Looking Ahead:
Managing costs, preparing for 2026 rate changes
By Marvin Denzer, CEO
Keeping electricity affordable while ensuring reliable power is important to your cooperative. Like many utilities, MVEC faces rising costs from wholesale power suppliers, government mandates, infrastructure investments, and inflation that has increased equipment prices.
In 2024, we conducted a cost-of-service study with a third-party rate consultant and have been closely monitoring the rising
costs of doing business. As we prepare the 2026 budget, a rate adjustment will be needed to maintain the reliable service you expect. Further details will be shared in upcoming editions of the Electric Eye newsletter.
MVEC is a not-for-profit cooperative, owned by you, our member-owners. Any margins are returned through Capital Credits, and since 1959, $34 million has been returned. Electric rates are established by reviewing data to determine future revenue needs, assigning costs to each class of service, and designing rates that fairly collect revenue to meet obligations and fund the cooperative. Costs are reviewed by your cooperative’s commitment to rate stability centers on the key areas listed below.
Your electric bill has two main components: the cost to generate (wholesale power), which represents about 70% of costs, and the cost to deliver (MVEC’s local cost to get electricity to your home or business), which makes up 30%. It includes the Basic Monthly Service Charge, a fixed fee on all member bills, applied regardless of how much energy is used, which covers the cost of maintaining MVEC’s system, including poles, wires, transformers, meters, other line equipment, and administrative services. This charge was last adjusted in January 2023.
While there’s never an ideal time for rate adjustments, we remain committed to helping you save on your electric bill through Energy Wise programs and SmartHub energy management tools. Your Board of Directors takes rate-setting seriously. As member-owners, they recognize the importance of enhancing reliability while keeping rates competitive and want to ensure fairness for all rate classes.
Cooperatively yours,
Marvin
Previous Update messages:
2025
Thankful for the Power of Community
Minnesota Valley Electric Cooperative is thankful for the opportunity to serve our member-owners and local communities with safe, reliable electric service. You’re not a customer — you’re a valued member-owner. It was great to meet many of you in person during our October Co-op Month Member Meetings.
During the presentation, I shared some of the realities and opportunities facing our cooperative today. Like all utilities, MVEC continues to navigate cost pressures from material, equipment, and wholesale power costs, as well as diverse views on energy policy and the evolving electric grid. Through it all, our commitment remains to deliver safe and reliable power, that’s affordable to every member we serve.
Our meetings featured a panel of MVEC team members from across the cooperative. They introduced themselves, described what they do each day to keep your lights on, and answered questions. We discussed what happens behind the scenes when an outage occurs, why it is important to keep your phone number updated in our system, and ways you can save through Energy Wise® programs and rebates.
Over 43 percent of our member-owners participate in one or more Energy Wise® programs and enjoy an average savings of $233 a year. It’s a great example of how small changes can make a big impact.
We also shared updates on MVEC’s growth and renewable energy systems. Some members choose to have renewables at their home or business. Currently, we have 946 electric vehicles installed to an Energy Wise program or time-of-use-rate, 518 members with solar systems, and 10 with wind turbines. For those interested in a simple way to support clean energy, Renewable Energy Credits (RECs) remain an easy, affordable option.
We talked about one of the most tangible benefits of cooperative membership — Capital Credits. Because MVEC is not-for-profit, any revenue beyond expenses is returned to our member-owners. Last year, MVEC returned $1.78 million, bringing the total returned to members to more than $34 million since 1959.
Enjoy your Thanksgiving with family and friends. We are grateful to have the privilege of delivering the electricity that powers your holidays and everyday lives.
Happy Thanksgiving from all of us at Minnesota Valley Electric!
Marvin
October is Co-op Month, and it’s our privilege to Deliver More to you
October is National Co-op Month, and it’s the perfect time to reflect on what makes Minnesota Valley Electric Cooperative unique.
Every time you turn on a light, you’re powered by more than electricity. You’re powered by purpose because at MVEC, we are more than a utility.
As a member-owned cooperative, we exist to serve you, our friends and neighbors. The decisions that guide your cooperative aren’t made in a distant boardroom. They’re made right here at home by people who live in our communities for the people who call this home. That local connection keeps us focused on what matters most: delivering safe, reliable, and affordable electricity while looking out for the long-term well-being of you, our member-owners.
Being a cooperative also means you are more than a customer — you’re a valued member-owner. That distinction drives us to do more. Whether it’s through money-saving energy programs, investments in technology that improve reliability, or our active role in supporting schools, nonprofits, and local events, MVEC is committed to Delivering More.
This year’s Co-op Month theme, Powered by Purpose, reminds us why we exist. Our purpose is clear: to serve the needs of you, our member-owners, and strengthen the communities we call home. For all of us at MVEC, it truly is a privilege to serve you.
We thank you for your trust and your ownership in this cooperative. Co-op Month is a reminder that together we celebrate more than an organization: we celebrate the power of community.
Cooperatively yours,
Marvin
Strategic planning is more than a business exercise. It is our commitment to keep Minnesota Valley Electric Cooperative focused and dedicated to our member-owners while preparing for the opportunities ahead. From evolving energy markets and emerging technologies to ever-changing regulations and rising member expectations, change and opportunities are constant in the power industry.
As a not-for-profit cooperative, we make every decision with the goal of delivering value to our member-owners. Our 2026–2028 Strategic Plan strengthens alignment between the Board of Directors, member-owners like you, and the MVEC team, ensuring every initiative, investment, and advancement reflects both our mission and your needs.
MVEC’s strategic plan will focus on six key areas:
- Culture and Safety – being a workplace where our Team Members thrive and work safely every day.
