Request for Westar probe pulled
Topeka ? Kansas’ biggest industrial electric customers withdrew a request Wednesday for an investigation of Westar Energy Inc.’s management and rates, citing the appointment of a new chief executive officer.
Jim Zakoura, attorney for the Kansas Industrial Consumers, asked the Kansas Corporation Commission to refrain from ordering a rate investigation to give Westar’s new management time to address the company’s financial situation.
The investigation request was part of KIC’s response to the KCC’s Nov. 8 order to Westar to restructure its operations and restore its financial stability.
Westar announced Saturday that Jim Haines had been hired to replace David Wittig as president, CEO and board member. Wittig had resigned a day earlier after having been placed on administrative leave without pay.
Wittig is facing federal bank fraud charges related to his personal financial dealings.
Haines was Westar’s chief operating officer until 1996 when he left to lead El Paso Electric Co. in Texas. Haines said his top priority is reducing Westar’s $3.6 billion debt. Westar serves 647,000 Kansas customers.
Zakoura wrote the KCC on Wednesday, saying that Westar needed to focus on its management transition and lingering financial concerns, rather than begin a new regulatory battle.
Rates remain an issue, Zakoura said, and may necessitate further regulatory review.
“Kansas Industrial Consumers continue to be of the opinion that the current retail electric rates of Westar … are not at levels that reflect cost of service,” Zakoura wrote.
KIC plans to revisit Westar’s rate structure during the first quarter of 2003 and will file a request for KCC investigation, if appropriate, Zakoura said.
Rosemary Foreman, spokeswoman for the KCC, said because Zakoura’s letter was sent after the deadline to ask for reconsideration of the Nov. 8 order, commissioners were obligated to consider KIC’s initial request for a rate and management review.
Commissioners have until mid to late December to decide whether to reconsider their restructuring order, Foreman said.







