Using webpack-dev-server, How can I convert multiple scss files to single css file? It breaks on "@import"

When I run

webpack-dev-server --config webpack.config.json

I get the following error:

@import "modules/colors";
^
SyntaxError: Unexpected token ILLEGAL
    at Object.exports.runInThisContext (vm.js:76:16)
    at Module._compile (module.js:513:28)
    at Object.Module._extensions..js (module.js:550:10)
    at Module.load (module.js:458:32)
    at tryModuleLoad (module.js:417:12)
    at Function.Module._load (module.js:409:3)
    at Module.require (module.js:468:17)
    at require (internal/module.js:20:19)
    at Object.<anonymous> (/home/bporter/web/worldbox_phalcon/webpack.config.js:6:1)
    at Module._compile (module.js:541:32)

So clearly webpack doesn't understand my sass/less files, and I'm not sure what I'm missing in the webpack config. I need the files that skeleton.scss imports to be output to a file public/css/style.css

skeleton.scss

/*
* Skeleton V2.0.4
* Copyright 2014, Dave Gamache
* www.getskeleton.com
* Free to use under the MIT license.
* http://www.opensource.org/licenses/mit-license.php
* 12/9/2014
* Sass Version by Seth Coelen https://github.com/whatsnewsaes
*/
@import "modules/colors";

/* Base files. */
@import "base/normalize";
@import "base/variables";
@import "base/functions";
@import "base/base-styles";
@import "base/utils";
@import "base/typography";

/* Modules */
@import "modules/grid";
@import "modules/buttons";
@import "modules/forms";
@import "modules/lists";
@import "modules/code";
@import "modules/tables";
@import "modules/spacing";
@import "modules/media-queries";
@import "styles";

package.json

{
  "name": "worldbox_phalcon",
  "version": "1.0.0",
  "description": "This README would normally document whatever steps are necessary to get your application up and running.",
  "main": "dev.js",
  "dependencies": {
    "babel-core": "^6.14.0",
    "babel-loader": "^6.2.5",
    "babel-preset-es2015": "^6.14.0",
    "babel-preset-react": "^6.11.1",
    "css-loader": "^0.25.0",
    "extract-text-webpack-plugin": "^1.0.1",
    "less-loader": "^2.2.3",
    "lodash": "^4.15.0",
    "node-sass": "^3.9.0",
    "postcss-loader": "^0.11.1",
    "react": "^15.3.1",
    "react-dom": "^15.3.1",
    "react-hot-loader": "^3.0.0-beta.3",
    "sass-loader": "^4.0.1",
    "webpack": "^1.13.2",
    "webpack-dev-server": "^1.15.1",
    "write-file-webpack-plugin": "^3.1.8"
  },
  "devDependencies": {},
  "scripts": {
    "test": "echo \"Error: no test specified\" && exit 1"
  },
  "author": "",
  "license": "ISC",
}

webpack.config.json

var webpack = require('webpack');
var path = require('path');
var ExtractTextPlugin = require('extract-text-webpack-plugin');
var WriteFilePlugin = require('write-file-webpack-plugin');

// THIS IS WHAT BREAKS webpack-dev-server
require('./public/scss/skeleton.scss')


module.exports = {
    devtool: 'inline-source-map',
    debug: true,
    entry: [
        'webpack-dev-server/client?http://localhost:8081/',
        'webpack/hot/only-dev-server',
        './public/js/components/App.jsx'
    ],
    contentBase: "http://worldbox.me:80/",
    output: {
        path: path.join(__dirname, '/public/js'),
        filename: 'app.js',
        // filename: '[name].js',
        publicPath: 'public/js/'
    },
    publicPath: "http://worldbox.me/",
    resolve: {
        modulesDirectories: ['node_modules', 'public/js/components', 'public/scss'],
        extensions: ['', '.js', '.jsx']
    },
    module: {
        loaders: [
            {
                test: /\.jsx?$/,
                exclude: /node_modules/,
                loaders: ['react-hot', 'babel?presets[]=react,presets[]=es2015']
            },
            {
                test: /\.scss$/,
                // loader: ["style", "css", "autoprefixer", "sass"]
                // loader: "style!css!autoprefixer!sass",
                // loader: ExtractTextPlugin.extract("style-loader", "css-loader?sourceMap!autoprefixer-loader!sass-loader?sourceMap")
                loader: [ExtractTextPlugin.extract('style!css!sass'),'css?modules&importLoaders=1&localIdentName=[name]__[local]___[hash:base64:5]','sass?sourceMap&config=sassLoader'],
                // include: './public/scss'
            }
        ]
    },
    sassLoader: {
        includePaths: [path.resolve(__dirname, "./public/scss")]
      },
    plugins: [
        new webpack.HotModuleReplacementPlugin(),
        new webpack.NoErrorsPlugin(),
        new WriteFilePlugin(),
        new ExtractTextPlugin('./public/css/style.css', { allChunks: true })
    ],
    devServer: {
        proxy: {
          '**': {
            target: "http://worldbox.me/",
            changeOrigin: true,
            secure: false
          }
        },
        outputPath: path.join(__dirname, '/public/js/'),
        hot: true,
        port: 8081,
        stats: { colors: true },
    }
};

// console.log(module.exports);

Any help would be greatly appreciated!