- Member Satisfaction and Engagement – listening, responding, and creating stronger connections.
- Reliability, Resiliency, and Sustainability – ensuring reliable power, and embracing emerging technologies, today
and in the future. - Financial Strength – managing financial resources responsibly to keep rates competitive.
- Economic Development and Community – supporting the growth and well-being of the communities we serve.
- Technology and Innovation – harnessing new tools and technologies to improve service, reliability, and efficiency.
Our goal: Prepare MVEC for a vibrant future. Strategic planning gives us the roadmap to enhance and continue to provide you, our member-owners, with the best possible service and reliability. Together, we will make sure MVEC remains strong, adaptable, and ready to deliver.
Cooperatively yours,
Marvin
One of the things I value most about our cooperative is the chance to connect directly with you, our member-owners. This October, in honor of National Co-op Month, you’re invited to join us at one (or more) of our upcoming member meetings and be part of the conversation.
This is a great opportunity to meet you face-to-face, answer your questions, and share what’s happening at your cooperative.
This year’s meetings will take place at:
• Elko-New Market Library — 6–7 p.m. Thursday, Oct. 9
110 J. Roberts Way, Elko-New Market
• Laketown Elementary School — 6–7 p.m. Thursday, Oct. 16
960 Airport Road, Waconia
• Le Center American Legion — 6–7 p.m. Wednesday, Oct. 22
97 S. Park Avenue, Le Center
We’ll have a panel of MVEC team members ready to share insights on power restoration, Capital Credit distribution, renewable energy programs, and our classic money-saving Energy Wise® programs.
I’ll kick off each evening with a few thoughts about what makes MVEC different. As a member-owned, not-for-profit cooperative, we’re here to serve you.
The dollars you pay on your monthly bill are reinvested into maintaining and improving our distribution system, and any excess margins are returned to you as Capital Credits.
We want to answer your questions, hear your ideas, and learn how we can better serve you.
I hope to see you at one of our cooperative get-togethers in October. Your voice matters. This is just another way MVEC strives to Deliver More for our members and communities.
Cooperatively yours,
Marvin
Thanks to member-owner feedback, MVEC achieved a member satisfaction score of 89 on a 100-point scale in our recent email survey.
MVEC uses the American Customer Satisfaction Index (ACSI®), an independent benchmark of customer satisfaction across industries in the U.S. Our score is higher than publicly measured investor-owned, municipal utility, and electric cooperative averages, as reported in the 2025 ACSI® Energy Utility Study.
MVEC’s mission is to create exceptional member experiences while safely providing reliable energy at cost.
As a cooperative, our priority is always our member-owners. MVEC’s Board of Directors, who are member-owners just like you, make decisions on rates, policies, and the services we provide, making sure investments in reliability reflect what matters most to you.
In late April and early May, we surveyed a random selection of members to rate their experiences with MVEC using four industry-standard ACSI® questions:
-
- Overall satisfaction with MVEC
- How well MVEC meets your expectations
- How MVEC compares to your ideal utility
- Likelihood of choosing MVEC if given a choice
We also asked you to rank what is most important to you about MVEC’s service. Members told us reliability is number one, followed closely by affordability. Member service, MVEC responsibility, and technology use rounded out your rankings of importance.
Many of you also shared thoughtful comments — from appreciation for years of reliable power, friendly member service, and money-saving programs, to questions on energy policy, financial assistance, and alternative energy options.
Our exceptional member satisfaction score of 89 is a direct reflection of the MVEC Team’s unwavering dedication and commitment to serving our membership every single day.
Until next month,
Marvin
Engaging with our policymakers
Advocating for your energy future
VP of Operations and Energy Supply Mike Dietz, and
VP of Member Services Terri Bakken met with Minnesota’s
2nd District Representative, Angie Craig, while in Washington, D.C.
MVEC leaders recently traveled to Washington, D.C., to represent our member-owners at the National Rural Electric Cooperative Association (NRECA) legislative conference. We joined thousands of other electric co-ops to speak directly with Minnesota lawmakers about energy policies that impact communities like ours.
Reliable, Affordable Electricity
MVEC is focused on keeping power reliable and affordable. That means advocating for a balanced energy mix — including natural gas, coal, hydro, renewables, and nuclear. We asked policymakers to support:
- Permitting reform that makes it easier to responsibly build essential electric projects
- Balanced environmental regulations that don’t compromise reliability and affordability
- Financing tools for energy infrastructure upgrades
- Federal programs that strengthen the electric grid and support future growth
and House Majority Whip Tom Emmer.
Why It Matters
Rising energy demand means we must plan ahead. Retiring older and reliable generation resources without ready replacements creates risk. That’s why strong public policy and partnerships are critical.
Cooperatives Are Different
We reminded legislators of an important fact: MVEC doesn’t have shareholders; we have member-owners. We are a not-for-profit organization. As we advocate for our member-owners nationally, it is also important to collaborate locally and build partnerships to educate legislators on the cooperative difference. MVEC will keep:
- Planning for our member-owners’ future energy needs
- Advocating for smart federal energy policies
- Working every day to keep your lights on and costs affordable
Until next month,
Marvin
We Deliver More than just electricity
We Deliver the Power of MVEC membership
The nine directors on MVEC’s Board, including me, are member-owners like you. That makes us unique—a cooperative owned and governed by our local members, not outside investors. It’s a business model built to serve our communities and deliver more.
