Southwestern Electric Cooperative members will see new opportunities to lower their bills after a rate restructuring discussed during the co-op’s 87th Annual Meeting of Members, held Saturday, Sept. 6, at the American Farm Heritage Museum in Greenville.

Southwestern CEO Bobby Williams opened his remarks by addressing a question he’d been asked repeatedly in recent weeks: “‘I’m served by Southwestern Electric and my neighbor is served by an investor-owned utility. His energy bills have soared. Are mine about to do the same?’ The answer is no.”

Williams said last month Southwestern began fielding calls from customers of investor-owned utilities who wanted to switch providers after their energy bills skyrocketed. Rising costs of generation, transmission and distribution are affecting utilities across the country, he explained.

“Some of our residential members will see a small increase in their bills next year. Some of you won’t see your bills increase at all,” Williams said. “We’re still in the process of restructuring rates, so I can’t offer you numbers. I can tell you by this time next year, you’ll have a lot more control over your energy bill.”

Southwestern recently completed a rate study to evaluate what it costs to provide service to different groups of members. The study revealed that while some groups were paying more than their fair share, others were paying less.

“We’re restructuring our rates to ensure that every group — residential, farm, and commercial — contributes fairly to the financial wellbeing of your cooperative,” Williams said. At the same time, Southwestern is simplifying its rate structure, reducing the number of rate classes from 40 to 12.

In 2026, members will notice adjustments to several line items on their bills. The distribution charge will decline, capacity and transmission costs will increase, and the wholesale power cost adjustment will reset to zero, as it reflects up-to-date expenses.

The residential cost of energy — 3.77 cents per kilowatt-hour — will not change.

Williams outlined two major changes that will give members more control over their energy bills: a Demand Charge and a Time-of-Use Rate.

The Demand Charge is based on the single hour in the month a household uses the most power. “If you run your space heater, dryer, dishwasher, and charge your EV all at 4 p.m., your peak demand goes up, and so does your Demand Charge. Spread those out, and your Demand Charge goes down, and so does your bill,” Williams said. “This isn’t a new cost. It’s already built into your bill. We’ve broken it out so we can reward you for lowering demand. When you lower your demand, you lower our costs, and we’ll pass that savings along to you.”

Time-of-Use Rates vary by when energy is used. Energy costs peak in the afternoon, drop in evenings and early mornings, and fall to their lowest prices overnight. “That means you can save money by doing laundry before bed, running your dishwasher in the morning, and charging your EV overnight,” Williams explained. “We want to give members who choose to use our Time of Use Rate ample opportunity to adjust their habits before we make the rate available,” he said. “Next year, we’ll hold open houses, publish articles and post videos to walk you through ways to save.”

Williams emphasized that the co-op’s proactive approach is designed to shield members from substantial bill increases seen elsewhere.

“We’ll implement our rate restructuring and introduce our Demand Charge and Time of Use rate next year. I don’t have a date for you at this point. We’re sharing this information early because we know you’re concerned about your bill,” he said. “We’re doing everything possible to protect you from the significant increases some investor-owned utility customers are facing.”

He also highlighted broader challenges in the energy market. Capacity costs — the price utilities pay to ensure reliable supply — have risen dramatically. “Two years ago we paid $10 a megawatt day for capacity,” Williams said. “Last year, it was $30. This year it was $666.50. That added $2 million to our costs. That’s $2 million we couldn’t invest in substations, new lines, right-of-way maintenance, or technology. Two million dollars we couldn’t invest in you.”

Williams closed with a call for grassroots advocacy to help balance affordability, reliability, and sustainability in state energy policy.

“Today, more than half the power in our region is generated by gas and coal. In Illinois, legislators are phasing out those resources. That drives up costs and in the same stroke undermines reliability,” Williams said. “Electric cooperatives have promised to provide reliable, affordable, sustainable power to our members. We need lawmakers to recognize the value of that promise, and empower us to keep it.”

He urged members to join Voices for Cooperative Power, a grassroots network of more than one million co-op advocates nationwide. The group informs energy policy, protects cooperative interests, and amplifies the voice of rural communities.

“There’s no cost to sign up, no cost to speak out, no cost to make yourself heard,” Williams said. “But silence comes at great cost. We’re already paying the price.”

Board President Jerry Gaffner touched on the promise of new technology, citing the rising demand for artificial intelligence and opportunities associated with the data centers that make it possible. Gaffner noted that data centers typically locate outside large metro areas — places where cooperatives often provide electric service.

“Co-ops are in a unique position,” he said. “We have the power and the infrastructure that data centers require. Within our service area, we’re already seeing these opportunities and our staff is diligently vetting them.”

Fifteen years ago, ethanol plants drove high loads and revenue for rural systems. Data centers are the modern equivalent. Unlike ethanol, which peaked and faded, AI and cloud computing are projected to grow indefinitely, Gaffner said. That demand can translate into jobs, tax revenue and infrastructure improvements for co-op members, provided projects are vetted with contracts and costs secured in advance.

Gaffner also discussed the vital role easements play in infrastructure improvements. Easements — agreements that allow the cooperative to build and maintain lines on member property — are essential to keeping projects on schedule and affordable. “When members don’t grant easements or don’t return calls, we face delays and cost overruns. That costs all of us money,” he told the crowd.

Southwestern is moving from decades-old blanket easements to more precise, corridor-specific agreements that protect both the cooperative and the landowner. These updated easements ensure crews can access and maintain lines safely while respecting property boundaries.

They also help members avoid paying for the same infrastructure twice. If lines are built in public rights of way and later need to be moved for road projects, Southwestern pays the cost of relocation. Those expenses, which can reach tens of thousands of dollars, are shared among members. If those same lines are on a member’s property, the co-op is reimbursed for relocation costs.

Gaffner closed with an appeal to the membership. “When Southwestern calls about an easement, please return the call. A quick response keeps costs down for you, your neighbors, and every member of this cooperative.”

Following the president’s address, members received election results. Southwestern members elected one member from each of the co-op’s three voting districts to serve on the board of directors. 

From District I, incumbent Sandy Grapperhaus of Collinsville defeated challenger Kevin Kirby of Edwardsville. Grapperhaus received 1,403 votes and 533 members voted for Kirby.

From District II, Amy Marcoot defeated Michael Willman. Marcoot received 1,098 votes while 833 members voted for Willman. Both candidates are from Greenville.

From District III, incumbent Ann Schwarm of Loogootee defeated challenger Heidi Schulte of Vandalia. Schwarm received 1,156 votes while 764 members voted for Schulte.

Each director will serve a three-year term on the board. 

Based in Greenville, Ill., Southwestern Electric Cooperative is a not-for-profit, member-owned utility serving more than 24,500 residential, commercial, agricultural and industrial members in 11 counties along the I-70 corridor between St. Louis, Mo., and Effingham, Ill.

PHOTO CAPTION (photo attachment below): Three members of Southwestern Electric Cooperative were elected to the board of directors during the co-op’s 87th Annual Meeting of Members on Sept. 6 at the American Farm Heritage Museum in Greenville, Ill. From left are Southwestern CEO Bobby Williams with directors Sandy Grapperhaus of Collinsville, Amy Marcoot of Greenville and Ann Schwarm of Loogootee. Each director will serve a three-year term.