FOR IMMEDIATE RELEASE -- February 20, 2014
Contact: Kevin Kelly (573) 751-9300
KCP&L-GMO Customers Should See Lower FAC Rates As Public Service Commission Approves New Fuel Adjustment Tariff
JEFFERSON CITY – The Missouri Public Service Commission has approved a tariff that will reduce fuel adjustment charges for electric utility services in KCP&L’s Greater Missouri Operations (KCP&L-GMO) territory.
The new tariff will take effect March 1 and will mean a reduction of approximately $1.10 a month for average residential customers in the L&P service territory (St. Joseph) and approximately $0.82 a month for customers in the MPS service territory (Kansas City). An average residential customer in this comparison uses 867 kWh of electricity per month.
The fuel adjustment charge was authorized by the Commission for KCP&L-GMO in a regular rate case in 2007. The FAC tariff allows the company to pass increases or decreases in its net fuel and purchase power costs to customers outside of a general rate case.
The FAC allows the company to recover most – up to 95 percent – of its costs, but not all, to encourage conservation and prudence in fuel use by the company. Any charges resulting from the fuel adjustment clause must appear in a separate category on customers’ bills.
Fuel adjustment charges are intended to help companies deal with volatility in fuel pricing. The FAC tariff requires regular adjustments to reflect changes in prices the company has incurred for fuel and for wholesale power purchased to serve customers.
KCP&L-GMO provides electric service to approximately 313,000 electric customers in Missouri.