Rate Study and Design

Rate Study and Design completed at Rolling Hills Electric Cooperative, Inc evaluates the cost of providing electric service and helps determine fair and sustainable rates for members. 

The study analyzes expenses, usage patterns, and system needs to ensure rates accurately reflect the cost of service.

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Financial

Rate Study Information


In April of 2025, we informed our members via the Kansas Country Living magazine that Rolling Hills Electric Cooperative was undergoing a Rate Study. The Rolling Hills Electric Board of Trustees authorized a revenue requirement and cost-of-service study to consider the need for a future rate increase. The Prime Group LLC, an independent rate consulting firm, was contracted to perform both studies. 

The rate study has several stages

1 Revenue Requirement: Calculate the revenue needed to operate the business successfully in the future. 

2 Cost-of-Service Study: Identify the portion each rate class is responsible for in the suggested revenue requirement.

3 Rate Design: Design rates so that revenue is collected fairly in each rate class, while also meeting any other goals identified by the board.

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Break down raising cost
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under equipment