We know higher electric costs affect household and business budgets, and we do not take a decision to increase rates lightly. As a member-owned, not-for-profit electric cooperative, CORE sets rates to recover the cost of providing safe, reliable electric service and maintaining the system our members depend on.
Continued increases in the cost of providing electric service have prompted CORE’s elected Board of Directors to approve changes to the cooperative’s rates and regulations beginning with January 2027 bills. The changes will result in an average 7.75% rate increase across CORE’s residential, commercial, industrial and other services. The specific impact on each member’s bill will depend on their rate class and how and when they use electricity.
Changes for residential members
Beginning with January 2027 bills:
- Monthly basic service charge: $21.55
- Energy charge: $0.12445 per kilowatt-hour (kWh)
- On-peak demand charge: $5.89
Why are rates changing?
The cost of providing electric service continues to rise. Three areas have the greatest impact:
Electric system costs
CORE must continue to replace aging equipment, expand the system to serve growing communities and invest in improvements that reduce wildfire risk. At the same time, the equipment needed continues to increase in cost.
According to the Cooperative Finance Corporation (CFC) Grid Price Index, electric distribution equipment costs have nearly doubled since 2019, including:
- Underground cable accessories: 143%
- Utility hardware: 135%
- Enclosures, pedestals and pads: 114%
- Overhead conductors: 105%
- Transformers: 96%
- Underground conductors: 95%
- Switching and protection equipment: 90%
Transmission costs
CORE pays other utilities to move electricity from generation resources to our electric system. Those third-party transmission rates have increased more than 30%.
Power supply costs
The cost of the electricity and generating capacity CORE needs to reliably serve members has increased more than 20%.
CORE is transitioning to a more diverse portfolio of power resources while ensuring sufficient generation is available when members need it. Market conditions, resource availability, generation costs and transmission requirements all affect the cost of power supply.
What is CORE doing to control costs?
Many of CORE’s expenses, including purchased power, transmission and electric infrastructure, are affected by factors outside the cooperative’s direct control. That makes careful management of the costs CORE can control especially important.
CORE is:
- Reviewing spending across the organization.
- Streamlining operations and identifying efficiencies.
- Deferring projects when doing so will not compromise safety or reliability.
- Working with multiple power suppliers, contractors and industry partners to maintain competitive costs.
- Pursuing federal funding opportunities that can help offset eligible power supply and infrastructure costs.
We also continue to maintain strong financial performance. Fitch Ratings recently affirmed CORE’s AA- Long-Term Issuer Default Rating with a Stable Outlook. A strong credit rating helps the cooperative borrow at competitive interest rates, reducing financing costs that ultimately become part of the cost of providing electric service.
Why does a not-for-profit cooperative need a financial margin?
Not-for-profit does not mean CORE operates without a financial margin. A reasonable margin helps CORE maintain financial stability, invest in the electric system, meet lender requirements and respond to unexpected events without relying entirely on additional borrowing.
Because CORE is member-owned, those margins remain within the cooperative. They support the electric system and, when financial conditions allow, and the board determines it is appropriate, may be returned to members through capital credits.
Ways to manage your electric bill
We recognize that higher electric costs can be difficult. CORE offers tools and programs that can help.
Monitor your electricity use
Use SmartHub to understand how you use electricity and turn on available usage alerts to identify changes in consumption before your monthly bill arrives.
Reduce your on-peak demand
CORE’s residential on-peak period is 4 p.m. to 8 p.m. When possible, avoid running high-wattage appliances at the same time during those hours. For example, run the oven first and the dryer later instead of operating both simultaneously.
Explore billing options
CORE offers billing options that can help members manage monthly expenses:
- Budget Billing helps reduce seasonal swings by averaging electric costs over time.
- Advance Pay allows members to prepay for electricity and monitor their balance.
Energy assistance
Qualifying members may receive utility bill assistance through state and community programs, including:
- Colorado Low-income Energy Assistance Program (LEAP)
- Energy Outreach Colorado
- Additional programs listed on CORE’s Energy Assistance webpage
CORE is a member-owned, not-for-profit electric cooperative; we work for you. That means being disciplined about the costs we can control and accountable for the investments we make to balance affordability today with the investments necessary to keep the electric system safe, reliable and resilient for the future.