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Earlier this year, FreeState announced a cost-of-service study would be necessary to examine current rate structures. The co-op hired a third-party rate consultant, Power System Engineering, to complete the study. It is the first time the cooperative has done a complete cost-ofservice study since prior to the consolidation between LeavenworthJefferson Electric Cooperative and Kaw Valley Electric Cooperative in 2017. LJEC most recently completed a cost-of-service study in 2009 and KVEC had most recently completed a cost-of-service study in 2012.
Since rates were last adjusted, the cost of doing business has increased significantly. Efforts like the consolidation eight years ago, and two updates to the electric service charge in the past five years have not been enough to keep up with the changing economic climate.
Co-op trustees and staff understand there is never a good time to adjust the cost of something members depend on. However, costs of doing business and providing you with reliable power have continued to increase and rates must also change.
Internally, we have modified budgets and adapted. We’ve curbed spending and looked at critical operations. Still, supply chain challenges, record inflation and the cost to produce and transmit power have been factors outside our control.
For the past eight years, FreeState has absorbed as many costs as possible to avoid or delay any additional burden to our members. We’ve been successful up to now, but we’ve reached a point where it is no longer sustainable for the longterm financial future of the co-op.
We need to be more proactive. We need to be fiscally responsible.
Pages 12B-C of the January Kansas Country Living centerspread contain more information about the proposed rates and how they impact each of you. If the board passes the proposed rates, they will be implemented for January 2025 usage, and you will see new rates on your February 2025 bill.
We invite and encourage our members to provide feedback — it’s part of the cooperative difference. To provide feedback, visit www.freestate.coop/rates. Members can provide comments and feedback until Jan. 27 at 5 p.m. The board will review all feedback before the vote on Monday, Jan. 27.