The Price Behind Your Power

Hendricks Power believes in keeping you informed—not just about what’s happening today, but about the factors that help shape the future of your electric service. Sharing this information helps explain how HPC plans and keeps reliability at the forefront.

What Impacts Electric Costs?
Like households and businesses, electric cooperatives are influenced by broader economic conditions and essential operating expenses. Key cost drivers include:

Cost of Purchased Power – The cost to buy wholesale electricity is influenced by energy markets, fuel prices, and regional demand.
Fixed Costs – Depreciation costs for infrastructure and equipment, expenses related to consumer accounts and member services (such as billing and account support), and required taxes.
Administrative and General Expenses – Everyday business costs, including technology systems, employee support, and professional services needed to operate efficiently.
Operation and Maintenance Expenses – The cost of operating, maintaining, and repairing poles, lines, substations, and other equipment.
Long-Term Interest – Interest on loans used to fund major infrastructure projects and system improvements.
Operating Margin – Investments in system reliability and funds necessary to maintain financial stability and cover unexpected expenses.

Investing in a Reliable System
Ongoing investments in poles, lines, substations, and technology help ensure safe and reliable service today while preparing the system for future needs. These improvements reduce outages, enhance safety, and support long-term reliability.

Staying Prepared
HPC’s goal is to always keep our members’ best interests at the center of every decision—planning responsibly today to continue providing reliable, affordable service tomorrow.