Cloverland uses a Cost of Service Study (COSS) to determine whether current rates are sufficient and fairly allocated among member classes. A COSS is a detailed financial and engineering analysis that evaluates how much it truly costs to deliver reliable electric service to residential, commercial, and industrial members.
The study considers factors such as power supply costs, infrastructure investment, operations and maintenance, debt obligations, and required financial benchmarks set by lending partners. It also ensures that each rate class pays its fair share based on how electricity is used and delivered.
When a COSS shows that revenues are no longer keeping pace with rising costs, Cloverland’s Board of Directors reviews the findings and considers rate adjustments. The goal is to maintain financial stability, protect reliability, and plan responsibly for the future.