FOR IMMEDIATE RELEASE -- January 09, 2013
Contact: Kevin Kelly (573) 751-9300
PSC Issues Decision In KCP&L Rate Case
Commission Denies Request To Increase Fixed Customer Charge
JEFFERSON CITY---The Missouri Public Service Commission has determined that Kansas City Power & Light Company (KCP&L) should be granted an electric rate increase of approximately $64 million to reflect the company’s increased costs of providing service to its customers, but should not be allowed to increase fixed charges that appear on customers’ bills.
When KCP&L filed its rate request with the Missouri Public Service Commission on February 27, 2012, it sought to increase annual electric revenues by approximately $105.7 million. The company sought a return on equity (ROE) of 10.4 percent and an increase in fixed charges on residential customer’s monthly bills. KCP&L also sought a fuel recovery mechanism known as an Interim Energy Charge (IEC).
In its original request, the company cited investments in company power plants and energy delivery systems to maintain and enhance the reliability of the company’s system; energy efficiency program expenditures; increased regional transmission system investments; a reduction in off-system sales; and needed infrastructure and environmental investments to ensure compliance with state and federal renewable energy and environmental mandates as reasons for seeking a rate increase.
In a 4-0 vote, the Commission allowed an increase of approximately $64 million; an ROE of 9.7 percent and rejected any increase in the fixed charges on customer’s bills.
KCP&L’s request to establish an IEC was withdrawn as part of an agreement reached among parties and approved by the Commission. An IEC would have allowed the company to recover fuel costs outside of a rate case.
KCP&L has a number of energy efficiency programs designed to empower customers to have more control over their energy costs. In this case, the Commission approved an agreement to continue the Economic Relief Pilot Program (ERPP) which is designed to help low-income customers with their electric bills as well as a low-income weatherization program.
The PSC staff estimates that the impact of the rate increase on a KCP&L residential customer using 1,150 kWh (kilowatt-hours) in the summer and 760 kWh in winter will be about $8.91 a month. It is expected that new rates will take effect in late January.
KCP&L provides electric service to approximately 271,400 customers in western Missouri.