For more information contact: Jesse Borjon, 785-271-3269
Wednesday, January 18, 2012
Commission Grants Additional $253,120 in Kansas City Power and Light Company (KCPL) Rate Case
Topeka, KS - Today, the Kansas Corporation Commission (Commission) issued a decision to allow KCP&L to recoup an additional $253,120 in rate case expenses. The new rates go into effect February 1, 2012.
On November 22, 2010, the Commission awarded KCP&L a revenue increase of $21,846,202, which included rate case expense totaling $5,669,712. This figure included $1,169,712 for Citizen's Utility Ratepayer Board (CURB) and Commission staff, and $4.5 million for KCP&L-only rate case expense. This was the fourth and final rate case in a series for KCP&L. Several Petitions for Reconsideration were filed and ruled upon by the Commission. Subsequently, in an Order issued February 21, 2011, the Commission granted reconsideration of its prior decisions on rate case expense for this docket. This action reopened the administrative record to receive evidence specific to rate case expense.
In this proceeding on reconsideration, KCP&L requested a total rate case expense of $9,033,136. This figure included $1,422,832 for CURB and the Commission staff, with the remaining cost of $7,610,304 for KCP&L-only rate case expenses.
The Commission reviewed and evaluated all evidence provided and concluded that (1) KCP&L is allowed to recover the assessed rate case expense of $1,422,832 for CURB and Commission staff; (2) KCP&L did not present detailed, credible evidence to establish its management prudently incurred the entire $7.6 million rate case expense requested for KCP&L expenses in the proceeding; and (3) KCP&L is allowed to recover the original granted amount of $4.5 million from its ratepayers for KCP&L-only rate case. The total amount to be recovered from ratepayers is $5,922,832.
Chairman Sievers wrote a separate concurring opinion to express concerns about the incentives inherent in the regulatory process that inflate costs and flow those costs through to both customers and investors during difficult economic times.
Commissioner Loyd plans to file a separate concurring opinion on January 19, 2012.
A copy of KCP&L's application, supporting testimony, order and concurring opinions is available by visiting http://kcc.ks.gov, clicking "Docket Filings" on the left menu and entering docket number: 10-KCPE-415-RTS.