KCP&L seeks 16-percent electric rate hike
KANSAS CITY — KCP&L Friday filed rate increase requests with the Missouri Public Service Commission and the Kansas Corporation Commission to
increase base rates for electric service in all five of its service areas.
If granted, the typical residential customer’s rates would increase 16 percent, or $12.27 per month.
The new rates would take effect in late summer of 2009, the company said in a written statement.
The rate requests vary in each of KCP&L’s service jurisdictions and include recovery for investments on environmental upgrades at KCP&L’s Iatan 1 and Sibley power plants, Crossroads generation and transmission resources and energy efficiency programs made under KCP&L’s Comprehensive Energy Plan.
The requests also seek recovery of increased operating costs. Changes in generation fuel costs are not included in this rate increase request for customers in the areas formerly served by Aquila, including Sedalia.
For these customers, adjustments for increases and decreases in the cost of fuel will be determined in separate fuel cost proceedings.
Through operational savings realized through KCP&L’s integration with Aquila, the rate increases KCP&L is seeking are lower than they would have otherwise been as stand-alone companies, KCP&L said.
The Aquila transaction is expected to yield more than $500 million in customer savings by 2017.
As part of its rate request, KCP&L is seeking regulatory approval for measures aimed at helping customers affected by the proposed rate increases. KCP&L is filing an Economic Relief Pilot Program in both Kansas and Missouri.The Pilot Program will provide monthly financial assistance to qualified lower-income customers. In addition, KCP&L is increasing its weatherization efforts throughout its service territory and expanding its menu of energy efficiency programs, giving customers more control over their energy use.
The total amount of the rate increase request is $257.5 million, $23 million less than it would have been without the Aquila acquisition.
