Cost Analysis Shows a Need for Rate Structure Changes

As mentioned previously, Victory Electric has been undergoing a comprehensive cost-of-service study (COSS) by Power System Engineering. PSE, an independent rate consultant, has concluded its evaluation and determined that changes to Victory Electric’s rate structure are necessary. 

Victory Electric does not make routine rate changes, and we have not had a rate change since 2017. However, sometimes a rate redesign is needed to ensure that energy costs are distributed fairly and that the cooperative is financially healthy and well prepared to meet future needs. 

PSE is now finalizing its recommendations, which will be presented to the board. If the board moves forward with a new rate design, Victory Electric will open a comment period and hold public meetings about the proposed changes. The board will consider members’ feedback and vote on the rate changes at an open meeting. If the vote passes, the new rates will then be implemented. We will provide additional details to you as we move through the rate change process.

To prepare for these important changes, Victory Electric wants to help you understand the factors that drive electricity costs and what that means to members. This month, Sunflower Electric Power Corporation President and CEO Steve Epperson and Victory Electric CEO Shane Laws are launching a series of articles that will look at some of the major factors influencing the cost of electricity as well as opportunities and challenges ahead. 

The first story in the series, “Understanding the Cooperative Difference,” explains our partnership structure with Sunflower, the cost components of electric bills, ongoing industry challenges and our mutual accountability to members. We encourage you to read part one of our Behind the Cost of Power series. 

We appreciate your continued trust in Victory Electric as we navigate these changes together.