Craighead Electric Cooperative Corporation knows rising costs are affecting families and businesses everywhere. That’s why we don’t take changes to electric rates lightly. We’re a not-for-profit, member-owned cooperative — not a shareholder-owned utility — and we’re committed to transparency about why adjustments are needed and what they mean for our members.
Craighead Electric has not increased retail rates since 2022. During that time, the cooperative has focused on managing costs through operational efficiencies and careful financial planning. However, the costs of providing electric service have risen significantly in recent years.
To ensure rates remain fair and reflect the true cost of service, Craighead Electric commissioned an independent engineering consulting firm, Toth & Associates, to review our rates and conduct a comprehensive cost of service study. That analysis indicated an average 7.2% rate increase is necessary. This recommendation reflects careful review by the cooperative’s leadership and board of directors.
Craighead Electric has submitted the proposed rate changes to the Arkansas Public Service Commission (APSC) for review. If approved, the new rates will take effect for billing statements issued on or after June 1, 2026.
Understanding the Rate Adjustment
There are two primary cost components in providing electric service:
- Wholesale power costs – The electricity purchased from Arkansas Electric Cooperative Corporation (AECC) and delivered to Craighead Electric substations.
- Distribution costs – The expenses involved in delivering electricity from substations to homes, farms, and businesses across our service area.
Wholesale Rate Adjustment – 2.2%
Craighead Electric Cooperative’s wholesale power supplier, Arkansas Electric Cooperative Corporation (AECC), has requested an adjustment to wholesale power rates under Arkansas Act 676 of 2009. The request was filed with the Arkansas Public Service Commission (APSC) in February and would increase wholesale revenues by 5%.
If approved, all funds generated from this adjustment would be applied only to wholesale power costs. AECC has requested the increase to recover higher costs associated with generating and transmitting electricity to Craighead Electric and other electric distribution cooperatives.
Retail Rate Adjustment – 5.0%
Craighead Electric Cooperative’s mission is to provide members with safe, reliable, and affordable electricity. While the cooperative operates as a not-for-profit, it must maintain operating margins to cover system improvements, operating costs, long-term debt, and the retirement of capital credits returned to members — while also maintaining sufficient equity.
The retail rate adjustment request was submitted to the APSC in February under Arkansas Act 821. If approved, it will go into effect for bills issued on or after June 1, 2026.
Example:
The monthly bill for a residential member using 1,000 kWh would increase from $141.31 to $151.59 when factoring in both the retail and wholesale adjustments.
Craighead Electric continually focuses on increasing efficiency and reducing operational costs. The cooperative recognizes that many members are facing challenging times, and no one wants to see rising electric bills. To assist members, Craighead Electric offers programs and practical steps members can take to help reduce their bills through energy management.
For more than 85 years, Craighead Electric has served members with dependable power at the lowest possible cost. The board of directors and employees remain committed to faithfully serving our members and upholding their trust.
Public Notice
Craighead Electric Cooperative Corporation
March 2026
Notice is hereby given that the board of directors of Craighead Electric Cooperative Corporation has approved changes in the following Arkansas rate schedules. The proposed rates are designed to increase overall system revenue from Arkansas consumers by 7.2%, of which 2.2% is the passthrough of the cooperative’s power supplier, Arkansas Electric Cooperative Corporation.
The effect of the rate change on individual consumers will vary depending on the class of service and the amount of electricity used.
If approved, the above proposed rates will become effective for bills rendered on or after June 1, 2026, unless on or before such effective date petitions from ten percent (10%) of the member-consumers have been received by the Arkansas Public Service Commission.
Petitions should be sent to:
Arkansas Public Service Commission
1000 Center Street
Little Rock, Arkansas
Summary of Proposed Rate Changes
Rate Schedule 1: Residential (Farm & Home)
| Description | Existing | Act 821 | Act 676 |
|---|---|---|---|
| Service Availability Charge | $30.00/mo | $31.50/mo | $31.50/mo |
| All kWh | $0.10270 | $0.10784 | $0.11076 |
Rate Schedule 2: General Service Small
| Description | Existing | Act 821 | Act 676 |
|---|---|---|---|
| Service Availability Charge 1Ø | $30.00 | $31.50 | $31.50 |
| Service Availability Charge 3Ø | $52.00 | $54.60 | $54.60 |
| All kWh | $0.10259 | $0.10772 | $0.11059 |
| Interruptible Credit | $0.02261 | $0.02261 | $0.02386 |
Rate Schedule 5: Irrigation – Non Load Control
| Description | Existing | Act 821 | Act 676 |
|---|---|---|---|
| Service Availability 1Ø | $67.25 | $70.60 | $70.60 |
| Service Availability 3Ø | $79.75 | $83.75 | $83.75 |
| HP Demand (Season) | $12.10 | $12.75 | $13.24 |
| All kWh | $0.11789 | $0.12378 | $0.12537 |
Rate Schedule 6: Irrigation – Load Control
| Description | Existing | Act 821 | Act 676 |
|---|---|---|---|
| Service Availability 1Ø | $77.25 | $81.15 | $81.15 |
| Service Availability 3Ø | $89.75 | $94.25 | $94.25 |
| HP Demand (Season) | $4.63 | $4.86 | $4.92 |
| All kWh | $0.10485 | $0.11009 | $0.11168 |
Rate Schedule 8: General Service Medium
| Description | Existing | Act 821 | Act 676 |
|---|---|---|---|
| Service Availability | $80.00 | $84.00 | $84.00 |
| Winter kW | $6.48 | $6.80 | $7.06 |
| Winter kWh | $0.06847 | $0.07189 | $0.07348 |
| Summer kW | $10.73 | $11.27 | $11.53 |
| Summer kWh | $0.06847 | $0.07189 | $0.07348 |
Rate Schedule 9: General Service Large
| Description | Existing | Act 821 | Act 676 |
|---|---|---|---|
| Service Availability | $105.00 | $110.25 | $110.25 |
| Winter kW | $8.17 | $8.58 | $8.88 |
| Winter kWh | $0.06259 | $0.06572 | $0.06731 |
| Summer kW | $14.47 | $15.19 | $15.49 |
| Summer kWh | $0.06259 | $0.06572 | $0.06731 |
Rate Schedule 11: Street & Security Lighting
(LED, HPS, MVL, Metal Halide options updated per schedule — include table if you want full display or upload as PDF attachment for cleaner formatting.)
No longer available for new installations indicated where applicable.
Rate Schedule 12: Cost of Energy Adjustment Rider
| Description | Existing | Act 821 | Act 676 |
|---|---|---|---|
| Base Cost of Energy | $0.048666 | $0.048666 | $0.050252 |
Rate Schedule 19: Large Power – American Railcar Industries, Inc.
| Description | Existing | Act 821 | Act 676 |
|---|---|---|---|
| Billing Demand | $10.69 | $11.22 | $11.62 |
| All kWh | $0.05562 | $0.05840 | $0.05999 |
Rate Schedule 20: Large Power – Optional Industrial (Over 1,200 kW)
| Description | Existing | Act 821 | Act 676 |
|---|---|---|---|
| Service Availability | $140.00 | $147.00 | $147.00 |
| Coincident kW Demand | $12.77 | $12.77 | $13.33 |
| All kW Demand | $4.75 | $4.99 | $4.99 |
| All kWh | $0.04948 | $0.05195 | $0.05354 |