Capital Electric Rates to Rise 8% in Bismarck for 2027
Business operators face a $11 monthly increase as the cooperative adjusts its pricing to manage rising wholesale energy costs.
Updated on Oct. 28, 2026 in Utilities
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Capital Electric Cooperative has proposed an 8% revenue increase effective Jan. 1, 2027, driven by rising wholesale energy costs. The adjustment will result in an approximate $11 monthly bill increase for residential members in Bismarck.
Why it matters
Higher wholesale costs and elevated prices for infrastructure equipment like poles and transformers are necessitating this hike, as the nonprofit cooperative manages expenditures that remain heavily dependent on external power suppliers.
The proposed 8% revenue increase follows a multi-year pattern of annual rate hikes initiated in 2023. Wholesale power costs currently account for 70% of the cooperative's total expenditures, with 60% of those costs triggered by monthly system peak usage.
The players
Capital Electric Cooperative
A nonprofit utility governed by a nine-member board that provides electricity to members in the Bismarck area.
Basin Electric Power Cooperative
A wholesale power generation and transmission cooperative that supplies 90% of the energy for Capital Electric.
Western Area Power Administration
A federal power marketing administration that provides the remaining 10% of Capital Electric's power supply.
The details
Capital Electric purchases 90% of its power from Basin Electric Power Cooperative and 10% from the Western Area Power Administration. To mitigate costs, the co-op uses a four-part rate structure that penalizes high-demand spikes, encouraging members to shift usage to off-peak hours or participate in load control programs to reduce their individual exposure to peak pricing.
Timeline
Annual rate increases have been implemented by the co-op since 2023.
The proposed 8% revenue increase takes effect on Jan. 1, 2027.
Wholesale power costs are projected to plateau and normalize in 2028.
Market Landscape
This proposal highlights the ongoing pressure of the post-COVID-19 inflationary trend for utility infrastructure equipment on regional energy providers. The co-op's move follows a multi-year strategy to align revenue with rising equipment costs and wholesale energy expenses.
Bismarck business operators should prepare for higher overhead by auditing their facility's peak demand usage to determine if enrolling in load control programs could mitigate the $11 monthly increase. Monitoring the cooperative's wholesale cost stabilization projections for 2028 will be critical for long-term utility budget planning.
The takeaway
Operators must optimize energy consumption during off-peak windows to offset structural price increases mandated by the cooperative's current cost-recovery model. Review your current service agreement to evaluate if existing load management tools can absorb the upcoming rate adjustment.
Further reading
Learn more about local power pricing trends in our Utilities section.
Source note: This article includes information reported by Kfyrtv.
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