the business responsibly.

For Rate A, applicable to homes and most small businesses, the generation cost will be increasing from $0.04133 to $0.04198 per kilowatt-hour — that’s a very small increase of about 6/100s of a cent.

The Rate A distribution energy charge will remain stable at $0.03661 for all kWh sold in Rate A, while the monthly distribution service charge will increase from $30 to $35. The minimum charge will remain the same at $35 per month.

For an average home, this will result in an increase of about 2.7% over the course of a year.

For Rate T, applicable 3-phase services, which apply primarily to larger commercial loads, the generation energy charge will decrease from $0.02000 to $0.01680, and the generation demand charge will increase from $8.03 to $9.28225 per kW.

For the distribution services portion of the 3-phase bills, the distribution demand charge will increase from $3.50 to $4.50 per kW, while the distribution energy charge will decrease from $0.01355 to $0.01059 per kWh.

Overall, the Rate T charges mostly offset and will result in more cost emphasis on peak demand (kW) rather than energy (kWh). Here are the natural gas rate changes you’ll see on your August bill:

  • Small Gas Service – Residential and Small Commercial (Natural Gas Rate SGS) – This is the typical service for homes. The natural gas monthly service charge increases from $35 to $40. The per-CCF natural gas charge drops from $0.20 to $0.15. These costs partially offset each other, and the impact varies depending on usage, but an average member’s total annual costs are expected to increase by about 3.6%.
  • Medium Gas Service – Commercial (Rate MGS) – This is for larger gas accounts common at businesses and restaurants. The natural gas monthly service charge increases from $125 to $168. The first 250 CCF will decrease from $0.305 to $0.27, all gas from 251 to 1000 CCF will decrease from $0.255 to $0.22, and any gas sold over 1,000 CCF will decrease from $0.225 to $0.19. These rate changes mostly offset each other.

Though energy costs are rising, electric and natural gas remain great values relative to the continued increases we’ve seen throughout the economy. URE and our partners at Buckeye Power are doing everything we can to ensure our members continue to retain a safe, reliable, and affordable source of energy. Everything we do here at URE is with your benefit in mind because we’re owned by you, our members, and that’s the cooperative difference.