Here’s how MVEC Delivers More for you:
- The Power of Membership
MVEC operates at cost, returning excess revenue to our member-owners as Capital Credits—over $33 million since 1959. - Community Connections
We support local economic development, energy-efficient projects, scholarships, youth programs, and community initiatives like Operation Round Up to strengthen the communities we serve. - Affordable, Reliable Power
By partnering with trusted wholesale energy providers and maintaining a diverse energy mix, we balance affordability, reliability, and sustainability for today and tomorrow. - Options to Personalize Your Account
From convenient traditional and alternative payment options to energy-efficient Energy Wise programs that offer reduced rates, you can tailor your MVEC electric account to suit your budget, lifestyle, and power needs. - A Brighter Future
Innovation and our commitment to care drive us forward, ensuring we safely and reliably meet your energy needs while building a stronger community.
Reliable, affordable electricity matters more than ever, and MVEC is here to Deliver More. Thank you for being a member-owner of our cooperative.
Cooperatively yours,
Deborah Erickson
MVEC Board President
Our Annual Meeting is a time-honored tradition that brings us together as a cooperative community. We invite you to be part of the conversation. This hour-long meeting highlights the investments, projects, and financial outlook of MVEC. All are key topics that affect you as a member-owner.
Registration begins at 6 p.m.
There will be plenty to do before the Annual Meeting starts:
- Register for the meeting and door prizes
- Visit with Board of Director candidates
- Vote onsite if you haven’t already done so by mail
- Talk with our Team on
- Energy Savings
- Member Service
- Drone Technology
- Safety Matters
- Operation Round Up (see ORU grant recipient Can Do Canines)
Important news shared during the meeting
- Cooperative updates from Board President Deborah Erickson, CEO Marvin Denzer, and VP of Finance Randy Erdman, along with behind-the-scenes videos.
- Awarding of $1,500 high school scholarships (funded by Unclaimed Capital Credits) awarded
- Five at-large scholarships will be drawn at the meeting!
- MVEC’s 2025 Youth tour recipient for a leadership trip to Washington D.C. announced
- Board of Director election results
Mark your calendar for Tuesday, April 8, and make the most of your co-op membership by participating in this important event.
We look forward to seeing you there!
Marvin
Engaging with our younger members
We deliver more with safety, education, and opportunity
At MVEC, the Fifth Cooperative Principle—Education, Training, and Information—is a practice we take to heart. We are pleased to offer youth programs that help our local communities thrive by investing in the future. From keeping kids safe to building skills, we are here to show the next generation the cooperative difference.
- Stay Safe with Electricity: PowerTown is a Hands-On Electrical Safety Demo
Safety is a top priority at MVEC. Our PowerTown tabletop demonstration teaches students and community members how to stay safe around electricity. This free, 30-minute, interactive presentation is available for schools, Scout meetings, and other youth events. Plus, on special request, we’ll bring it to after-hours safety events. To learn more, visit www.mvec.net/youth. - Batter Up! Free Minnesota Twins Youth Baseball & Softball Clinics
We have teamed up with the Twins Community Fund and Great River Energy to bring baseball and softball excitement to local youth for the past two summers. These free clinics give kids the skills, teamwork, and confidence they need to shine on and off the field. Watch this newsletter for 2025 details. - $1,500 Scholarships for Member-Owner Students
We’re proud to support students (whose parents or guardians are MVEC members) in furthering their education through our $1,500 scholarship program. Apply online at www.mvec.net/high-school-scholarships by Tuesday, Feb. 18, for one of 15 scholarships. Plus, there’s a second chance to win by attending our Annual Meeting at Jordan High School on Tuesday, April 8, where we’ll draw five more scholarships. - Youth Tour Leadership Experience in Washington, D.C.
The Youth Tour is much more than just a trip to Washington, D.C. It’s a life-changing leadership experience. Participants gain valuable skills, learn the importance of electric cooperatives, make lifelong connections, and come home ready to make a difference. The 2025 Youth Tour deadline is Friday, Mar. 15. Know an outstanding high school sophomore or junior from a member-owner household who would enjoy representing MVEC? Have them apply here: www.mvec.net/youth-tour. - College Student Internship Opportunities
Looking for a stable, rewarding career? Electric cooperatives offer opportunities for everything from line workers and engineers to accountants and communicators. MVEC’s HR staff attend college intern and career fairs to find next-generation talent to help power our future. Every summer, we hire three to five interns who gain hands-on experience in various departments. Find our job and internship opportunities posted here: www.mvec.net/your-cooperative/career-center.
At MVEC, we aim to deliver a stronger tomorrow and a brighter future for the youth in our communities.
Before we look at the top 10 resolutions, I’m pleased to share good news from MVEC: we anticipate no changes to 2025 electric rates. Our mission always remains the same: to create exceptional member experiences while safely providing reliable energy at cost.
At MVEC, we are committed to helping our valued member-owners take charge of your home or business energy use. Here are our Top 10 Resolutions to help you start the year off right:
- Make time for what matters most – Spend quality time with your family and friends. As your local cooperative, we’re here to power the moments that matter most.
- Mark your calendar for April 8, 2025 – Join us for the MVEC Annual Meeting! It’s a great chance to connect, learn about your cooperative, elect your Board of Directors, congratulate high school scholarship winners, and maybe even win a bill credit.
- Save money – Visit www.mvec.net/residential-programs and explore our Energy Wise programs. Are you interested in managing energy use for heating, cooling, electric water heating, and electric vehicle charging costs? Choose from reduced rates or bill credit programs. Rebates are also available for many energy-efficient appliances.
- MVEC offers free payment programs – Sign up for one of MVEC’s convenient and secure bill payment programs to simplify, organize, and automate your payments.
