HEC has worked for several years to manage rising expenses internally. They were absorbed in 2020, 2021, 2022, and 2023 when there were no annual rate increases. However, costs have increased substantially for insurance, transformers, poles, wire, vehicles, fuel, labor, contractor services, and other essential equipment. Continuing to absorb these increasing costs would weaken the Cooperative’s financial condition and could ultimately affect its ability to maintain reliable service and invest in future system improvements.