Southern Pioneer Electric Company will begin operating under local rate oversight following passage of Senate Bill 348 by the Kansas Legislature, a change company officials say will reduce regulatory expenses, improve efficiency, and allow the utility to respond more quickly to the needs of the communities it serves.
The legislation exempts not-for-profit, wholly owned subsidiary electric utilities, including Southern Pioneer, from the retail rate-setting jurisdiction of the Kansas Corporation Commission (KCC). Instead, rates will be established through oversight by Southern Pioneer’s locally governed board of directors.
Southern Pioneer serves more than 13,200 consumers and approximately 17,125 meters across 10 counties in south-central and southwest Kansas through offices in Ulysses, Liberal, and Medicine Lodge.
“Southern Pioneer has always been locally governed and operated as a not-for-profit utility solely focused on serving our consumers,” said Lindsay Campbell, president and CEO of Southern Pioneer Electric Company. “This legislation aligns our regulatory structure with that mission by reducing unnecessary regulatory costs while keeping decision-making and accountability close to the communities we serve.”
Until passage of Senate Bill 348, Southern Pioneer was the only not-for-profit electric utility in Kansas whose retail rates remained under the KCC’s full rate-setting jurisdiction. Other Kansas electric cooperatives have operated under self-regulation since 2009.
According to Southern Pioneer, the KCC rate approval process typically takes about eight months and requires utilities to pay legal, consulting, administrative, and regulatory expenses associated with formal rate proceedings. The company reports spending more than $2.2 million on regulatory proceedings and related costs since 2019, including approximately $500,000 in 2024. As a not-for-profit utility those costs are paid for by Southern Pioneer consumers through higher rates.
Campbell said reducing those expenses put immediate downward pressure on electric rates and allows more resources to remain focused on serving consumers and investing in the electric system.
“Every dollar we don’t spend on unnecessary regulatory proceedings is a dollar that can be directed toward maintaining reliable service, improving our electric system, or helping manage costs for the benefit of our consumers,” Campbell said.
Company officials emphasized that the legislation does not eliminate consumer protections.
Under Kansas law, Southern Pioneer must provide public notice at least 10 days before any board meeting where rates will be discussed or voted on, and those meetings must remain open to consumers. Customers also retain the ability to petition the Kansas Corporation Commission for review of Southern Pioneer rates. In addition, the utility remains subject to state and federal oversight related to safety, reliability, environmental compliance, and labor requirements.
To increase local representation, Southern Pioneer is also expanding the number of board members representing Southern Pioneer communities from two to six.
“Our board members live and work in the same communities we serve,” Campbell said. “They understand the challenges facing our region because they experience them firsthand. That local perspective is an important part of responsible oversight and accountability.”
To learn more about self-regulation, please visit our website at southernpioneer.net. In addition, Southern Pioneer is hosting its first town hall meetings at 5:30 p.m., on Monday, July 20, at The Heritage Center (1056 SE Isabel Rd) in Medicine Lodge, Kan., to further explain self-regulation, how the change affects consumers, and answer questions from consumers. Meeting dates and locations will be announced on the company’s website and social media channels.