- Create a SmartHub Account – Manage your electric account online or with MVEC’s app. Make payments, check electric usage, receive email or text alerts, and more.
- Try our outage texting option – Does MVEC have your mobile phone number? Go to SmartHub, make sure your phone number is correct, and enable notifications. Then use 855-963-3830 to text OUTAGE or STATUS to stay updated if you experience a service interruption.
- Visit www.mvec.net – Check out cash back rebates, service location applications, account management, and more!
- Receive energy advice – Schedule a visit with an MVEC energy expert to identify even more ways to save on your energy use. Our team is here to help residential and business members maximize efficiency.
- Make your home more efficient – Program your thermostat, change your furnace filter monthly and watch those energy savings add up. Small changes can make a big impact on your utility bills. We have more ideas here: www.mvec.net/energy-tips
- Charge your EV for less – If you drive an electric vehicle, consider joining MVEC’s Energy Wise program to charge your EV and save money every month. Learn more at www.mvec.net/electric-vehicle-program
Wishing you and your families all the best in 2025!
2024
During this holiday season, I want to take a moment to extend warm wishes to you and your family, our valued member-owners. Whether it’s the glow of Christmas lights or the food and conversation at family gatherings, this season is a time of brightness and warmth— courtesy of the energy that powers it all.
Every twinkling light, every heated home, and every holiday display is powered by the electricity we help deliver every day.
We are grateful for MVEC’s role in illuminating not only homes but also the holiday spirit within our communities through programs, such as the Gift of Electricity and Operation Round Up, which give individuals and organizations a helping hand.
Looking back on the past year, I’m grateful for our members and the cooperative spirit. MVEC Team Members met many of you at community events, from kindergarten electric safety demonstrations to city celebrations and parades. We met you in a pumpkin patch and in saluting the U.S. flag at a local veterans event.
Some of our Team Members took community commitment on the road this year by sharing their electrical skills in Guatemala to bring electricity to a village for the first time and in South Carolina to help with the aftermath of Hurricane Helene. We loved hearing your words of support on social media and in person as the cooperative spirit was shown both near and far.
As you gather with friends and family, may your season be filled with peace, joy, and the special glow of the holidays. Wishing you all a bright and healthy New Year, and all the powerful possibilities that lie ahead!
Merry Christmas and Happy New Year
from all of us at Minnesota Valley Electric Cooperative
As we move into November and approach the season of gratitude, I am reminded of how much we have to be thankful for. Being part of a cooperative brings a deep sense of belonging, support, and shared purpose. At the heart of it all is the cooperative spirit — one that values working together, lifting each other up, and ensuring no one is left behind. This spirit is something we can all be grateful for.
On October 1st — the first day of National Cooperative Month, fittingly — MVEC received a call for mutual aid. As we witnessed Hurricane Helene’s devastating impact on the Atlantic Coast, we knew our fellow cooperatives needed help. Within 24 hours, four of our MVEC linemen were on the road to Pickens, South Carolina, equipped with bucket and digger trucks. Our linemen joined others from Wright-Hennepin and McLeod County co-ops, embarking on a 20-hour trek to assist Blue Ridge Electric Cooperative, where 64,000 out of 73,000 members had lost power and 800 poles were downed
While MVEC serves nearly 48,000 members, the conditions in South Carolina made the work incredibly difficult, with each pole replacement taking 2-3 hours. Yet, our team didn’t hesitate. MVEC was one of 18 Minnesota co-ops that answered the call for help, some even coming from as far as South Dakota. This dedication is the power of cooperation — one of the core principles we live by.
When disaster strikes, we don’t stand idly by. Mutual aid is not just an obligation; it’s a cooperative tradition rooted in the values of service and community. Our linemen — Bruce, Kevin, Bill, and Chad — left their families and homes for more than a week to work tirelessly in flooded conditions, restoring power to devastated areas. Their selflessness is a powerful reminder of what we stand for at MVEC: it’s not just about the electricity we provide, but about the people, neighbors, and communities we serve.
As we reflect on this season of Thanksgiving, let us not only give thanks but also embrace the importance of giving back. MVEC exemplifies this through our mutual aid efforts, volunteer work such as highway cleanup, and safety demonstrations. Whether it’s volunteering, lending a hand to a neighbor, or simply being there for those in need, each of us has the opportunity to serve our community in meaningful ways
As we gather with our families this Thanksgiving, let’s take a moment to appreciate the blessings we have and the opportunities we’ve been given to help others. From all of us at MVEC, we wish you and your loved ones a safe and joyful Thanksgiving. And to our entire MVEC team who continue to embrace the spirit of service — thank you for your unwavering commitment. You make us proud every day.
More than 30,000 cooperatives across the U.S. will celebrate National Co-op Month in October. It’s a time to honor the power of co-op membership, whether an electric cooperative, credit union, grocery store, grain elevator, or another type of cooperative.
Electric cooperatives are not-for-profit utilities built by the members/communities they serve. At MVEC, our mission is to create exceptional member experiences while safely providing reliable energy at cost. Your cooperative is focused on serving its member-owners (you) and the surrounding communities. Providing members with value-added services is important to us.
- We offer money-saving options. Nearly 50 percent of our members participate in EnergyWise programs that help you save money by reducing electric consumption. You can receive monthly bill credits or pay up to 50 percent off the general service rate depending on what electric heating, cooling, water heating, or electric vehicle charging programs you participate in. Plus, members can add to their savings with energy-efficiency rebates of $25 to $500, depending on the programs you choose.
