What You Should Know About Westar Energy's Proposed Rate Increase Request

 

On Monday, March 2, 2015, Westar Energy filed for a $152 million rate increase with the Kansas Corporation Commission (KCC).

If the increase is granted by the KCC, Westar estimates its residential customers would pay 7.9% more, or about $13 extra each month on their electric bills.

Westar attributes the need for higher prices to the cost of retrofitting the La Cygne coal-fired plant to comply with environmental regulations, improvements to the Wolf Creek Nuclear Generating Station to extend its life, and starting a five-year program to reduce power outages by replacing out-of-date equipment.

In addition, Westar is asking the KCC to approve three different rate plans that customers can choose from, depending on what customers believe is best for their household.  The rate plans are as follows:

1) This is the standard plan using the current rate design, except Westar proposes to increase the monthly customer charge from its current $12 to $27 over five years at $3 per year.

2) The second plan looks like the current rate design, but has a $50 per month customer charge, but then charges a lower rate (2 cents) for the first 600 kilowatts and then a medium rate (7.8 cents) for all other killowatts in the winter, and a higher rate (9 cents) over 1000 kilowatts in the summer.

3) The third plan is brand new. It’s a three part rate where the customer will pay a monthly customer charge, probably $15, then will pay a charge in winter based on the customer’s highest usage peak in the month and the a flat fee for all energy used.

Westar is also proposing to increase rollout of its smart meters. The costs of the meters would be spread out over five years.

“We think it’s important to shine a spotlight on proposed rate increases and service charges so consumers know what’s in the fine print of the proposals,” said AARP Kansas Director Maren Turner. “The KCC holds public hearings during consideration of rate increases and that’s a great opportunity for utility customers to bring up any concerns they have about the impact of increases on their household budgets.”

During the last Westar rate increase consideration in 2013, more than 1,800 consumers contacted the KCC to voice concern. Westar had sought a $31.7 million increase which would have raised residential electric rates by between $7.50 and $15 per month. However, they were granted a $30.7 million increase instead, which raised rates an average of $3 per month.  This latest rate increase request, if granted, will be about the 20th rate increase Westar customers have experienced since 2008.

More information can be found at on the KCC website at http://www.kcc.state.ks.us/ or at public.affairs@kcc.ks.gov

Additional contact information for the KCC is as follows:

Toll Free Helpline: (800) 662-0027

Phone: (785) 271-3140

Fax: (785) 271-3111

TDD Kansas Relay Center: (800) 766-3777

Mail: KCC - Public Affairs & Consumer Protection
1500 SW Arrowhead Rd.
Topeka, KS 66604-4027