What is the biggest challenge you have faced?
Every other month we ask our electric co-op manager panel a question, many of which are provided by our readers.
Our panel for 2026 is Matt Haggerty, manager of Park Electric Cooperative in Livingston; Trevor Parke, manager of Vigilante Electric Cooperative in Dillon; and Brad Bauman, manager of Sun River Electric Cooperative in Fairfield
This month’s question is: “What is the biggest challenge you have faced in your career at your cooperative?”
Brad Bauman, Sun River Electric Cooperative
In the utility business, the phrase “send our employees home in as good or better shape than when they came to work” is used often because of the danger of the profession. On August 9, 2024, that was not the case for Lucas Fowler. Lucas lost his life in a tragic accident when a power pole fell over with him on it.
Navigating this event as the general manager was the most challenging event of my career. Supporting the Fowler family, our employee group and the communities affected by the tragedy was a lift. During a time like this you do what your instincts tell you is the right thing, not worrying about how others may be seeing or judging your actions. One leans on their faith and leadership skills, hoping that the answers and actions help offer a level of compassion and calm that allows each to move forward at their own pace.
In most instances we hope to learn from our experiences. This is one event that I would like to not have to experience again, nor get better at how we would respond. One time — was one too many. We trust that Lucas is home and watches over us each day.
Matt Haggerty, Park Electric Cooperative
My biggest challenge has been keeping rates as affordable as possible while nearly all of our operating costs continue to increase. Several factors drive these higher costs.
Wholesale Power: Our largest expense is wholesale power, which has increased every year for the past four years. Initially, we absorbed these increases to protect our members from higher rates. As costs continued to rise, we eventually had to pass a portion of those increases along.
As a not-for-profit electric cooperative, we strive to charge rates that cover the cost of providing service. We ultimately return any margins to our members through capital credits.
Much of the increase in wholesale power costs is related to our power supplier investing in new generation and transmission infrastructure to meet growing demand. The cost of constructing transmission lines has increased from approximately $500,000 per mile to as much as $2 million per mile over the past decade. These higher costs ultimately impact electricity users. It’s important to note that these investments are not driven by data or AI centers; our power provider requires those customers to pay their associated generation and transmission costs.
Materials: The cost of materials to maintain our system has increased by 30 percent to 200 percent. Transformer costs have increased approximately 100 percent to 200 percent, depending on size, while wire, poles and crossarms have also increased.
Equipment: Equipment used by our line crews has increased approximately 30 percent to 50 percent over the past five years.
Property Taxes: Utilities are among the largest taxpayers in many areas of Montana because of the extensive infrastructure required to provide electric service. Higher taxes on substations, poles, wires and other equipment increase operating costs.
Despite these challenges, electricity has remained relatively affordable compared with many other necessities. From 1940 to 2025, the cost of bacon increased approximately 3,210 percent, and gasoline increased 1,622 percent, while electricity increased by approximately 140 percent.
We cannot control many of these costs, but we can control how responsibly we manage them. Our commitment is to operate efficiently and provide safe, reliable electricity at the lowest reasonable cost, while maintaining the financial strength needed to serve our members today and in the future.
Trevor Parke, Vigilante Electric Cooperative
I have been the general manager at Vigilante Electric for a little over 2½ years. For me, the biggest challenge I have faced has been navigating significant changes while continuing to serve our members, support our employees and remain true to our cooperative values.
The world around us is constantly changing. Keeping up with those changes while making meaningful decisions is both challenging and rewarding. Change is never easy, particularly in a cooperative where relationships matter. Our members trust us to provide reliable service and create value for the communities we serve.
One of the most difficult parts of leadership is recognizing that what worked yesterday may not be what we need tomorrow. Our industry continues to evolve, costs increase, technology changes, regulations shift and member expectations grow. At the same time, we must make decisions that protect the long-term strength of the cooperative rather than focusing only on the immediate future. The challenge is finding that balance.
As a general manager, I have learned that communication is critical when navigating change. Everyone impacted by a decision deserves to understand why the change is necessary. The challenges we face rarely belong to one person. The strength of a cooperative comes from its people. When we face difficult circumstances, I have seen employees step up, managers find solutions and trustees offer valuable perspectives. Some of the best ideas have come from simply listening to the people closest to the issue.
Vigilante Electric faced unique challenges long before I became general manager. One ongoing priority has been improving our operations by becoming more efficient and less exposed to the risks we face. Asking questions, seeking input and listening to our employees and members helps us better understand how each decision will affect the people we serve. That does not mean every decision will be perfect. It means we must be willing to learn, adapt and keep moving forward.
Ultimately, the biggest challenge has been learning how to lead when there is uncertainty. Challenges will continue, but by communicating openly, supporting one another and keeping our members at the center of our decisions, we can meet them together.