Board Proposes Adding a Demand Charge to Victory Rates

At Victory Electric, we know you work hard to provide a good life for your family and make a difference in the communities you call home. We also understand that no matter how hard you work, you may be struggling to keep up with costs for essential products and services that seem to be rising all around you. 

Victory Electric has also felt the impact of rapidly rising costs, which brings me to important news for our members: The Victory Electric Board of Trustees has decided to move forward with proposed rate changes and a new rate structure. Victory members have not had an energy rate increase for nearly 10 years, thanks to the board’s careful oversight and efforts to minimize costs that are under our control. But a rate change is now necessary to ensure that Victory will remain financially healthy, now and in the future. 

After reviewing Victory’s cost-of-service study (COSS) and recommendations from an independent rate consultant, the board has proposed a three-part rate structure and several other changes to Victory’s rates. A COSS looks carefully at the cost of providing service to each rate class (e.g., residential, industrial, small commercial, large commercial, irrigation) based on the load and service characteristics of that class. It identifies the revenue needed to cover the cooperative’s operating expenses and debt obligations and shows whether rates are fair across rate classes. Evaluating the results of a COSS also helps the board assign responsibility for costs in a way that is fair to all members.

Why a Three-Part Rate?

A three-part rate would add a demand charge to Victory’s existing service availability and energy charges. Energy is the amount of power you consume over time. Demand is the amount of electricity needed to power all the electric appliances drawing energy in your home or business at a specific point in time.

A three-part rate structure has been proposed for several reasons:

• A three-part rate would better align Victory members’ bills with how Victory is billed by our wholesale power supplier. Victory is charged based on peak demand in kilowatts along with total energy usage in kilowatt-hours.
• This rate design would distribute energy costs fairly among our rate classes so members pay for the costs they create. This prevents members with lower demand from subsidizing members who draw greater amounts of power at once. 
• A three-part rate gives members more control of their bills by managing their demand and using energy efficiently. Households and businesses can reduce their demand by spreading out appliance usage. 

What’s Next?

We know no one welcomes a rate increase. But we want members to understand the proposed changes, why they are needed now and how each rate class may be affected. 

We've been holding member listening sessions and welcome hearing any questions or concerns you may have.

After the public comment period, trustees will vote on the proposal at a public meeting Dec. 18. If approved, the changes will take effect Jan. 1, 2027, and appear on bills mailed in February.

We are committed to explaining the changes, answering your questions and sharing tips to help you manage demand in Kansas Country Living, on our Facebook and Instagram pages and in person. Thank you for your cooperation and trust in Victory throughout the rate-change process.

More Information

• Proposed Rate Change
• Understanding Demand Charges