- We help you understand your electric usage. Your monthly bill shows your daily usage, and you can analyze it in more detail for personalized information with a free SmartHub account. With SmartHub you can check your daily, monthly, and yearly electric usage; report power outages; choose a bill pay program and make payments; and sign up for email or text alerts. Download the SmartHub app to conduct co-op business from your phone.
- You get to share cooperative margins. MVEC has returned $32 million to member-owners. MVEC has a long history of refunding excess revenue, which we call Capital Credits, to current and former members. This is your share of the cooperative’s margins. In 2024, we returned $1.39 million dollars to members.
- Your satisfaction is important to us! For many years, MVEC has scored high in member satisfaction. We feel this is because we budget dollars wisely, so your electric rates remain competitive. Our full-service website (www.mvec.net) allows you to do business with us any time of the day 24/7. Of course, our main goal is to provide reliable power at cost. The co-op serves over 46,400 meters, and most outages that don’t involve a pole replacement or trip back to the cooperative for needed equipment are resolved within an hour.
- We are committed to community. Beyond the business of electricity, our employees and directors are invested in our local communities. Why? Because we live here, too. That’s why we work hard to support local economic development projects, youth programs and scholarships, local charities, safety demonstrations, and initiatives that make our community a better place to call home.
This October, as we celebrate National Co-op Month and the power of membership, we hope you recognize the many benefits that make MVEC different than other utilities. We are always looking out for you!
Happy Co-op Month,
Marvin
Have you ever stopped to consider the true value you receive from electricity? Last month, we talked about bringing electricity to a Guatemalan village and how something we don’t give a second thought to was life-changing for the 35 families in Las Penas.
Electricity powers our lives 24/7 in ways we often take for granted. We directly or indirectly use electricity almost all the time, whether charging a phone overnight, having hot water ready at any time, or using appliances such as TVs, refrigerators, or ovens—all in a comfortable indoor climate, winter or summer. Even the clothes we wear and other items we purchase are manufactured thanks to electricity.
The average MVEC household uses 1,200 kWh of energy each month. That’s about $5.60 a day. (You can find your daily average on the front of your monthly MVEC bill.) At that cost, you could power your entire home each day for the price of a medium latte.
Consider all the different things we now power compared to the past 50 years: laptops and printers, cell phones, smartwatches and tablets, big screen TVs, gaming consoles, microwaves, air fryers, power tools, and the list goes on. Since the 1970s, the average home went from 1,500 square feet to 2,200 square feet, so we are also cooling and heating more space.
As a member-owned cooperative, MVEC works hard to ensure your costs stay reasonable and that electricity remains a great value for you, our members.
There are some things we can’t control when it comes to electricity costs, such as the weather. And, as a distribution cooperative, we are subject to the costs our wholesale power providers incur for infrastructure improvements, maintenance of transmission lines, and government policies.
In a world increasingly reliant on electricity, it’s crucial that it remains reliable and affordable. At MVEC, it is important for us to ensure electricity continues to be the best value for your hard-earned money.
Thank you for being a valued member of MVEC. Until next month,
Marvin
In our August Electric Eye newsletter, you can read about the experiences our journeyman lineman Wiley Harris had for two weeks in June with 13 other Minnesota and Iowa linemen on an electrification mission trip to Guatemala.
Wiley’s efforts in Guatemala remind me of Minnesota – and much of the country – in the 1930s before President Franklin D. Roosevelt signed the New Deal legislation in 1936. This allowed the federal government to give low-cost loans to farmers who had banded together to create non-profit cooperatives to bring electricity to rural America. Similarly, the Guatemala trip echoed that spirit of bringing power to a difficult-to-reach area.
Geography plays a part – Though cities in the U.S. had electricity since the late 1880s, the rural areas lagged behind because investor-owned utilities didn’t think it was profitable to build infrastructure to serve farms miles apart. The rural, mountainous terrain of Las Penas, Guatemala, the village where Wiley worked, also delayed bringing electricity to the area. Not only is the village far from the local municipal utility that supplies the power, but the span between the three and a half miles of poles needed to connect Jalapa was the longest the U.S. linemen had ever seen. The conditions were rainy and muddy, and often the crew had to park below the mountain and walk a half hour to get to the village.
Making life better – The arrival of rural electricity in the 1930s made life on the farm easier. Farmers benefited from time-saving electrical equipment and could enjoy activities beyond the sunrise to sunset workday. Families could replace kerosene lamps with electric light bulbs. Radios and eventually television sets brought news of the world right into homes. Willie Wiredhand became the mascot of rural electrification – his name suggested electricity was equal to having another hired hand on the farm.
The ceremony in Jalapa on June 16 was life-changing and a very happy occasion. There are now 35 homes, a church, and a school that have the convenience of electricity, which will allow them to enjoy the modern appliances and devices that go along with it.
Equally as important as the flip of the switch was the connection between the Midwest linemen and the people of the village, many of whom pitched in with the heavy lifting or served as interpreters. In the project’s process, two of the seven Cooperative Principles were followed: cooperation among cooperatives and commitment to community which resulted in a connection of people working together to make a small part of the world a better place.
To get the big picture of the Minnesota-Iowa electrification mission trip, I invite you to read Wiley’s first-hand account and see the photos of his experience in our newsletter here.
Thank you for being a member-owner of your long-serving electric cooperative.
Marvin
We all have expectations about something. I bet everyone reading this article has different expectations for their family, work, health, schooling, customer service, and much, much more.
At Minnesota Valley Electric Cooperative, our vision is to be a trusted energy partner loyal to the community — now and for future generations.
