KCC rejects $93 million Westar Energy rate hike
The Kansas Corporation Commission has denied a request from Westar Energy that would’ve cost its customers about $93 million.
The request called for Westar’s customers to bear the cost of the company’s seven-month lease and subsequent purchase of an 8-percent interest in Jeffrey Energy Center (JEC), located near St. Mary’s.
“Had it been approved, the cost to ratepayers would have amounted to approximately $93 million in increased rates over the next 15 years,” the KCC explains.
In rejecting Westar’s request, the KCC says Westar failed to meet its burden to show that the lease and purchase agreement “was a prudent decision for its retail customers and that Westar entered into the agreement knowing it did not need the 8 percent portion of JEC to satisfy its capacity requirements and the settlement agreement would increase customers’ rates.”
Prior to Westar’s August purchase of the 8-percent interest in JEC, Westar and Kansas City Power & Light owned 92 percent of the center. Midwest Power Company owned the remaining 8 percent and leased that percentage to Westar, the KCC explains.
“The lease and purchase agreements both expired on Jan. 3, 2019. Westar then opted fro a new lease and subsequent purchase of the 8 percent and asked the Commission to approve the recovery of costs through its Retail Energy Cost Adjustment (RECA) which is included in customer rates,” the KCC says.
Source: KWCH 12 TV Wichita, Kansas.
More Top Stories
U.S. President Donald Trump was scheduled to meet with his top law enforcement officer behind closed doors on Monday as cities nationwide awoke from a …read more
New York Governor Andrew Cuomo on Monday called for a national ban on chokeholds and excessive force by police and said he was concerned violent …read more
Gilead Sciences Inc on Monday reported that its antiviral drug remdesivir provided a modest benefit in patients with moderate COVID-19 given a five-day course of …read more
With cities across the United States in turmoil over the death of George Floyd, a U.S. lawmaker plans to introduce legislation this week to eliminate …read more
An active duty military police battalion consisting of 200 to 250 military personnel is now in the process of deploying to Washington, DCread more