Reduce KCP&L's rate requests where warranted
The latest rate increase request by Kansas City Power & Light continues the trend of dire news for its customers during financially challenging times.
The utility is asking the Kansas Corporation Commission to allow a 12.9 percent jump in rates for its nearly 250,000 Kansas-side customers. If granted, the increase would cost the average residential customer an additional $150 a year.
And it would mean that rates would have soared by a total of 54 percent for Kansas customers since 2007, after five separate requests in that time.
The news isn’t any better for Missouri-side customers in the Kansas City area. Earlier this year, KCP&L announced it wanted a 15 percent increase for those users, which could end up resulting in a total hike in electricity rates of 66 percent since 2007.
Both the Kansas Corporation Commission and the Missouri Public Service Commission will have months to painstakingly review the utility’s cases and grant lower rate increases if warranted.
The commissions charged with looking after ratepayers must scrutinize all the programs and upgrades that KCP&L wants to finance with tens of millions of extra dollars. The review panels especially must be on guard against any unjustified costs sought by the utility. And they should determine whether the plans fairly share expenses between ratepayers and shareholders.
KCP&L previously has noted that depressed electricity sales, after years of dependable growth, have created some economic problems for the utility. The flip side is that significantly boosting the cost of electricity could make it tougher for this region to emerge from its economic funk.
For its part, KCP&L says its cost-cutting actions in recent years — such as reducing executive pay and its workforce — have saved millions of dollars.
In Kansas, the utility is seeking higher rates to pay for sensible projects. One was the addition of wind power to meet a state-mandated goal for renewable energy. The other is to pay for environmental upgrades at a major power station.
But even with those admirable goals, KCP&L as a regulated utility is obligated to spend its customers’ funds as prudently as possible.
The two state commissions must be vigilant, hold the utility accountable and strip out any parts of the rate requests they find invalid.
George Hunsucker
Northland
1 year agoAnd this is before the big 0’s EPA regulations on using coal. Sure to up our rates even more, but helping to “solve” the feared “global warming”…
oops, I mean “climate change”, sorry libs.
Sondra Knox
1 year agoI only wish they were kidding. There is no way that this is fair to the ratepayers. First, they tell us that the want us to conserve energy, so the rates will stay low, then when they don’t sell as much power, they come back hat in hand for yet ANOTHER rate increase. In my area, the former Aquila zone, if this rate increase goes thru, and it will, thanks to our rubber-stamp comission, my rates will have gone up close to 75% since they were purchased by this company. With the state of Missouri giving them a rubber stamp to charge ANY AND ALL costs associated with so-called, improvements to service, just how are the stockholders going to share in these costs? They aren’t. In the good old days, utilities paid for expansion by issuing bonds to be paid off by the ratepayers AFTER the expansion was completed, not before. Now, it’s the other way around, thanks to our all-business state government. One thing is certain, tho. They will be back next year after another increase, and it too will be granted. I’m wondering how long it will take before they realize they are killing the goose that lays the golden eggs for them. I won’t be alive to see it if it does, I’m afraid…….
Steven Fetter
66223
1 year agoYou label these costs as “sensible”.
I say these higher cost are green insanity that provide no measurable improvement to our already good air quality.
The higher costs to consumers and businesses will be a major drain on our economy for the foreseeable future.
Bill Mccwiliams
1 year agoDue to a slow economy, everyone has been doing everything just short of keeping the lights off, in order to have lower utility bills. So KCPL’s bottom line is not what it should be, and they feel their customer base should provide customer welfare to improve it. I am self employed and I can,t go crying to the Kansas Corporation Commission just because of a slow economy, so why in the hell should they! The next article is going to read, Kansas Gas Service is asking the KCC for a 20% rate hike, because the winter was way to warm. This nonsense needs to stop, these utilities have a monopoly on their customers, you can,t buy your electricity, or natural gas from another provider, enough is enough.
Kent Mueller
1 year agoIt is unbelievable how people can be duped by a populist editorial. It’s easy to be popular when you say things with which no on can disagree. Think about it folks. The core of this editorial says this:
“…the commissions…must scrutinize all the programs and upgrades..”
“..must be on guard for any unjustified costs..”
“..determine whether the plans fairly share expenses…”
“..state commissions must be vigilant..”
Really, folks, that is all this editorial says. It says, commissions, do your job. Of course, they say it in an accusatory tone. They also insinuate that somehow the shareholders of a utility should bare the brunt of lowering costs for the public to spur economic growth. I don’t see the Star discounting its ad charges (including obituaries!!)to help the area with economic growth. Folks, that would be the same thing.
The underlying tone here is…big, bad business. No one likes increasing costs. But let’s find untoward requests before we write editorials.