Rate Schedule

Rates will go into effect with 2024 July billing, June usage.

A third party contractor (Guernsey) analyses the financial forecast of Lane-Scott. The current operating revenue, operating expenses, and interest on long-term debt and other reductions are analyzed. Rates must then be forecasted to cover expenses. To forecast revenue requirements there are many costs to consider.

1. Operating Expenses: Rates must produce sufficient levels of cash to cover operating expenses and provide sufficient margin to realize financial objectives.
2. Plant Additions - Equity Objective: Rates must produce sufficient levels of cash to pay for capital expenditures. These cash requirements depend upon the Board’s desired equity objective, capital credits refund objectives and current equity level.
3. Meet Lender Requirements: Rates must produce sufficient levels of cash to maintain key operating ratios as prescribed in the Cooperative’s debt covenants.
4. Maintain Cash General Funds: Rates must produce sufficient levels of cash to maintain or build general funds reserves and maintain liquidity objectives.
5. Pay Capital Credits: Rates must produce sufficient levels of cash to cover capital credit payments to members based on the Boards desired rotation cycle while also maintaining equity objectives.

After the financial analysis has been completed Guernsey then looks at how each of the rate classes are performing based on each rates revenues, expenses, and rate of return to determine revenue deficiencies per rate.

Based on the nature of each rate, a recommended rate design of the energy charge (kilowatt per hour rate), monthly customer charge, or demand charge (kilowatt charge for services such General Service Large and Large Industrial meters), is provided for the boards final approval.

The costs to make electric service available to all members. These are costs that do not vary with consumption and are the same for all members within a customer class (residential, commercial, irrigation, large power, etc.)

Included Are:

1. A portion of fixed costs associated with distribution plant investment (poles and wires.)
2. Costs associated with the equipment and wiring to provide electric service (transformer, service drop and meter.)
3. Expenses for reading meters, billing, processing payments and consumer accounting.
4. Expenses for a portion of administrative and general expenses.

No, rates are not affected by the cost of wholesale power. Lane-Scott passes through the cost of wholesale power directly to our members from Sunflower Electric through the monthly Energy Charge Adjustment (ECA).

LSEC offers a number of options to help you manage your bill. Some services include automatic payment withdraw, prepay service, and budget billing to help you manage your finances. Other ways you can reduce your electricity use is by increasing the energy efficiency of your home with insulation, weather stripping, HVAC, appliances, and smart thermostats to help set your thermometer up or down when you aren’t home. There are many ways to be more energy efficient. Our website has more information and tools on our Energy Efficiency page.

Many factors can affect rates, most are unplanned and can be tied to storm damage, inflation, and stricter environmental requirements. LSEC will continue to do all in our power to minimize the impacts of any arising issues by being proactive and focusing on maintaining the reliability, quality, and integrity of our system.