Word From Leadership

At Cass County Electric Cooperative (CCEC), success is built the cooperative way. It reflects the shared commitment of our employees, board of directors, and members working together to provide reliable, affordable electricity while strengthening the communities we serve.

The cooperative had another strong financial year. In 2025, CCEC added 959 new accounts, representing a 1.61% increase. While this was below our five-year average growth rate of 2.77%, it remains above the national average of 1.33% for similar-sized electric cooperatives. Over the past 20 years, CCEC has averaged 1,565 new accounts annually.

Account growth is important, but energy sales are an even stronger indicator of system demand. In 2025, the cooperative sold 1,389,334,687 kilowatt-hours of electricity, a 2.1% increase from 2024. Continued load growth helps maintain rate stability and system reliability by spreading the fixed costs of maintaining the electric system across more energy use.

In 2025, Mother Nature reminded us of the importance of a resilient system. On June 20, powerful storms and tornadoes, including a derecho wind event, caused more than $1 million in damage across much of our rural service territory. Through FEMA assistance, responsible financial planning, and the hard work of our employees, the cooperative responded quickly and recovered from these challenges.

CCEC continues to maintain a strong financial position. In 2025, our equity increased to 49.6%, growing by $5.4 million, while total debt decreased by $7.4 million. Annual electric revenue increased by $6.7 million, or 4.3%, compared to 2024. Our cost to operate the cooperative, known as the distribution adder, was $0.02399 per kilowatt-hour, 45% lower than similar-sized cooperatives nationwide.

Because of another successful year, your board approved the return of $2.75 million in capital credits to members who used electricity in 2005, including estates and early retirements. Capital credit payments are a unique benefit of the cooperative business model and represent the return of margins to our member-owners.

The board of directors continues to provide strong leadership and governance. Director Glenn Mitzel was reelected as chair of the board, Terry Kraft as vice chair, Paul White as secretary, and Kalvin Hoff as treasurer. Directors Paul White, Glenn Mitzel, and Kalvin Hoff were also reelected by the membership in 2025.

Strategic planning with the executive staff and board remains an annual priority as we prepare for the cooperative’s future, with a focus on safety, reliability, technology investments, and planning for large electrical loads.

Our engineering and operations teams continued system maintenance and rebuilding efforts following the 2025 storm damage while investing in technology to improve reliability. One example is FLISR (fault location, isolation, and service restoration) software, which helps detect outages and restore service more quickly. Excluding the June 20 storm, 2025 was an excellent year for reliability, with a system average interruption duration index (SAIDI) of 299.86 minutes and an average service availability index of 99.9429%.

Member service remains a priority. During the year, the cooperative launched a new website platform for load control notifications and enhanced communication tools to keep members informed about projects and system updates.

Cybersecurity continues to be a critical focus. Our internal IT team provides ongoing cybersecurity training, maintains up-to-date security tools, and works with external experts to conduct independent security audits.

Beginning April 1, 2026, CCEC experienced a 4.1% increase in its wholesale power rate from Minnkota Power Cooperative, along with a temporary 1.4 mill surcharge through December 2026. Because of the cooperative’s continued growth and strong financial position, your board approved a plan to absorb the surcharge and more than half of the wholesale rate increase. Through prudent financial management and strong board policies, the cooperative was able to shield members from the full impact of the increase, helping keep electric rates stable and affordable.

Looking ahead, CCEC remains financially strong and well-positioned for future opportunities. We will continue working with Minnkota Power Cooperative to explore carbon capture and storage technologies while preparing for increasing electricity demand from data centers, manufacturing, agriculture, and residential growth. Employee and member safety will remain the cooperative’s top priority.

Providing reliable, affordable electricity while strengthening the communities we serve is the cooperative way. Thank you for your continued support and engagement with your cooperative.