By Jillian King, Cloverland's Director of Finance
At Cloverland Electric Cooperative, we are committed to providing reliable, affordable power to all our members. To ensure we’re meeting this commitment, we periodically conduct a Cost of Service Study (COSS) — a standard practice for electric cooperatives across the country.
But what exactly is a Cost of Service Study, and why is it important?
A COSS is a detailed analysis that helps us understand the costs associated with delivering electricity to each member class, including residential, commercial and industrial members. It evaluates factors like energy consumption, demand patterns and the infrastructure required to serve different types of members. By analyzing this data, we can allocate costs more accurately, ensuring every member pays their fair share based on their energy usage.
Conducting a COSS is not just about fairness; it’s also about planning for the future. Our cooperative operates on a not-for-profit basis, which means our goal is not to generate profit but to maintain financial stability while providing reliable service. A COSS helps us align our rates with the actual costs of serving our members, ensuring we can continue investing in infrastructure, maintaining grid reliability and meeting evolving energy needs.
This process is fairly standard among electric cooperatives and reflects our dedication to transparency and equity. It’s also a proactive step to address changes in energy consumption patterns, regulatory requirements and the growing adoption of renewable energy.
After we conduct this study, you may see some future adjustments to our rate structure. These changes are designed to ensure the sustainability of our system while keeping rates as fair and equitable as possible. As a member regulated cooperative, all rate changes will be approved by your board of directors.
At Cloverland, your trust and satisfaction are our top priorities. We expect this process to be complete by late 2025. We will continue to keep you informed about the COSS process and any resulting updates.
Together, we can ensure a strong, reliable energy future for our cooperative community.
