What is a cost of service study?

A Cost of Service Study (COSS) is a comprehensive analysis of a utility’s costs to deliver electric service. As a not-for-profit organization, SVEC operates at cost, meaning our goal is to maintain financial stability while providing reliable service—not to generate profit. The COSS ensures that costs are allocated among members based on the actual cost of providing electricity. While the study may lead to adjustments in rate structures, its primary objective is equity—ensuring that all members contribute appropriately while supporting the cooperative’s long-term sustainability.