The Cherry Todd Electric Board of Directors met with our rate consultants, Power Systems Engineering, at our February 25, 2025 board meeting to discuss the impact of the January 1, 2025 increases in wholesale power costs from our supplier, Rushmore Electric, Rapid City, SD. After a thorough analysis of the revenue requirements for our cooperative and expected power cost increases forthcoming in the years 2026 and 2027, the Board of Directors approved a 2% overall increase in retail rates for our members.
The 2% increase will be effective on April 1, 2025, and the first billing cycle at the new rates will be on the May 1, 2025 bill. In addition to the wholesale power cost increase, the cost of conductor, poles, hardware and transformers have seen double digit increases over the past 3 years as well. Therefore, the decision by the Board of Directors to make smaller, incremental increases and only as the financial outlook warrants an increase, will protect our members from a future cliff event in power rates.
Cherry Todd Electric is not the only cooperative that is facing increasing cost pressures. All of our neighboring systems have announced and enacted increases in recent months, some as high as 15%.
An additional decision by the Board of Directors at our January 28, 2025, meeting was to eliminate the $5.00 forfeit discount charge if payments are not received in the office by the 15th of the month. This change will become effective with our March 2025 billing cycle. Please note that the notice for non payment by the 15th will no longer be generated or mailed out. The only mailing from the cooperative will be the normal bill generated on the first few days of the month. If payments are not received in the office by the 25th of the month, the normal $20 late fee will be assessed.
The decision to eliminate the $5 charge on the 15th was due to recent changes in postal delivery times and schedules which made paying the bill on time very difficult for most of our rural consumers in both South Dakota and Nebraska. I believe this will be a welcome change for all of our cooperative members.