Columbia REA Rates Will Increase by 3% in January 2026

Beginning January 1, 2026, Columbia Rural Electric Association (CREA) will implement an average rate increase of 3% across all classifications. Some rate classes will see a bit higher increase, some a bit lower. This decision was not made lightly. Rate increases are never a simple process or an easy conversation to have with you, our members. As a member-owned cooperative, we understand the impact any change in rates has on households and businesses. However, several factors beyond our control have made this adjustment necessary to maintain safe, reliable, and affordable electric service.

The Bonneville Power Administration Rate Increase

Nearly all of Columbia REA’s electricity comes from the Bonneville Power Administration. BPA recently concluded its new rate case, which set wholesale power and transmission rates for the 2026–2028 period. Effective October 1, 2025, BPA’s Tier 1 power rate— the backbone of our supply—rose by approximately 8.9%, while transmission rates increased by nearly 20% to fund critical grid reliability and modernization projects. These increases reflect BPA’s efforts to maintain aging hydroelectric infrastructure, invest in cybersecurity, and meet clean energy mandates. Because wholesale power costs represent the largest portion of Columbia REA’s operating expenses, these changes directly affect what we pay—and ultimately what our members pay—for electricity.

Inflation & Rising Equipment Costs

While overall inflation is sitting right around 3% nationally and is predicted to hover there for the foreseeable future, the cost of utility-specific materials and equipment continues to climb. Over the past 5 years, primary overhead wire costs have surged nearly 97%, pole-mounted transformers by 98%, and power poles by 56%. Even specialized vehicles and fuel have risen about 35%. These are essential components for maintaining and upgrading our electric system. Despite our best efforts to defer purchases and negotiate favorable contracts, the continuing trend of rising costs makes this rate increase unavoidable.

Market Pressures & Regional Trends

The Pacific Northwest faces growing electricity demand driven by population growth, data centers, and the transition to carbon-free energy. Regional forecasts project a 30% increase in load by 2035, requiring significant investment in generation and transmission capacity. Utilities across the region are experiencing similar cost pressures, and retail electricity prices are expected to outpace general inflation through 2026. Columbia REA’s modest 3% adjustment is well below the wholesale increases we face, thanks to careful financial planning and cost control.

“The Columbia REA Board of Directors asked the Management Team a lot of tough questions before approving this rate increase,” notes Doug Case, Manager of Communications and Community Engagement. “There was a real effort to leave no stone unturned in the Board’s commitment to keep this rate increase as low as possible. The Board is always looking at how these decisions affect the membership.”

Looking Ahead

Columbia REA remains committed to delivering safe, reliable, and affordable electricity while being a responsible steward of member resources. Every dollar we spend is carefully evaluated for its impact on reliability and member value, and safety will always be our top priority—whether protecting crews in the field or safeguarding the integrity of the grid. We continue to seek efficiencies, leverage technology, and advocate for fair wholesale rates while investing in infrastructure, training, and cybersecurity to meet future challenges. We encourage members to take advantage of our energy efficiency programs and rebates to help offset rising costs.

More Powerful Together

While we understand that any rate increase is difficult, this adjustment is necessary to maintain the high standards of service you expect and deserve. Columbia REA will move forward with transparency and fiscal responsibility, keeping you informed and engaged as we work together toward a sustainable energy future for our Cooperative and community. For more information, visit our website or contact our Member Services team.