Paul Matthys Editorial

The cooperative business model begins with a governance structure built on integrity, safety, accountability, community commitment, and innovation. At Cass County Electric Cooperative, our board of directors is made up of members elected by the membership to oversee finances, set policy and rates, and provide high-level guidance for long-term strategic planning.

CCEC’s nine-member board of directors represents eight geographic districts across our 10-county service territory, along with one at-large district. Directors serve three-year terms, with three directors elected each year. Because this year’s election was uncontested, I would like to recognize and congratulate directors Stacey Ackerman, Terry Kraft (vice chair), Tom Seymour, and Glenn Mitzel (chair), on their continued service.

Among the board’s primary fiduciary responsibilities are setting rates and overseeing the cooperative’s financial health. While CCEC experienced a strong financial year in 2025, including record sales and revenue in December, our wholesale power provider, Minnkota Power Cooperative, faced financial challenges driven primarily by higher purchased power prices in the MISO regional energy market during an extended generation outage. Although Minnkota met its required financial covenants, it fell short of its board-established policy for a 2% margin target. To address this, Minnkota deferred approximately $4.35 million in expenses to 2026 and will recover those costs through a 1.4-mill energy surcharge from April 1 through Dec. 31, 2026. The total impact to CCEC is approximately $1.4 million.

There is good news. Because of CCEC’s continued growth and strong 2025 financial performance, your board of directors approved an executive staff recommendation to defer revenue to absorb both the surcharge and over half of the 4.1% wholesale rate increase that begins April 1, 2026. Through careful financial planning, steady load growth, and sound board-established policies, CCEC is able to absorb these wholesale cost increases without passing them on to members, keeping rates stable and affordable.

Looking ahead, the future remains bright. Our region continues to grow, with new energy-intensive loads such as AI data centers and large dairy operations coming online. We are guided by a dedicated and engaged board of directors as well as supported by an experienced executive team and exceptional employees. Together, we will continue to manage expenses responsibly while delivering the reliable electric service and member-focused support you expect and deserve.