What is a Cost of Service/Rates Study?

A rate study is a detailed analysis to ensure the way that OPALCO bills the membership is fair and fits with the cooperative principles. As a nonprofit electric co-op, OPALCO is a cost-of-service organization, meaning we only collect as much money as is needed to cover our business costs. Any extra money collected is returned to members via capital credits.

A cost-of-service-analysis (COSA), determines how much it costs to provide service to each member class (e.g., residential, commercial). The results of a COSA guide the development of equitable and cost-based utility rates.