Utilities District of Western Indiana REMC announces a 2% increase in residential rates in 2026 followed by a 1% increase in 2027 and 2028— a total 4% increase over the next three years.
The rate adjustment is the first increase to UDWI’s base rates since 2014 and has become necessary due to inflation, rising operational costs and the overall cost of power predicted in the coming years. Hoosier Energy, the cooperative’s power supplier, is experiencing a rise in its cost to generate and transmit power. With approximately 65% of UDWI’s expenses coming from purchasing its power from Hoosier Energy, this in turn raises the cooperative’s costs.
“As your cooperative, we were very intentional about keeping this rise in rates as low as possible, only increasing it as much as absolutely necessary to ensure we are providing members with safe, reliable power,” said Shane Smith, CEO of UDWI REMC. “We understand that any rate increase impacts our members. We also continue to offer resources for our members to help manage their bill, such as prepaid metering, charts to monitor their usage, budget billing, and time-of-use rates.”
The 2% rate adjustment will go into effect on April 1, 2026, and UDWI members can expect to see it on their May bill statements. With the increase in rates, members’ electric bills will increase approximately $3 for every 1000 kWh used. The average kWh used by a residence in UDWI’s service territory is 1,100 kWh per month; the kWh for your home can fluctuate based on multiple factors including the size of your residence and the type of heating/cooling systems you use.
In 2025, many electric providers across Indiana have instituted a significant rise in rates. According to the Energy Information Administration, residential rates in Indiana rose nearly 18% last year with many utility providers (both private companies and nonprofits) having announced further rate increases for 2026— ranging from 2.9% to 7.3%.
Compared to the significant rate increases many electric companies have experienced in the last several years, UDWI has been able to keep member rates relatively steady, even decreasing base rates twice during the past eight years. With the electric residential base rate increases throughout Indiana in 2025, UDWI’s rates fell below the state average— measured at total cost per kWh— and will remain below the state average in 2026 even with this increase.
UDWI REMC members that have questions about their electric bill increase should contact the UDWI office at 812-384-4446. To learn more about UDWI, go to its website at www.udwiremc.com. In March, more information on rates will be available under the “Rates and Tariffs” section.
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