Minnkota board approves 2026 budget and rates

This fall, the Minnkota Board of Directors approved the cooperative’s 2026 capital and operating budgets, along with an average 4.1% rate increase for Class A member cooperatives effective April 1, 2026.

Minnkota President & CEO Mac McLennan said the cooperative continues to feel the effects of supply chain constraints and inflationary pressures. “Everything from transformers to transmission poles to basic hardware now comes with a much higher price tag,” McLennan said. “We’re constantly evaluating how to best allocate resources so we can protect reliability for our members while keeping the cooperative on solid financial footing.”

As a not-for-profit cooperative, Minnkota collects revenue only to cover the cost of providing service and to meet required financial margins. For 2026, the cooperative projects operating revenues of $514.4 million and expenses of $496.5 million, resulting in a planned net margin of$17.9 million.

Minnkota’s 2026 capital budget totals $179.4 million for projects, tools and equipment. Roughly $33 million of that amount will be reimbursed by other entities. The budget reflects the cooperative’s commitment to modernizing aging infrastructure, improving system resilience and preparing for the future.

Approximately half of the capital budget is focused on power delivery investments, including high-voltage infrastructure development, programmatic substation and transmission line rebuilds and continued modernization of grid visibility through automation technologies. About 43% of the capital budget supports power production needs, most of which are dedicated to new generation development. The remainder invests in security, reliability and administrative projects.

“These investments come at a time when costs continue to rise, but they are essential,” McLennan said. “Our employees will be tackling a major slate of projects in 2026 to address aging infrastructure, improve reliability, accommodate load growth and continue to meet the evolving needs of our membership.”

Navigating an era of rapid industry change

Minnkota continues to operate in a period of rapid industry change. Shifts in generation technology, market dynamics and regulatory requirements are adding complexity. The cooperative’s financial health, strengthened by years of disciplined operations and thoughtful planning, remains a crucial asset.

Minnkota maintains strong investment-grade credit ratings and continues to build its Resource Transition Fund, which is designated to address future power supply needs or respond to extreme wholesale energy market conditions.

“We’re grateful for the continued support of our membership,” McLennan said. “The decisions we make today ensure the strength and success of Minnkota for decades to come.”