For more information contact: Linda Berry, (785) 271-3269 or Samir Arif, (785) 271-3188
September 10, 2015
Kansas Corporation Issues Order Approving Kansas City Power and Light Rate Increase
Topeka - The Kansas Corporation Commission today issued an order that would increase rates for Kansas City Power and Light (KCPL) customers by 9.07%. The Commission's order approves a total revenue increase of $48.6 million. The order increases the fixed charge for residential customers from $10.71 to $14.00. The order also allows for 9.3% Return on Equity (ROE) for KCPL. The full order is attached.
Citing unrecovered costs from the construction of environmental upgrades at the La Cygne generating station, KCPL's initial application requested a $67.3 million increase in electric rates, equal to a 10.3% ROE. KCPL began construction on the La Cygne environmental upgrades in 2010, and after the rate increase associated with the order, KCPL will have no further un-recovered costs related to the La Cygne construction project.
Commissioner Pat Apple did not join in this order, based on concerns over the fixed monthly residential charge, ROE, and KCPL's treatment of all-electric customers. A full explanation of Commissioner Apple's vote is attached.
KCPL serves roughly 250,000 Kansas customers and roughly 550,000 Missouri customers. The Kansas Corporation Commission regulates public utilities including natural gas, electric companies, and oil and gas producers. The Commission's regulatory oversight of public utilities primarily pertains to rates and terms of service. In order to ensure that customers of regulated utilities are provided sufficient and efficient service at just and reasonable rates, jurisdictional utilities may not change retail rates without Commission approval.
The order can be viewed by visiting this link: Order on KCP&L's Application for Rate Change.