Beartooth Electric Cooperative > BEC Long-Term Power Planning & the Broadwater Hydroelectric Project

BEC Long-Term Power Planning & the Broadwater Hydroelectric Project

Planning Ahead for Reliable, Affordable Power

Beartooth Electric Cooperative’s primary wholesale power contract expires on September 30, 2027. Approximately 93% of BEC’s current power supply must be replaced.

Because wholesale power is the largest single cost of providing electric service, planning must begin years in advance. In 2024, the Board of Trustees began a structured, long-term planning process to reduce future cost uncertainty and avoid sudden rate shocks.

This page provides an overview of what’s happening, what decisions are ahead, and how members can participate.

Review the Full Information

For members who would like to explore more detail, the following materials are available:

What Is Happening Now?

In January 2026, the Montana Department of Natural Resources and Conservation (DNRC) selected Beartooth Electric to negotiate a long-term lease for the Broadwater Hydroelectric Project, a state-owned facility near Toston, Montana.

If negotiations are successful and a lease is approved, Broadwater is expected to supply approximately 50% of BEC’s annual energy needs beginning in October 2027, depending on water conditions and system demand.

Broadwater would not replace all wholesale power purchases. BEC would still secure additional market power to meet full member demand.

Importantly, Broadwater is not the reason for recent or planned rate adjustments. Planning began before this opportunity emerged due to the known expiration of the current wholesale contract.

Why Planning Must Happen Now

Wholesale power and transmission costs represent approximately 35–40% of the cooperative’s total cost of service.

While short-term market prices may appear more favorable today than last year, they still remain much higher than our current contracted rate, and long-term contracts are increasingly difficult to secure. Waiting until 2027 would expose members to:

  • Significant price volatility

  • Limited contract options

  • A potential single, large rate increase

To reduce that risk, the Board implemented:

  • Deferred Revenue Planning

  • Strategic Rate Management

  • Early evaluation of replacement power options

This approach is designed to manage impacts gradually and responsibly rather than react suddenly when the current contract expires.

Key Dates

  • 2024: Long-term planning process begins

  • January 2026: BEC selected by DNRC to negotiate Broadwater lease

  • March 25, 2026: Written member comments due

  • March 31, 2026: Board Meeting – Public Comment & Potential Action

  • October 2027: Current wholesale power contract expires

How Members Can Participate

Member input is important and is formally reviewed by the Board prior to major decisions.

Submit Written Comments by March 25, 2026

Email:
bec@beartoothelectric.com
Subject line: Member Notice – Long-Term Power Supply Contract

Mail:
Beartooth Electric Cooperative, Inc.
Attn: Member Notice – Long-Term Power Supply Contract
PO Box 1110
Red Lodge, MT 59068

Attend the March 31, 2026 Board Meeting
Public comment will be accepted prior to Board discussion.

Our Commitment

Wholesale power planning shapes rates, reliability, and financial stability for years to come. These decisions are not made lightly. The Board and management are committed to:

  • Careful financial analysis

  • Thorough due diligence

  • Transparent communication

  • Meaningful member engagement

We encourage you to review the materials and share your input.