The total amount of the request is approximately $55.2m. This would raise the typical residential customer monthly base bill 11.5%, or approximately $11.08 each month. If approved, the base rate increase is expected to be effective on October 17, 2010.
Michael Chesser, chairman and CEO of KCP&L, said: “Five years ago, we engaged the community to develop a plan to improve the environment and provide reliable electricity to fuel our regional economy. Today we are one step closer to meeting future demand at the lowest reasonable cost and maintaining competitive electric rates for generations to come.”
This rate increase request reflects the forthcoming completion of KCP&L’s Comprehensive Energy Plan (CEP), which was developed through a collaborative process that included community partners, customers, environmental groups, local elected officials and regulatory staff.
KCP&L’s rate request includes costs related to investments in new and cleaner coal-fired generation, upgrades to the transmission and distribution system and increases in operations and maintenance costs. The cost of fuel and KCP&L’s customer energy efficiency and affordability programmes are not part of this rate request and are recovered through a separate cost adjustment mechanism.
Iatan 2, an 850MW coal-fired generation unit located near Weston, Missouri, is scheduled to be completed in late summer of 2010. KCP&L owns 54.7% (465MW) of the unit. The Kansas rate increase request includes the portion of the projected total investment in Iatan 2 allocated to Kansas customers. Rates are expected to be further adjusted, up or down, in 2011 to reflect the actual total investment.
KCP&L intends to file a rate request with the Missouri Public Service Commission for its Missouri service area in early 2010, reflecting its Iatan 2 investment and other costs.
