PR-11-182 -- MEDIA ADVISORY: Phase-In Rate Increase Ordered For L&P Customers

Contact: Kevin Kelly (573) 751-9300

FOR IMMEDIATE RELEASE -- MAY 27, 2011

JEFFERSON CITY---The Missouri Public Service Commission has voted to phase-in an electric rate increase for L&P service territory customers of KCP&L-Greater Missouri Operations Company (KCP&L-GMO).  The phase-in will cover a three year period.  The Commission’s vote was 4-1.

The Commission was concerned over the impact that a 21 percent increase in electric rates would have on the company’s L&P service territory customers.

“The Commission believes that its allocation of Iatan 2 power to the L&P service territory will bring long-term rate stability to the area,” said PSC Chairman Kevin Gunn.  “However to lessen the financial impact, the Commission ordered a three year phase-in.”

Under the phase-in, the first year increase will be approximately $22.1 million-the amount originally sought by the company in its rate case filing in June 2010.  The Commission said today that the remaining increase, plus carrying costs, will be phased-in in equal amounts over the next two year period.

Under the first year of the phase-in, an L&P residential customer using 1,130 kWh in the summer and 780 kWh in the winter, will see electric rates increase by about $12.82 a month. 

On May 4, 2011, the Commission granted KCP&L-GMO a rate increase to primarily reflect the addition of the Iatan 2 coal-fired power plant. 

KCP&L-GMO provides electric service in its L&P service territory to approximately 66,100 customers in the Missouri counties of Andrew, Atchison, Buchanan, Clinton, DeKalb, Gentry, Holt, Nodaway, Platte and Worth.

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Case No. ER-2010-0356