CCEC is conducting a comprehensive cost-of-service study to ensure that rates accurately reflect the true cost of delivering electricity to members. This analysis examines every component of the cooperative’s operations, including wholesale power purchases, system maintenance, equipment replacement, service reliability, and administrative expenses.
By evaluating how costs are distributed across residential, commercial, and industrial member groups, the cost of service study helps determine whether current rates remain fair, equitable, and aligned with today’s energy demands. It also enables the cooperative to better understand how different types of members utilize electricity and how these patterns impact system-wide costs.
To ensure that the process is fair and accurate, CCEC is working with an independent company that specializes in helping electric cooperatives review their costs.
The cost of service study also provides the foundation for long-term financial planning. As power supply costs, infrastructure needs, and usage patterns continue to change, the study allows CCEC to identify areas where efficiencies can be improved and investments can be prioritized. This process ensures that any future rate adjustments are data-driven and directly tied to the cooperative’s mission: providing safe, reliable, and affordable electricity to all members. It also increases transparency by ensuring that all members are aware of the reasoning behind rate adjustments.
In addition, the study helps prepare the cooperative for emerging challenges such as grid modernization, the integration of new technologies, and the ongoing demands of maintaining a resilient system in coastal communities.
By taking a proactive approach today, CCEC can make informed decisions that protect the cooperative’s financial health and support stable, predictable rates well into the future.
Rates based on the study’s findings will be announced in the summer and go into effect in October.