Bridging the Gap: Presenting Cost of Service Studies to Cooperative Boards

A Cost of Service Study (COSS) is more than a technical analysis—it’s a strategic tool that ensures electric rates are fair, transparent, and financially sound. Yet, explaining the need for a COSS to a board of directors can be challenging, especially when balancing technical details with governance-level concerns.

This session will provide utility leaders with practical strategies for framing the COSS in board-friendly terms. Drawing from cooperative principles and regulatory requirements, we’ll walk through how to communicate the purpose, process, and outcomes of a COSS in ways that resonate with directors’ responsibilities. Key topics include:
• Why a COSS matters: fairness, financial health, regulatory defense, and long-term planning.
• The board’s role: from consultant selection to setting policy priorities, approving rates, and ensuring transparent member communication.
• From study to rates: how a COSS supports regulatory filings, aligns with member equity goals, and builds confidence in rate adjustments.

Attendees will leave with tools and messaging strategies to position the COSS not just as a rate study, but as a vital governance instrument that reinforces fairness, transparency, and trust in the cooperative.

Presenter and Moderator Bios

Presenter: Craig R. Woycheese, CPA, MBA, Manager of Utility Rates and Financial Analysis, Toth and Associates, Inc.

Craig Woycheese is a consultant with Toth & Associates, Inc., specializing in utility rate design and cost of service analysis. He works with electric cooperatives and municipalities across the country to develop fair, transparent, and financially sustainable rate structures. Craig has extensive experience helping boards of directors and community leaders understand complex financial and regulatory issues in clear, practical terms. His expertise bridges technical analysis with accessible communication, ensuring sound decisions that balance member equity and long-term financial health.

Moderator: Melissa Felty, MBA, CPA, CFPC, Chief Financial Officer, First Electric Cooperative Corporation

Melissa Felty is the Chief Financial Officer at First Electric Cooperative Corp. in Jacksonville, Arkansas. She has been with the co-op since December 2012.  Prior to her career with the co-op she was in the banking industry in New York for 12 years with JP Morgan and Bear Stearns.