PR-09-210 -- PSC Approves Agreement Reached In KCP&L Electric Rate Case

Contact: Gregg Ochoa (573) 522-2760

FOR IMMEDIATE RELEASE -- JUNE 10, 2009

JEFFERSON CITY---The Missouri Public Service Commission has approved an agreement which grants an electric rate increase of approximately $95 million for Kansas City Power & Light.

The agreement reached by consumer advocates, large industrial customers, KCP&L and the PSC staff was presented to the commission for approval.

The rate increase will take effect for service on and after September 1, 2009.  For a typical residential customer, the PSC staff estimates the increase will be approximately $154 a year or approximately $12.82 a month (16.1%).

"The commission realizes that this is a significant increase. Today's decision allows KCP&L to recover costs associated with mandated environmental upgrades at Iatan I and other improvements made to its infrastructure,” said PSC Chairman Robert M. Clayton III. “This agreement was signed-off on by consumer advocates, large industrial customers and the PSC staff. All parties worked hard to reach a compromise that is in the public's best interest," Clayton said.

When KCP&L filed its rate request with the Public Service Commission on September 5, 2008, it sought to increase annual electric operating revenues by approximately $102 million.  

This is the third rate increase associated with a 2005 agreement which established an experimental regulatory plan which details the supply, delivery and pricing of electric service to be provided by KCP&L into the future.  The experimental regulatory plan includes environmental upgrades to a number of KCP&L’s existing power plants, wind generation, construction of a new coal-fired power plant (Iatan 2) and various customer programs designed to conserve energy.

KCP&L serves approximately 271,000 electric customers in 13 western Missouri counties.

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Case No. ER-2009-0089