Topeka ? Westar Energy on Friday announced it was suspending plans for 200 megawatts of wind power because of the Kansas Corporation Commission’s ruling on its wind proposal.

“We are concerned that the KCC decision introduces uncertainty as to how wind investments might be regulated in the future, increasing their risk and inhibiting such development,” said Bill Moore, Westar’s president and chief executive officer.

On Thursday, the KCC said Westar’s wind plan was “prudent” but declined to approve Westar’s request for a 1 percentage point increase in its rate of return as an incentive. The commission said the uncertainties of investing in wind power shouldn’t be passed on to the ratepayers.

Westar, the largest utility in Kansas, said it would proceed with its immediate plan to produce nearly 300 megawatts of wind power.

But because of “regulatory uncertainty” it will suspend plans for an additional 200 megawatts by 2010.

Moore said the KCC order also opened the door for possibly tougher standards and financial penalties than has been imposed on other forms of power.

“We don’t see the order encouraging the further development of wind energy in Kansas,” Moore said.

Under Westar’s plan to produce 300 megawatts, about half would be purchased from other power producers and the other half would be generated by Westar-built wind farms.

The KCC said the actual cost to construct wind farms would be allowed in Westar’s rates. Any cost in excess would be subject to further review, it said.

The KCC also said Westar would be allowed to recover the costs of purchasing wind power. It also said it would review Westar’s operations of its wind assets and make financial adjustments if the company had not maintained its wind facilities appropriately.

The Citizens’ Utility Ratepayer Board, which represents consumers, wanted the KCC to approve only Westar’s purchase of wind power, saying that building wind farms exposed ratepayers to too much risk. But CURB said that overall, the KCC decision was fair.