Did you know MVEC is dedicated to putting members first? Our team includes 100 team members across various departments, all working together with this vision in mind. While not all of us directly answer phones as frontline member service representatives, everyone at the co-op contributes to member service. Whether climbing a pole to restore power, running a calculator to create budgets that use our members’ money wisely, or visiting homes and businesses to craft a personalized energy plan, we all work together with our membership in mind.
At MVEC you are not a customer, you are more than that — you are a member-owner of the cooperative, and that’s the Cooperative Difference.
Because of our business philosophy, member-owners are first, and they can trust their electric cooperative. As a member-owned, member-governed cooperative, decisions about rates, bylaws, services, and much more are approved by our MVEC Board of Directors, who are also members of the cooperative.
In Quarter 1 this year, MVEC received an ACSI® score of 85, on a 100-point scale.*
MVEC’s score is higher when compared to publicly measured investor-owned and municipal utility scores reported in the syndicated 2024 ACSI Energy Utility Study and places MVEC seven points higher than the average cooperative utility score of 78, 10 points higher than the average municipal utility score of 75, as well as 11 points higher than the investor-owned utilities’ score of 74, per the industry ratings.
Our true priority remains in our mission statement: creating exceptional member experiences while safely providing reliable energy at cost. We thank YOU, our Member-Owners, for our ACSI score. We appreciate your trust and look forward to continuing to earn your satisfaction every day.
Thank you for being a valued member of the MVEC family!
Marvin
*Compared to publicly measured energy utilities in the ACSI® survey of customers rating their own energy utility. Results based on data provided by MVEC, collected over a one-week span in March 2024. ACSI did not regulate the survey administration or sample size. ACSI and its logo are registered trademarks of the American Customer Satisfaction Index LLC. For more about the ACSI, visit www.theacsi.org.
Last month, the Environmental Protection Agency (EPA) approved four major regulations for the electric industry, including a rule to cut power plant emissions. While this is helpful for the environment, it could strain electric reliability.
Stricter standards for existing coal plants and new natural gas plants will require the installation of carbon capture and storage (CCS) technology that is unproven and not yet commercially available.
Utilities nationwide worry these rules will force early closure of reliable energy sources and discourage building new ones, impacting grid stability during rising electricity demand at a time when electric utilities face a surge in demand for electricity due to transportation electrification and the rapid expansion of data centers.
Here’s what the new rules mean:
- Existing coal-fired power plants that plan to operate past the year 2039 must install CCS to capture 90% of emissions by 2032.
- New natural gas plants that operate more than 40% of the time also need to install CCS and capture 90% of their carbon emissions by 2032.
- These standards, and their reliance on unproven CCS technology, will affect electric reliability.
MVEC doesn’t generate electricity at our headquarters in Jordan — we purchase it from our power providers, Great River Energy, Basin Electric Power Cooperative, and Alliant Energy. MVEC’s job is to deliver electricity to your home or business safely. We look to our power providers and our state and national organizations, the Minnesota Rural Electric Association (MREA), and the National Rural Electric Cooperative Association (NRECA), for guidance when it comes to generating power. These organizations have the background, staff, and resources to fully explore how state and federal requirements affect our electric industry.
“The path outlined by the EPA is unlawful, unrealistic, and unachievable,” said Jim Matheson, CEO of the National Rural Electric Cooperative Association. “It undermines electric reliability and poses grave consequences for an already stressed electric grid.”
MVEC’s mission is to create exceptional member experiences, while safely providing reliable energy at cost. Affordably keeping the lights on is important to us. As a cooperative, every decision we make is with our entire membership in mind. Clean energy technologies must be balanced with generation sources that are always available to ensure a safe and reliable electric grid.
Members can do their part to contribute to a cleaner energy future. MVEC offers voluntary programs such as Energy Wise, Green Choice, Pay as you Go, and others that save you and the co-op money as well as lower power demand. Discover these programs at www.mvec.net or give us a call to learn more. We like to say the cleanest and most affordable energy is the energy that is not used. As reliance on renewables increases, prioritizing an adequate supply of always-available power resources is crucial to maintain grid stability and affordability. Fuel diversity remains the best approach to keep the lights on at a price members can afford.
One more very important note: To our local farmers still conducting their spring planting: stay safe out in the fields. Know the height of your equipment and the location of overhead power lines on your property. If your machine or truck contacts a power line, pole, or guy wire, you could become electricity’s path to the ground and become electrocuted if you step out of the cab. Stay in the vehicle and call 911 to have MVEC de-energize the power source.
Make it a great, safe month,
Marvin
By Deb Erickson
MVEC Board President
Each year, MVEC’s Annual Report is a great opportunity for us to gather data, collect our thoughts, and present to you, our member-owners, the accomplishments, financial standing, and progress of your cooperative.
On behalf of the Minnesota Valley Electric Cooperative board and staff, it’s a time to reflect on where we are and where we are going. At the heart of this reflection, we think about ways we can better serve you, the members of the cooperative.
MVEC Team Members recently streamlined its longtime Spirit of the Cooperative statement into a Values Statement which complements the co-op’s Mission and Vision. Our Values describe the standards and principles that drive your organization and people. It declares what MVEC stands for and serves as the blueprint for the co-op’s culture.
MVEC Values may sound simple, but there is substance and meaning behind each word. Though Values traditionally describe how team members work together internally, these words apply to how we serve you, our valued member-owners.
Our Values:
Safe – We prioritize safety in all we do, working together
to ensure it is at the core of MVEC’s culture.
