Due to excessive inflationary pressures, Lane-Scott Electric (LSEC) contracted with C.H. Guernsey, Inc. from Oklahoma City to conduct a financial analysis and cost-of-service study (COSS). LSEC has hired Guernsey on previous studies due to their national reputation for quality work and a long history of working with cooperatives, including LSEC.
Our last COSS was done in 2021,using 2020 as a base year for cost recovery. The United States Bureau of Labor Statistics indicated that the U.S. Consumer Price Index had risen 10.01% since the previous LSEC COSS in 2016. The 2021 study indicated that LSEC needed to increase rates by an overall 6.43% to cover costs (3.58% below inflationary pressures).
The current LSEC COSS used 2023 as a base year. The U.S. Bureau of Labor and Statistics Consumer Price Index calculator indicates a 16.98% inflationary increase while the COSS indicates a 8.82% rate adjustment is needed.
TIMELINE
March 25, 2024 - Guernsey presented the completed study to the Lane-Scott Board of Trustees.
Action: LSEC to present the COSS to the membership and gather comments.
April 8, 2024 - Public Meeting in Dighton, 410 S. High Street at 6:30 p.m.
April 11, 2024 - Public Meeting in Ness City, Peoples Bank, 210 S. Kansas Ave. at 6:30 p.m.
April 22, 2024 - Open Meeting to membership and Action will be taken on the proposed rate adjustments., Lane-Scott Electric Office, 410 S. High St., Dighton at 6:30 p.m.
June 2024 - Final rates will be published in the June 2024 Kansas Country Living magazine.
- New rates go in effect during June electricity use.
July 2024 - Rates effective on July 1 billing with June usage.
Members have the right to contest the rate proposal with the Kansas Corporation Commission under statute 66-104d
Kansas Corporation Commission Main Office
1500 SW Arrowhead Road
Topeka, KS 66604-4027
Email: public.affairs@kcc.ks.gov
Phone: (785) 271-3100
Fax: (785) 271-3354
Consumer Inquiries/Complaints
Phone: (800) 662-0027 or (785) 271-3140
Fax: (785) 271-3111
Email: public.affairs@kcc.ks.gov
