Throughout this “Behind the Meter” series, we’ve taken a closer look at what goes into your power bill — the cost of generating electricity, delivering it and keeping the system reliable. We’ve also explained why our rate structure includes three parts: the Energy Charge, the Demand Charge and the Access Charge.  

Throughout this process, your Board and staff have taken a data-driven and member-focused approach. We recognize the burden of rising costs and are committed to managing them to minimize the impact on you.

With that in mind, we are making adjustments to our rate structure beginning January 1, 2026. 

Before these changes take effect, let’s walk through our key objectives for these updates, discuss the reasons behind them, and outline what they mean for you.

Aligning rates with the true cost of service
As we’ve discussed, one of our strategic goals is to better align our charges with the true cost of providing power. To maintain fairness and financial stability, we’re adjusting the balance between the three parts of our rates. This means a slightly higher portion of costs will be recovered through the Access Charge and Demand Charge, and a corresponding reduction is being made in the Energy Charge.

On average, residential members can expect a 5% increase in monthly bills (about $10). That’s less than 30 cents per day for the average home. 

Some electric cooperatives in Alabama plan 40 percent rate increases in 2026, with more increases expected in 2027. 

Pioneer Electric remains competitive with other electric providers in the state and nationwide. For context, the U.S. average residential electricity rate is about 17 cents per kilowatt-hour. Under our new structure, the average residential rate for Pioneer Electric members will be 14 cents per kilowatt-hour. 

Responding to rising costs
Like many businesses, Pioneer Electric is experiencing the effects of inflation. Equipment, materials, labor and wholesale power costs have all increased significantly. This rate adjustment helps ensure we can maintain the affordability and reliability our members deserve.

As you’ll see on the next page, the cost of common items used to build and maintain our system have increased substantially since 2020. Yet, Pioneer Electric has minimized this impact on our members.

Giving members more control
Not only do these adjustments better reflect the cost of providing power, but they also give members more control over their energy costs.

It’s important to point out that the impact of any rate adjustment will vary depending on when and how much electricity you use. 

Members who spread out their demand (how much electricity is used at once) will see less of an impact on their Demand Charge. Those with high, concentrated demand peaks may see more noticeable differences.

We also offer three rate options for residential members, allowing you to choose the one that best suits your lifestyle and budget.

There are also a number of billing options that allow members to better control when and how they pay their electric bills.

We’re here to help. Our member services team provides one-on-one assistance, including:

• Reviewing your bill to explain how demand and energy charges work,
• Offering personalized recommendations to reduce costs, and
• Providing information about energy efficiency programs and tools.

Building for future generations
Pioneer Electric has worked to strengthen every part of the cooperative for the benefit of our membership, including:
 

Building financial strength. Since 2012, we have nearly tripled our utility plant equity. That strong financial position ensures the cooperative remains stable and prepared for the future.

Reducing interest costs. By restructuring long-term debt in 2016, Pioneer Electric lowered interest rates from 6.5 percent APR to 3.8 percent APR. That decision has already saved nearly $4 million over 10 years and is projected to save $15 million more through 2041.

Returning money to members. Your Board has made returning capital credits a priority. In November, the cooperative returned $500,000 to members. Since 2013, more than $11 million has been returned through capital credits and tax rebates.

Those accomplishments happened despite significant challenges: the pandemic, two hurricanes in 2020, dramatic spikes in natural gas costs, inflation, supply chain shortages, and declining energy sales. 

Through it all, Pioneer Electric kept the lights on and remained financially secure.

The path forward
The decisions we make reflect our commitment to serving the members who own this cooperative and to providing reliable, affordable power for years to come.

Your cooperative remains focused on reliability, cost control and service you can count on — 99.999 percent of the time. When the lights do go out, crews stand ready 24/7 to restore power as safely and quickly as possible.

Thank you for your continued trust and partnership as a member of Pioneer Electric Cooperative. Together, we have faced challenges and built a stronger, more resilient cooperative. We are grateful for your support, and we look forward to serving you with reliable, affordable power for generations to come.