Each day at MVEC begins with the goal of working safely in every situation and making sure everyone goes home to their families safe and sound every single day. The board and staff implement regular safety trainings, consistent messages, linemen and technician tailgate briefings, and an overall attitude of “looking out for one another.” Public safety is always a priority when building our system and when restoring power as quickly yet safely as possible. To ensure safety for the public, our linemen and engineers also conduct safety demonstrations for schools, fire departments, and other organizations.
Innovative – We actively seek out new ideas and implement them
to improve service to each other and the membership.
Our team at MVEC is always looking ahead, exploring ways to innovate and utilize new technologies to enhance our reliability and services. In addition to managing a reliable energy mix, MVEC uses various technologies to keep our local electric system reliable, helping to limit service disruptions and be proactive on outage response times. Advanced metering infrastructure technology, also known as AMI, enables two-way communication between the co-op and our members by using your phone number when you call in an outage. In the summer of 2023, we used commercial drones for the first time to conduct overhead line inspections in two substation areas. SmartHub technology gives you free account and payment access on your phone or computer 24/7/365.
Accountable – We work well together and look out for one another,
united in building courage and confidence as a Team.
We are accountable to our members in providing reliable energy at cost. One critical component of reliable power is the mix of energy resources used to generate the electricity that keeps the lights on across the Minnesota Valley service area. You may not realize it, but MVEC doesn’t generate electricity. Instead, we purchase it from our energy providers: Great River Energy, Basin Power Electric Cooperative, and Alliant Energy. From their transmission lines to our local substations, we distribute power to homes and businesses throughout our local communities.
We are increasingly using more electricity generated from renewable energy sources, but still depend on a diverse energy mix to ensure reliable power is available to our members day after day. As a not-for-profit cooperative, we are also accountable to our members in returning Capital Credits – margins left over after all operating expenses are paid.
Connected – We relate to one another by engaging with each other,
the members, and the communities in which we live and serve.
We like the double meaning of the word, Connected. It not only has electric connotations, but it also highlights our commitment to local communities. Operational RoundUp, high school scholarships, Washington, D.C. Youth Tour, and free electrical safety demonstrations are all ways we give back. And, we are connected as a team while sponsoring community events and parades, county fairs, and other local celebrations. We are committed to enhancing our local communities when we can because we live and work here, too.
The tagline “Cooperatively since 1937” concludes our Values. This is a nod to the rich history and deep roots MVEC has in our communities. Our farmer-founders saw a need in the 1930s to bring electricity to an underserved area and worked hard to obtain and maintain it. Today, we continue to appreciate this rich history by keeping in mind you, our member-owners, in every decision we make.
You can learn more about MVEC’s 2023 accomplishments by reading the rest of this report and by attending our Annual Meeting at 7 p.m. Tuesday, April 9, at Jordan High School. As we turn our focus to the rest of the year ahead, MVEC will continue working to provide the reliable, affordable electricity you expect and deserve –– for today and tomorrow.
I look forward to seeing you at the 87th Annual Meeting on April 9 at Jordan High School.
Deb
There’s never a dull moment around the cooperative. But the post-holiday season is an especially busy time of year as we finish financial audits for 2023 and look ahead to plans for 2024. Here are five timely reasons why it’s great to be a member of Minnesota Valley Electric Cooperative:
- You have a say in co-op matters. Ballots have been mailed to all members for the Director election taking place at MVEC’s Annual Meeting. You get to select the Director who will represent your district in making decisions that impact you as a member-owner. I encourage you to study the candidate biographies and goals that were included in your ballot packet. Be sure to mail your ballot back to us by April 2.
- Capital Credit Retirements Announced. If you were a member of the cooperative during the selected years, you will notice a credit on your March electric bill called Capital Credits. Nearly $1.39 million is being returned in 2024. You can read more about that in a full article in the Electric Eye.
- Our Annual Meeting will be on Tuesday, April 9, at Jordan High School, 600 Sunset Drive. Doors open at 6:30 p.m. for onsite voting, and the hour-long business meeting begins at 7 p.m. The Annual Meeting is our opportunity to engage with members face to face. We will share MVEC’s successes and financial standing; we will award 18 $1,500 scholarships to member-high school seniors, including three “second chance” scholarships that will be drawn from seniors who attend the meeting with a parent; and we will introduce a local high schooler who will represent MVEC at the Washington, D.C. Youth Tour in June. The member-owners attending the Annual Meeting will have the opportunity to win one of five $100 bill credits that will be drawn at the conclusion of the meeting. Please bring the barcode from your ballot packet for quick and easy registration.
- In March, MVEC’s Board of Directors has the opportunity to attend the Minnesota Rural Electric Association’s Annual Meeting and participate in the Legislative Day at the State Capitol. Rural electric cooperatives meet with respective policymakers with the unified message of providing safe, affordable, and reliable power to our members. It is important that we represent the voice of the cooperative to those who make the laws and regulations on the state and national levels.
While renewable energy use is increasing, we will still depend on traditional forms of energy to keep power flowing reliably to homes and businesses. Solar and wind energy are referred to as “intermittent” power since the sun does not always shine and the wind does not always blow. This fact coupled with the growing demand for renewables creates its own challenges. That’s why there is real value in maintaining a balanced mixture of power generation types to ensure reliability and affordability and meet the growing demand for electricity.
- Programs and services are designed for you with various options in mind. Though the above-mentioned items are currently at top of mind, that doesn’t mean the customary work of the co-op is less important. MVEC’s team is continually looking at innovative programs and service offerings. We understand that having choices is important from money-saving programs to payment options, rebate offerings, and having various communication options to stay connected with you, our member-owners.
