Wichita — Wichita has taken the next step in its plans to set up a municipal electric utility by trying to take ownership of KGE's power lines.
The City Council unanimously agreed this week to spend up to $100,000 in consulting fees just to negotiate the purchase of the lines.
A consultant's report released last month said Wichita ratepayers would save $654 million in the next 20 years if the city starts its own utility. That would involve buying KGE's distribution system for an estimated $323 million.
KGE believes its distribution system is worth double that, said company spokeswoman Karla Olsen McCartney.
"We believe we will continue to be the safest, most reliable provider of electricity for the city of Wichita," she said.
KGE customers in southern Kansas pay about 25 percent more for power than customers of KPL, its sister company in the northern part of the state. The city has attempted unsuccessfully to get rate relief from state and federal regulators.
City natural resources director Joe Pajor said it is difficult to say how long negotiations might take.
If no agreement is reached, the City Council will have to decide whether to pursue a process similar to condemnation to acquire KGE's system.
McCartney said it would be speculation to say whether the company is willing to negotiate. "We have not seen an offer," she said.
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