12/02/2025
Attention - Possible Energy Cost Adjustment Increase for 2026
We want to keep you informed about an important change that is being discussed that will affect electric bills for usage beginning January 1, 2026.
Why are rates possibly increasing?
Starting in 2026, Butler County REC will see a significant increase in the cost of wholesale power—the electricity we purchase before distributing it to you. This increase comes directly from our power suppliers, Basin Electric Power Cooperative and Corn Belt Power Cooperative, and none of these additional dollars stay with Butler County REC or with the City of Fairbank. This is a pass-through cost that is being discussed that could appear on your bill as part of the Energy Cost Adjustment (ECA).
What could this mean for my bill?
This possible increase would affect everyone, because the ECA is charged per kilowatt-hour (kWh). The estimated increase for 2026 is about 9.5% or $0.00881 per kWh, with an additional increase projected in 2027.
Why are wholesale costs rising?
A variety of factors are affecting power supply costs across the industry, including:
• Increased demand
• Federal and environmental policy changes
• Transmission and infrastructure upgrades
• Aging generation assets
• Labor and supply chain costs
When could this take effect?
The new proposed increased ECA would apply to energy used on or after January 1, 2026 (reflected on the bill you receive in February 2026, due March 5, 2026).
Have questions? Please feel free to reach out to your City Council/Mayor or the Office Staff is available Monday-Friday 9 AM - 5 PM. The proposed increase is going to be discussed at the Council Meeting on Monday December 8, 2025, starting at 6:00 PM.