STATE OF MISSOURI
PUBLIC SERVICE COMMISSION
At a session of the Public Service Commission held at its office in Jefferson City on the 22nd day of December, 2014.
In the Matter of Application of Kansas City Power )
&
Light Company for Approval of the Accrual and ) File
No. EO-2015-0056
Funding of Wolf Creek Generating Station )
Decommissioning Costs at Current Levels. )
ORDER
APPROVING STIPULATION AND AGREEMENT
Issue Date: December 22, 2014 Effective Date: January 21, 2015
This order approves the stipulation and agreement between Kansas City Power & Light Company (KCP&L) and the Staff of the Commission regarding KCP&L’s funding for the decommissioning of its Wolf Creek Generating Station.
Commission rule 4 CSR 240-3.185 (3) states, in part:
On or before September 1, 1990, and every three years after that, utilities with decommissioning trust funds shall perform and file with the commission cost studies detailing the utilities’ latest cost estimates for decommissioning their nuclear generating unit(s) along with the funding levels necessary to defray these decommissioning costs. These studies shall be filed along with appropriate tariff(s) effectuating the change in rates necessary to accomplish the funding required.
On August 29, 2014, KCP&L filed an application pertaining to Wolf Creek asking the Commission to: (a) find that the 2014 cost study and 2014 funding analysis satisfies the requirements of 4 CSR 240‑3.185(3); and (b) approve the continuation of the annual accrual at the current level of $1,281,264.
Staff and KCP&L filed a non-unanimous stipulation and agreement on December 9, 2014. Commission rule 4 CSR 240-2.115 provides that if no party objects to a non-unanimous stipulation and agreement within seven days of its filing, the Commission will treat the stipulation and agreement as unanimous. The Office of the Public Counsel, the only other party, did not sign the stipulation and agreement, but has not opposed the agreement. Therefore, the Commission will treat the stipulation and agreement as unanimous.
The stipulation and agreement asks the Commission to:
·
Approve
the stipulation and agreement;
·
Receive
into evidence the stipulation and agreement and the 2014 cost study;
·
Find
that KCP&L’s 2014 cost study satisfies the requirements of 4 CSR 240‑3.185(3);
·
Find
that KCP&L’s Missouri retail jurisdiction annual decommissioning expense
accruals and trust fund payments shall continue at the current level of
$1,281,264;
·
Find
that the annual decommissioning costs are included in KCP&L’s current Missouri
cost of service and are reflected in its current Missouri retail rates for
ratemaking purposes; and
·
Authorize
KCP&L to continue to record and preserve Wolf Creek asset retirement
obligation costs, as agreed to by the Staff, Public Counsel, and KCP&L, and
authorized by the Commission in Case No. EU-2004-0294.
Having considered the 2014 decommissioning cost study for the Wolf Creek Generating Station and the stipulation and agreement, both of which are received into evidence, the Commission determines that the stipulation and agreement should be approved. In doing so, the Commission finds that KCP&L’s 2014 cost study satisfies the requirements of 4 CSR 240‑3.185(3). In addition, the Commission finds that KCP&L’s Missouri retail jurisdiction annual decommissioning expense accruals and trust fund payments shall continue at the current level of $1,281,264. The Commission also finds that the current decommissioning costs for Wolf Creek are included in KCP&L’s current Missouri cost of service and are reflected in its current Missouri retail rates for ratemaking purposes.
THE COMMISSION ORDERS THAT:
1. The stipulation and agreement filed by the Kansas City Power & Light Company and the Staff of the Missouri Public Service Commission on December 9, 2014, is approved.
2. The signatories shall comply with the terms of the stipulation and agreement.
3. The stipulation and agreement and Kansas City Power & Light Company’s 2014 cost study are admitted into evidence.
4. Kansas City Power & Light Company’s retail jurisdiction annual decommissioning expense accruals and trust fund payments shall continue at the current level of $1,281,264.
5. Kansas City Power & Light Company is authorized to continue to record and preserve Wolf Creek asset retirement obligation costs, as agreed by the Commission Staff, the Office of the Public Counsel, and KCP&L and authorized by the Commission in Case No. EU‑2004‑0294.
6. This order shall become effective on January 21, 2015.
7. This file shall be closed on January 22, 2015.
BY THE COMMISSION
Morris L. Woodruff
Secretary
R. Kenney, Chm., Stoll, W. Kenney,
Hall, and Rupp, CC., concur.