The Access Charge is a fixed charge for each account that accounts for the equipment and service necessary to turn on the lights whenever you want.

• This is a flat monthly rate charged whether or not any electricity is consumed.  It accounts for the infrastructure repairs and maintenance that provide you with access to electricity seven days a week, 24 hours a day, 365 days a year

This is the rate you pay for each kilowatt-hour (kWh) of energy used in the billing period. The amount of energy you consume can vary from month to month and can be impacted by extreme temperatures.

The kWh (energy) charge represents costs associated with wholesale power including energy, transmission, substation and capacity charges. 

• A kilowatt-hour (kWh) is the measurement of electricity used. One kWh is equal to 1,000 watts used continuously for one hour.

  • For example: a 100-watt light bulb burning for 10 hours uses one kWh. The higher the watt rating on electrical devices, the more electricity it uses.

When electricity demand is high and power supply is limited, Beltrami Electric pays more for power. To better align member rates with these higher costs during peak times, BEC implemented a demand charge in 2025.

Demand is the amount of power needed to run everything in your home at a specific time – measured in kilowatts(kW), not kilowatt-hours. BEC pays more for power when members use a lot of electricity at the same time.

Your demand is calculated on the one hour of highest demand during the billing period.

Example: If you run your oven for 1 hour and during that hour you also run your washing machine, dryer, and other devices for the entire hour, they would create a higher demand than normal. The key is to spread out the use of these devices over multiple hours instead of using all at the same time.

Dive Deeper to learn more about demand

You can see your demand on your bill or within SmartHub. You may also contact our office at 218-444-2540 and our member service representatives will be happy to assist you.

You can help lower your demand by spreading out your electricity use—for example, running major appliances like the oven, washer, and dryer at different times instead of all at once. This can help you manage costs while also reducing strain on the grid.

The purchased power adjustment is a direct pass-through of changes in the average cost of purchased wholesale power from Minnkota Power Cooperative. When BEC sets rates, we use the most current forecast for all expenses/costs to run your cooperative, including the average cost for wholesale power. The PPA allows BEC to manage changes to the average cost of wholesale power without changing rates.

Our wholesale power supplier, Minnkota Power Cooperative, increased their rates 4.1%, and implemented an energy surcharge.

When BEC set rates in 2025, we used the most current forecast for all expenses/costs to run your cooperative, including the average cost for wholesale power. We did not foresee, and neither did Minnkota, the increase in wholesale power or the energy surcharge needed in 2026.

As a result, the board of directors has approved a rate change for April 2026.

Costs are continuing to rise on the materials and equipment needed to maintain the infrastructure needed to provide power. Inflation, higher interest rates, and supply chain issues have increased our equipment and material costs since 2018. We continue to purchase and install equipment each year - aging cable, poles that aren't sound anymore, equipment that malfunctions, in addition to refurbishing and maintaining other equipment. It's like a road or a car - if you don't make investments in regular maintenance, it may not run or hold up to normal wear and tear. And then a major storm hits, and the repairs to the infrastructure can quickly mount.

Since 2018…

• The cost of a pad mount transformer – the green box that delivers energy from the distribution line to your home – has increased 140%.
• The cost of underground wire has increased by 63%.
• The cost of a wood pole has increased by 35%.

The most important thing you can do is practice the wise use of electricity. Turning off or unplugging devices when not in use. You can find more energy-saving tips here: 

BEC offers several options to help you manage your electric bill. Some of those services include automatic payment options, budget billing, home energy assessments, off-peak programs and rebates.

Our energy experts can help. Call us at 218-444-2540 for more ways to save on your electric bill.

Electric cooperatives maintain more miles of line per consumer and serve mainly rural areas that have an average of eight consumers per mile, unlike municipal or investor-owned utilities which have higher-density populations of 34 - 48 consumers to share in the cost of infrastructure.

• Beltrami Electric has 6.6 consumers per mile of line
• Otter Tail Power has around 35-40 consumers per mile of line – this means more people to spread the costs across

Another way to look at it:

Picture the electric system like a shared driveway. If six neighbors share the cost of maintaining the long driveway, each pays more than if 35 neighbors share it. The driveway still needs grading, snow removal, and repairs either way. The difference is how many people are contributing. The electric grid works much the same way. 

We understand it can be frustrating to see extra line items on your bill beyond the cost of electricity. These charges—such as Minnesota state sales tax, Beltrami or Hubbard County sales tax, Beltrami County transit sales tax, City of Bemidji or Blackduck sales tax, or even the City of Bemidji franchise fees—are required by law.

Beltrami Electric is responsible for collecting these amounts and passing them directly to the appropriate government agencies. None of these funds remain with your cooperative or contribute to our operating revenue. In other words, we’re simply the “messenger” that collects and transfers these charges as required by state, county, and city regulations.

If you’d like to learn more about how these taxes and fees are set, you can contact the Minnesota Department of Revenue, Beltrami County, the City of Bemidji or the City of Blackduck for more information.