The past five years have been a period of rising costs for everyone – including the electric utility industry. Increased costs are a result of soaring demand for electricity, supply chain challenges, materials shortages and increased labor costs. The impact beyond increased infrastructure costs include more unpredictable timelines.
Roughrider Electric Cooperative works off a multi-year work plan which allows for ample time to order and secure materials from upcoming projects. Along with cooperatives across the country, Roughrider Electric has not been excluded from the supply chain and material challenges. For instance, the cost of transformers and regulators has doubled in the last three years. Additional regulators had a lead time of four months now we order them two years in advance, and those lead times have slipped even further. Uncertainty in the supply chain causes the operations team to step back and reevaluate projects to ensure time and money are efficiently utilized.
Impacts can be seen all the way down to equipment and materials used by crews every day. Bucket trucks have seen price increases, in 2021 they cost around $160,000, and the same bucket truck now costs $221,000 with a three year lead time. The price tag on a common, 40-ft wood utility poles have increase from $507 in 2020 to $812 in 2025.
Due to the increase in price and lead times, we know it is important to plan and adapt to changes, thankfully we have an effective team of operations personnel and engineers who work efficiently to ensure co-op projects continue so we can deliver reliable electric services to our members. We understand that cost for essentially everything is rising, and that puts a strain on everyone. As Roughrider Electric navigates rising industry costs, we work closely with our CEOs and board of directors to explore ways to manage costs for you, our members, while ensuring the reliability of your electric service.