KPC’s 2026 Access Charge Adjustment:
Safeguarding Our Future

As we look ahead to 2026, KPC’s Board of Directors has made a strategic decision to adjust our Access Charge, while keeping kWh and demand charges unchanged. This targeted adjustment is based on careful analysis of our Cost-of-Service Studies, which indicate a need to collect a greater share of our fixed costs directly through the fixed Access Charge. By doing so, we better align our revenue structure with the realities of operating a rural electric cooperative and strengthen our financial foundation for the future.

Several pressures have contributed to the need for this adjustment. First, the cost of power continues to rise, increasing the baseline expenses we must cover to serve our member-owners reliably. In addition, interest expense has grown, reflecting the broader economic environment and the costs associated with maintaining and upgrading our infrastructure. Finally, the sunset of certain contracts has led to a loss of non-operating revenue, removing a source of financial support that previously helped offset costs. While these factors play a role in prompting this adjustment, the most important decision for our board was how we collect the fixed costs essential to running a safe, reliable electric system.

The adjustment for 2026 translates to an effective year-over-year total electric revenue increase of 5.07%. For our Standard Residential Class, the 2026 Access Charge will increase from $49.59 to $61.04. For the average member-owner who uses 1,100 kWh per month, this adjustment translates to a 6.7% increase on their bill, while a member-owner using 2,000 kWh per month will recognize a 4.2% increase. Larger service classes, such as commercial accounts, pay a higher Access Charge than residential users because their cost to serve is greater; however, all Access Charges have been increased proportionally across all rate classes to ensure fairness and consistency in how these essential costs are recovered.

It’s important to understand why collecting fixed costs through a fixed Access Charge is not only prudent, but necessary for a cooperative like KPC. Fixed costs include expenses that do not fluctuate with electricity usage, such as maintaining power lines, substations, and customer service functions. If these costs are recovered primarily through variable charges like kWh or demand rates, the co-op’s financial stability becomes vulnerable to swings in member usage patterns—especially as energy efficiency, distributed generation, and other technologies continue to reshape how member-owners use electricity.

When fixed costs are built into variable electricity rates, any drop in total energy consumption—whether due to conservation, rooftop solar, or changes in weather—can result in the cooperative not collecting enough revenue to cover essential operating costs. This can lead to underfunding of essential maintenance, delayed upgrades, or even financial distress, ultimately impacting service reliability for all members. By placing fixed costs in the Access Charge, KPC ensures these core expenses are covered regardless of fluctuations in usage, providing a more predictable and sustainable revenue stream.

The 2026 Access Charge adjustment is a measured response to evolving financial pressures and industry trends. It is a decision grounded in data, guided by sound principles, and made with the long-term interests of our member-owners in mind. By reinforcing our commitment to collecting fixed costs through a fixed charge, KPC’s Board of Directors has taken a responsible step to ensure we continue providing reliable, affordable service to our community for years to come.

Thank you for your continued support.

For Rate information, visit our Rates page here.

For Access Charge information, visit our Access Charge information page here.