Some Rural Co-ops Embrace Renewable Energy, Keep Rates Flat

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Estimated reading time: 15 minutes

Why This Matters for Rural Electric Co-ops

Falling costs for wind and solar are creating a real opening for rural co-ops to reduce dependence on fossil fuel-based wholesale power and protect members from price volatility. This article shows how co-ops that have invested in solar-plus-battery storage and demand response programs have managed to hold rates flat even as investor-owned utilities raised theirs.

Co-ops facing G&T contract constraints that limit self-generation will find the G&T relationship dynamics here directly relevant. Leaders can use this article to evaluate whether similar technology investments and member programs could strengthen their own affordability position.

Key Takeaways

Implementation Considerations

• Cost or Funding Requirements: Solar-plus-battery storage projects represent significant capital investment. Smaller co-ops may not have the balance sheet to develop projects independently and may need to pursue shared ownership, PPAs, or G&T-level procurement.
• Regulatory or Governance Considerations: G&T wholesale contracts often cap how much power member co-ops can self-generate. Distribution co-ops should review their contracts and engage their G&T on cap structures before committing to local generation investments.

Notable Examples

• Connexus Energy (MN): Pioneered Minnesota's first large-scale solar-plus-battery storage project. Has kept rates flat for five years through storage, demand response, and smart meter programs.
• Great River Energy (MN): G&T cooperative selling Coal Creek Station coal plant and targeting 80% carbon emissions reduction by 2025. Is studying whether to raise the 5% self-generation cap for member co-ops.
• Wright-Hennepin Cooperative Electric (MN): Built Minnesota's first community solar garden in 2013. Has since expanded member participation options without requiring PUC approval.
• Lake Country Power (MN): Raising rates for the first time in six years due to supply chain costs and equipment price inflation, illustrating pressures co-ops without rate-stabilizing investments may face.

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Estimated reading time: 15 minutes