The settlement involves Hays-based Mid-Kansas Electric Co., customer advocates, the Kansas Corporation Commission's staff and other parties.
The KCC, which regulates utilities, scheduled a hearing on the settlement. The parties have asked the commission to approve it by mid-January.
The proposed changes would increase annual revenues for Mid-Kansas by about $15 million. The company initially had hoped for $20 million in rate increases.
Mid-Kansas was formed by six electric co-operatives in 2005, and rate increases would vary based on which one serves a customer.