Energy Wise programs offer great savings
By Marvin Denzer, CEO
Last month, I shared that changes to electric rates are expected in 2026. Since then, our Board and staff have been reviewing options with one goal: to ensure safe, reliable electric service at an affordable cost.
As a not-for-profit cooperative, MVEC’s rates are designed to cover the cost of providing electricity to more than 48,700 member-owners across nine counties, while returning any margin after expenses are paid back to you as Capital Credits.
Our system has grown more complex over time. Membership has increased 40 percent since 2003, and today we operate 30 substations and maintain 4,265 miles of electric distribution line. Read about our 2026 Construction Work Plan, which outlines investments to keep your electric service reliable, here.
Options to Save:
About 43 percent of members lower their bills with Energy Wise programs:
- Free options: Earn bill credits by participating in electric water heating or cooling programs.
- Discounted rate options: Qualify for lower electric rates with the installation of Energy Wise equipment.
Electricity costs rise during peak hours when demand and wholesale prices are the highest. By shifting usage, MVEC reduces the amount of peak-time power we purchase, and members save. Wholesale power is our largest expense, accounting for 70 percent of MVEC’s energy costs. Participation in Energy Wise programs (also called off-peak) helps lower costs for all.
Member Tom Chromy of New Prague shares in the January newsletter how Energy Wise programs have made a real difference for his household. To explore ways to save, check out this page or call MVEC at 952-492-2313 to enroll in one of these money-saving Energy Wise programs.
Wishing you health and happiness in this New Year,
Marvin
Previous Update messages:
2025
Managing costs, preparing for 2026 rate changes
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
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
