Editorial: Paul Matthys

The old saying, “The days are long, but the years are short,” couldn’t be more accurate. Here we are in 2026, and where did 2025 go? A friend of mine once said, “A busy life is a good life,” and I think that’s very true. 2025 was a busy year at Cass County Electric, with 20 new hires resulting from natural attrition, as well as power supply resource planning, strategic planning, budgeting, and preparations to serve a large AI data center, specifically Applied Digital near Harwood, North Dakota.

Our primary and most important steps in planning to serve Applied Digital were to ensure that we mitigate risks and do not in any way compromise service reliability or raise electric rates for our legacy or traditional members as a result of serving the data center. We also planned and prepared for the increase in legacy system load, new power generation resources, and a new natural gas pipeline from the Bakken to the Mapleton area (known as the Bakken East pipeline), along with the associated costs of these projects.

Our wholesale power provider, Minnkota Power Cooperative, has adopted an all-of-the-above energy strategy, featuring a robust electric generation portfolio that includes a diverse mix of coal, wind, and hydro resources. In terms of nameplate electric generation capacity, about 58% comes from coal, 33% from wind, 7% from hydroelectric sources, and 2% from other resources. All our resources, including our baseload coal-fired plants, are beginning to age, and we need to plan, prepare, and acquire replacement generation to support our current and future load growth and reliability goals.

We are in a period of transition that will include the development of transmission infrastructure, the addition of new power generation resources, a stance on the Bakken East pipeline, and the decommissioning of some wind resources. All these initiatives are costly and take years of planning for permitting, procurement, and construction. These are some of the drivers that come to mind when you read about or hear me discuss the upward pressure on electric rates.

Part of our strategic planning involves initiatives to reduce the increasing pressure on electric rates. Serving large loads, such as AI data centers, will help keep our rates stable and affordable. We plan to utilize excess revenue, known as margins, from serving Applied Digital as a buffer for our members against wholesale rate increases, potentially providing additional capital credits and stabilizing our operating costs. At the wholesale level, we plan to use margins to help fund capital expenditures related to new generation and transmission projects, which will help reduce pressure on rate increases.

As we plan for new growth and keep pace with the immense demand for electricity, we will continue to prioritize the needs of our legacy members, maintaining stable and affordable rates.

I want to wish you all a happy and safe New Year. Please refer to our website, social media, and Highline Notes for safety tips and advice.