Westar, Midwest deal partly approved

? State regulators have approved Westar Energy Inc.’s sale of its central Kansas territories to Midwest Energy Inc., but also rejected part of the two companies’ deal.

Westar had planned to sell the territory and the related assets for $33 million, or $12.5 million more than the value of the property. The territory includes about 10,000 customers in Ellsworth, Rice, Pratt, Reno, Barton, Stafford, Edwards and Pawnee counties.

The Kansas Corporation Commission concluded the sale would be in the public interest and approved it. But the KCC rejected a proposal to allow Westar to use all but about $201,000 of its profits to reduce its $3.2 billion in debt.

The KCC said about $6 million should be returned to ratepayers. To do otherwise, the commission said, would require those ratepayers to subsidize Westar’s nonutility operations, which incurred much of the company’s debt.

Westar spokeswoman Karla Olsen said Thursday the company was reviewing the KCC’s order, which was issued Wednesday, and would not speculate on whether the KCC’s stipulation would derail the deal.

Commissioners acknowledged the amount shared with ratepayers might be small but added, “the commission has consistently stated that ratepayers should not bear the burden of Westar’s nonutility businesses and losses.”