FOR IMMEDIATE RELEASE -- November 01, 2018
Contact: Kevin Kelly (573) 751-9300
PSC Approves Agreements Which Reduce the Electric Rates
of KCP&L and KCP&L-GMO Customers
JEFFERSON CITY---The Missouri Public Service Commission has approved agreements reached by parties in electric rate cases filed by Kansas City Power & Light Company (KCP&L) and KCP&L-Greater Missouri Operations Company (GMO) which reduce the annual electric operating revenues of KCP&L by approximately $21 million and of GMO by approximately $24 million. The Commission’s vote was 5-0.
Residential customers of GMO will see rates decrease by approximately 3.2% while residential customers of KCP&L will see a reduction of approximately 1.4% under the agreements approved by the Public Service Commission. The rate reductions are expected to take effect in December 2018.
When KCP&L and GMO filed rate requests with the Public Service Commission on January 30, 2018, KCP&L sought an increase in electric operating revenues of approximately $16.4 million. GMO sought to increase annual electric operating revenues by approximately $19.3 million.
The agreements approved by the Commission address a number of issues including:
Federal Tax Cuts and Jobs Act of 2017 (TCJA): The electric rate reductions reflect the full impact of the TCJA which lowered the corporate tax rate from 35% to 21% for businesses, including utilities.
Clean Charge Network (CCN): Assets for electric vehicle charging stations will be included in the base rates for both KCP&L and GMO under the agreements. A new customer class for electric vehicle charging stations will be established and no other customer class will bear any of the costs related to this service through either base rates or through any rate adjustment mechanism. KCP&L and GMO will not expand the CCN without receiving Commission approval.
Time of Use (TOU) Rates: KCP&L and GMO will establish alternative rate plans in the form of TOU rates for residential customers. An opt-in rate would be available as an alternative to standard residential rates which will continue to be available.
Solar Subscription Rider: This is a pilot program which is designed to provide a limited number of customers the opportunity to voluntarily subscribe to the generation output of a solar resource and receive electricity from solar resources. Program participants would subscribe and pay for solar blocks of 500 watts each. KCP&L and GMO agree to seek competitive bids for two systems up to 2.5 MW each to be located in each Missouri jurisdiction or one system up to 5 MW located in the most economic location-selecting the alternative with the lowest cost of implementation. KCP&L and GMO will receive commitments for subscription of at least 90 percent of the capacity for each facility before beginning construction.
Renewable Energy Rider: Designed to provide non-residential customers a voluntary opportunity to purchase renewable energy, in addition to service provided through a generally available rate, from renewable energy sources that the company contracts.
Fuel Adjustment Clause (FAC): KCP&L and GMO sought continuation of the FAC. Under the agreements, the FAC will be continued with KCP&L and GMO adjusting customer bills twice a year to reflect any increases or decreases in fuel and purchased power costs.
Under the agreements approved by the Commission, KCP&L and GMO will:
• Continue the income eligible weatherization program.
• Investigate solar installation and or other renewable generation resources at any plant site that closes prior to the end of their next rate case(s).
KCP&L serves approximately 284,500 electric customers in the Missouri counties of Carroll, Cass, Chariton, Clay, Howard, Jackson, Johnson, Lafayette, Livingston, Pettis, Platte, Randolph and Saline.
GMO provides electric service to approximately 323,500 customers in Andrew, Atchison, Barton, Bates, Benton, Buchanan, Carroll, Cass, Cedar, Clay, Clinton, Dade, Daviess, DeKalb, Gentry, Grundy, Harrison, Henry, Holt, Jackson, Johnson, Lafayette, Livingston, Mercer, Nodaway, Pettis, Platte, Ray, St. Clair, Vernon and Worth counties.