FOR IMMEDIATE RELEASE -- September 13, 2018
Contact: Kevin Kelly (573) 751-9300
PSC Approves Change to KCP&L Fuel Adjustment Charge
JEFFERSON CITY---The Missouri Public Service Commission has approved a request filed by Kansas City Power & Light Company (KCP&L) to change the fuel adjustment charge (FAC) on the monthly bills of its electric customers.
KCP&L made two filings. In its first filing (ER-2019-0031), KCP&L proposed to adjust the FAC to reflect changes in its fuel and purchased power costs for the six month period January through June 2018. The second filing was KCP&L’s FAC true-up (ER-2019-0032).
For a residential customer using 1,000 kWh (kilowatt-hours) of electricity a month, the FAC will increase by approximately $0.60 a month, from approximately $4.95 a month to approximately $5.55 a month. The change is expected to take effect on October 1, 2018.
The FAC tariff allows the company to pass increases or decreases in its net fuel and purchased 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 serves approximately 272,800 electric customers in the Missouri counties of Carroll, Cass, Chariton, Clay, Howard, Jackson, Johnson, Lafayette, Livingston, Pettis, Platte, Randolph and Saline.