OCEC’s rate classes are grouped together during a Cost of Service Analysis (COSA) and the cost of the service for that group is compared to the revenues collected from that same class. For each rate class there can be a separation that develops between the cost to provide services and the revenues collected from those services. A “subsidy” can occur when one or more rate classes are paying more than the cost and one or more rate classes are paying less than the cost of those services.
