rising-costs

Navigating Rising Costs to Keep Power Reliable and Affordable

When you flip a light switch, you probably don’t think about the global supply chain we’re navigating behind the scenes to make sure the light turns on. But it affects everything from the cost of materials to how quickly we can get them.

The rising cost of materials and ongoing supply chain pressures are challenges facing every energy provider in the country. These are among the many factors that influence the prices you pay for electricity and our pending request for higher rates in late 2026.

We project that our proposed rates would increase residential customer bills by about 14 percent. This adjustment would allow us to begin to recover $1.7 billion in recent investments made in our local energy grid since 2021. The new rates — still below the level of inflation since 2021 — reflect the higher costs we’ve absorbed to reliably serve our community’s growing energy needs.

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As a capital-intensive business, we’re already accustomed to large investments. But the materials that form the backbone of our system now cost significantly more than they did just a few years ago, particularly as global demand and competition has driven up prices for key commodities and equipment.

Just as an example, copper prices that were $2.72 a pound in 2019 are now $4.90, an 80 percent increase.  Similarly, hot steel prices are 40 percent higher.

Consider substation projects. A large substation transformer we purchased in 2021 for approximately $1.4 million now costs almost $2.5 million — a 77 percent increase. An even larger unit we purchased in 2021 for approximately $4.5 million is now priced at $6 million, reflecting a 35 percent increase.

Cost increases since 2021

Here are a few more examples of cost increases since 2021, which we do need to recover to continue investing in a reliable grid:

  • Switches, lighting and electric wiring apparatus: 42 percent
  • Line materials, such as insulators, connectors and other components: 38 percent
  • Metering equipment: 33 percent
  • Tools and protective gear: 20 percent
  • Wire and cable: 27 percent
  • Wood poles: 88 percent
  • Steel poles: 8.6 percent with prices dropping; prices were 30 percent higher in 2022-2023.

It’s not just about cost — it’s also about time. Many essential parts that once took months to deliver now take a year or more. Large transformers that used to arrive in 50 weeks now take more than twice as long to deliver.

When materials cost more and take longer to arrive, projects to strengthen the grid and serve our community cost more. It’s similar to car repairs, health insurance, or home services: If parts, labor, and materials cost more, the bill goes up, even if the work stays the same.

Affordability is a priority, especially in today’s economic climate. That’s why we’re taking proactive steps:

  • Planning ahead: Our resource planners work year-round with procurement, grid operations, and construction teams to forecast demand, track regional growth, and ensure we have the power supply and inventory needed to meet our community’s energy needs.
  • Buying smarter: We’re working closely with suppliers to communicate our resource needs, identify alternative sources, and refurbish or redeploy equipment where possible.
  • Helping customers save: We offer practical advice to reduce household energy use — including room-by-room tips and do-it-yourself strategies — along with rebates to help lower bills.

We remain committed to delivering reliable energy while managing costs responsibly. By investing in our infrastructure today, we’re building a stronger, more resilient grid for tomorrow.