Aquila lowers rate request for Missouri customers

Company seeking $37 million in increases

? Aquila Inc. is seeking $37.1 million in rate increases from its Kansas City, Mo., and St. Joseph, Mo., customers — less than half of what the utility originally had sought from regulators, company spokesman Al Butkus said.

Aquila filed the request Tuesday with Missouri regulators, who still must approve it. The Missouri Public Service Commission’s staff and the Office of Public Counsel, which represents consumers in utility rate cases, have signed off on the deal.

Under the agreement, Aquila’s average Kansas City, Mo., area electricity customer would see an increase of $5.50 per month, or about 9 percent, and St. Joseph, Mo., customers would see an average increase of $3.16 per month, or about 5 percent.

In total, Aquila would collect an additional $37.1 million a year. It originally sought nearly $80 million in rate increases.

Nearly half of the money would come from a two-year charge reflecting higher energy costs, while the rest would come from a permanent increase in rates.

“The agreement balances the interests of our Missouri customers with the priorities of our investors,” Butkus said.

Aquila’s Kansas City, Mo., area customers would pay $30.6 million and St. Joseph, Mo., customers would pay $5.65 million. Aquila has some steam customers in St. Joseph, Mo., who would pay about an additional $900,000.

Aquila provides electricity and natural gas to customers in Colorado, Iowa, Kansas, Minnesota, Missouri, Nebraska, Michigan and Canada. It provides natural gas services in Lawrence.