Regulators weigh in on Westar’s rate plan

State officials urged to decrease rates

? Regulatory staff and consumers on Friday urged that state officials decrease Westar Energy rates.

Westar Energy, the largest electric utility in Kansas, is seeking an $84.1 million increase.

Westar has divided its rate increase request into two service areas – the northern area, which includes Lawrence, and the southern area, which includes Wichita.

Westar wants a $47.8 million increase in the north and a $36.3 million increase in the south.

But various parties in the rate case weighed in before the Kansas Corporation Commission recommended decreases.

The KCC staff recommended an $11.1 million increase in the north but a $41.5 million decrease in the south for an overall reduction for Westar.

The Citizens’ Utility Ratepayer Board, which represents residential and small customers, recommended a $5.9 million decrease in the north and a $42.1 million decrease in the south.

And, the Kansas Industrial Customers Group recommended a $2.1 million increase in the north and a $43.8 million decrease in the south.

Westar spokeswoman Gina Penzig said the Topeka-based company was analyzing the various recommendations. Westar has until Oct. 3 to submit rebuttal testimony to the KCC.

“We know our filing was based on sound numbers and what’s required for us to be successful as a stand-alone utility,” Penzig said.

The three-member KCC is holding several public hearings on Westar’s rate request. The next one is Sept. 26 in Topeka.

David Springe, consumer counsel for the Citizens’ Utility Ratepayer Board, said one of the major differences between the customer and Westar recommendations is that the customers don’t believe Westar should be allowed its requested 11.5 percent shareholder profit.

CURB has recommended 8.75 percent. “… Our financial expert believes that the company’s requested rate of return is way out of proportion to returns for similar electric companies,” Springe said.

CURB also opposes Westar’s proposed Energy Cost Adjustment, which would allow the company to pass through to customers the costs of fuel and purchased power.

Springe said the adjustment would unfairly shift the risks of investment, such as volatile fuel prices, from the shareholder to the ratepayer.