As a co-op, one of our top priorities is to enhance the quality of life for our members of all types – residential, agricultural, and commercial. We appreciate serving our members and supporting local communities, and just like you, want to see our local communities continue to thrive.
Next month, we will have a special edition of the April Electric Eye that serves as our 2023 Annual Report, as well as a column from Board President Deborah Erickson.
MVEC appreciates the opportunity to serve you,
Marvin Denzer, CEO
Tuesday, April 9, has a big red circle on MVEC’s calendar because that is the date of our 87th Annual Meeting. A lot of work goes into this meeting, but we are happy to do it for you, the member-owners we proudly serve.
I always look forward to our Annual Meeting evening because it’s a great opportunity for me, the Board of Directors, and our staff to talk with members and hear what’s on your mind.
If you have not yet attended an Annual Meeting, we invite you to attend this year at Jordan High School. On behalf of our entire Board of Directors, Board President Deborah Erickson will host the approximately hour-long event. We will have informative video reports from each area of the co-op to give updates about the investments and projects of the past year. Randy Erdman, Vice President of Finance, will give an update on MVEC’s financial condition, which includes operating margins and Capital Credits – money returned to you, our member-owners.
We also will introduce our 2024 Washington, D.C., Youth Tour participant and will present 18 – $1,500 high school scholarships (funded by Unclaimed Capital Credits) – including three scholarships to be drawn from registered high school seniors attending the meeting with their parents.
You have a say
Spending time with you and hearing your take on MVEC’s energy future is important to us because everything we do is planned with members in mind. The energy landscape is shifting rapidly, and we anticipate you may have many questions. Member needs and changing technology impact nearly every aspect of how we manage and deliver energy to your home, farm, or business.
Learning about your expectations and energy needs helps our planning process as we strive to meet the long-term needs of all MVEC members. You may be wondering if your opinion really makes a difference, and yes, it does. Your voice matters – it shapes our priorities and guides decisions. Hearing perspectives from our membership (that’s everyone who pays for electric service from MVEC) helps our staff and board set priorities for the co-op.
The Annual Meeting is time to vote for the Board of Directors
Our Board is comprised of nine members from three districts who live and work right here in our local service area, so they are in a good position to know about MVEC needs, investments, and rates – as those monetary decisions affect their neighbors and themselves personally as well. Each year, one seat from each of our three voting districts is up for election.
MVEC is not an ordinary utility company. We’re a co-op, and our business model is meant to serve the members and the community in which we live. Our Mission is to create exceptional member experiences, while safely providing reliable energy at cost. As a not-for-profit cooperative, we are driven by a commitment to our community as Concern for Community is one of our seven cooperative principles. It’s also why any margins over operating at cost are returned to members as Capital Credits – the principle of Economic Participation.
So, mark Tuesday, April 9, on your calendar and exercise another benefit of your co-op membership – Democratic Member Control. We look forward to seeing you. Your attendance means a lot to us.
Until next month,
Marvin
As the MVEC Board of Directors and Executive Team ended 2023 with annual budget and project reviews, it’s time to evaluate the challenges and opportunities that lie ahead for MVEC in 2024 and beyond. We are a member-owned cooperative, which means we’re different from traditional investor-owned utilities and municipals. Why are we different? You, our member-owners, elect board directors to represent the entire membership in making decisions and we are a not-for-profit organization. We are here for you, our member-owners, plain and simple.
Wholesale power costs are 70% of your electric bill
One of MVEC’s biggest expenses is to purchase wholesale power, which is approximately 70 percent of your electric bill. This is significant for you and MVEC, and it is the reason we’re always looking for ways to be more efficient and strategic with our energy resource portfolio, which includes diversification in purchasing energy from three different wholesale power providers.
A mile of power line costs 20 percent more to build than a year ago
The recent spike in material and equipment costs hasn’t made things any easier, but we’re working hard to manage them. Material and equipment to build and maintain MVEC’s electric infrastructure are seeing a 20 percent increase in cost. This means building one mile of power line costs 20 percent more than it did one year ago. Electric cooperatives typically have a less dense user base to spread costs across. With 47,000 members and 4,250 miles of power line, MVEC averages 11 members per mile compared to an investor-owned utility such as Xcel Energy which has an estimated 160 customers per mile of their power lines. As a co-op of our size, it can be challenging to absorb rising expenses, but we’re committed to doing everything we can to keep rates affordable while improving reliability for you, our member-owners.
Cost of service study: A focus on fairness and maintaining balance
In 2024, we will conduct a comprehensive cost-of-service study to ensure all member rate classes are fair and equitable. This study helps us understand the true cost of providing electricity to different rate classes so that no one group is paying more to subsidize another. If the results of the study show it is necessary to adjust rates, we will fully communicate and explain the reasons for the changes to you.
New technologies and mandates: Changing the way we deliver power
The rapid adoption of new technologies like solar panels, wind turbines, batteries, and electric vehicles is changing the way we deliver power. These advancements are exciting, but they also introduce new challenges and require us to adjust MVEC’s infrastructure and power portfolio. As we work to comply with new state and federal mandates, the affordability and reliability of your electric service remain our top priorities.
We are your trusted energy advisor
Read our January newsletter, and you will see we offer a variety of options that meet the unique needs of your household or business. You have choices of energy-saving programs, free payment options, rebates, and more that can mitigate the rate you pay. At MVEC, we believe our members are the heart of our co-op. That’s why your voice matters. We encourage you to stay engaged and informed as we navigate this exciting and evolving energy landscape together. That’s our promise to you as we begin a new year.
Have a Safe, Healthy, and Prosperous New Year,
Marvin