Westar Energy customers are getting socked with record electricity-producing fuel costs at the same time the giant utility is seeking a $177.6 million rate increase.
"It's going to get brutal," said David Springe, chief counsel for Citizens' Utility Ratepayer Board.
Westar supplies electricity to nearly 700,000 customers, including Lawrence and much of eastern and south-central Kansas.
The cost that Westar pays for fuel to produce electricity is passed through to customers and makes up a portion of every monthly bill. That fuel charge is adjusted monthly.
For August, the fuel cost adjustment on customers' bills is 4.1 cents per kilowatt hour. For a residential customer using 1,200 kilowatts of electricity that would be a fuel charge of $49.20. Last August, that fuel charge was 1.59 cents per kilowatt hour. For the same customer, that would have totaled $19.08; which is $30.12 less than this August.
But Westar officials say the rising fuel costs are not their fault, and that the requested rate increase is a separate issue - based on work the company is doing to meet customers' growing energy needs.
"The fuel charge, unfortunately it is what it is right now," said Westar spokeswoman Karla Olsen.
Olsen said the fuel charge is increasing because of the increased costs of natural gas and transporting coal.
Westar has said its rate increase request is based on investments the company has made in new natural gas plants, wind energy and the costs of restoring service after the December 2007 ice storm. The company has stated it has spent $1.2 billion for new facilities, transmission lines and emission controls since its last rate increase in 2004.
Under Westar's rate hike proposal, electric rates would increase an average of 15 percent, which for residential customers in Lawrence would mean an average increase of nearly $10 per month.
Three public hearings are scheduled Sept. 2-4 before the Kansas Corporation Commission, which is required to issue a decision by Jan. 23, 2009. The three-member KCC could accept, reject or modify the rate request.
KCC Public Meetings
The Kansas Corporation Commission has scheduled three public meetings on Westar Energy's proposed $177.6 million rate increase. All meetings start at 7 p.m.
¢ Sept. 2 in Salina at the Holiday Inn Convention Center, Ballroom C, 1616 W. Crawford
¢ Sept. 3 in Topeka at the Kansas Corporation Commission, 1500 S.W. Arrowhead Road
¢ Sept. 4 in Wichita at Century II Performing Arts and Convention Center, Room 101 (Pearl Room), 225 W. Douglas Ave.
The KCC will accept written comments from Westar customers through Sept. 15. Comments should reference Docket No. 08-WSEE-1041-RTS and be sent to the Kansas Corporation Commission, Office of Public Affairs and Consumer Protection, 1500 SW Arrowhead Road, Topeka, KS 66604-4027. Comments may also be submitted by e-mail at public.affairs@kcc.ks.gov or by calling 1-800-662-0027.
Comments
LJWorld.com doesn’t necessarily condone the comments here, nor does it review every post. Read our full policy. Also, read about banned accounts and harassing comments.
hipper_than_hip (anonymous) says…
Coal is $6/ton plus $12/ton to deliver it to Lawrence. Has the price of diesel fuel for trains increased 257% in the past year? Since the natural gas for power generation is supplied thru pipelines, exactly what fuel cost related to it's delivery has been rising?
KUweatherman (Curtis Lange) says…
I believe it. My electric bill jumped $60 from last month.
countrygirl (anonymous) says…
Gotta pay for those lawsuits some how.
tolawdjk (anonymous) says…
XD40 quoth,"Natural gas prices are not regulated and will follow general commodity prices. Think oil. That's why its a bad idea to use it to generate electricity. Coal and nuclear are better fuels for making electricity."Four sentences and yet you still managed to use your first sentence to refute your last one.True, nat. gas prices aren't regulated. What makes you think coal and nuclear prices are that would make them better for electricity? Coal is a tradeable commodity, the price of which is dicted by the free market. Equally so, uranium, or have you not been following the increase in uranium mine speculation and permitting that has risen in the last three years along with the market price for that particular metal?No wonder Congress can't legislate its rear out of a paper bag when the masses that elected it can't even bother to educate themselves on an issue.Or are you advocating govt price fixing and subsidies on coal and uranium to artificially improve the cost benefit of using those fuels as power sources? Natural gas is a better energy source because in as little as six months you can have the appropriate permitting in place to allow construction to begin. Coal and uranium could be free and it would still take you 10 years to get out of the litigation involved and you still have no gaurentee of having the permitting in place. -That- is only one of many reasons why natural gas is a preferred energy source and thus commands a higher fuel cost.
tir (anonymous) says…
The main thing that I noticed about my bill this month was that the so-called "fuel charge" was higher than my actual "energy charge". The second thing I noticed was the insert about Westar asking for a 15% rate increase. To me it looks like they have already raised our rates, disguising it as a higher "fuel charge".
Clickker (anonymous) says…
True, nat. gas prices aren't regulated. What makes you think coal and nuclear prices are that would make them better for electricity? Coal is a tradeable commodity, the price of which is dicted by the free market.Yes, but nat gas rarely trades at BTU parity with coal, in fact, it hasnt since a few times in the late 90's in recent history. If we baseloaded gas plants, like we do coal plants, the price of gas would go thru the roof, as our supply in the short run is fairly fixed.
nickbundywestar (Nick Bundy) says…
In regards to the Wittig Comments - Westar, nor our regulators (KCC) would allow any costs to be passed on to consumers from this situation. It's our stockholders that bear the burden. Yes, it is costing more for fuel than last summer, the fuel costs have been on our bills since March 2006. Fuel cost history. http://www.westarenergy.com/corp_com/... Consider getting on average pay so that your bills are divided and you're not paying a large amount at once. http://www.westarenergy.com/corp_com/... Rate Case questions and Answers. http://www.westarenergy.com/corp_com/...
OnlyLawrenceRepublican (anonymous) says…
"In regards to the Wittig Comments - Westar, nor our regulators (KCC) would allow any costs to be passed on to consumers from this situation. It's our stockholders that bear the burden." Thanks. I really am tired of the blame it on Wittig argument, which is pure laziness. Jim Haines did wonders for reversing that company's fortunes. Bill Moore is unproven yet, but prior history provides no indication that he'll be the cause of any problems. The fact is, and you can ask Chief Counsel Mr. Springe on September 3 and he'll tell you the same thing, electricity prices are going up. Everyone wants wind, but no one wants to pay to back it up. No one wants coal, but everyone expects the lights to come on when they hit the switch. If you really want to argue Westar's request is too high, a valid point is for a lower return on equity based on their volumetric rate and the fact that demand is increasing.
jaywalker (anonymous) says…
It's not just Westar, if people are looking to place blame. I live in the southeast and just got notice from my util.co. that we're getting a 25% hike starting next month.
Ragingbear (anonymous) says…
Read the bill. The cost is not for energy, it is for things like the "fuel charge" and "customer charge" which translates into "We just made this up to charge you more money."
average (anonymous) says…
Around $55 went to $65, although my usage actually went down a little.
hipper_than_hip (anonymous) says…
Natural gas is too precious to waste on energy production. My stove, furnace, and water heater can't burn either coal or uranium. Natural gas should be saved for household consumer use.
taucetiman (anonymous) says…
hipper than hipyour prices are off ...a lot. Coal from the powder river basin which is the closest major source has risen from 10 to 15 dollars a ton and that as at the mine site, rail charges are also much higher (due to diesel costs) .
OnlyTheOne (anonymous) says…
I commented on this in a LTE a few months ago and everybody blew me off. Well, I tried to warn ya.He who laughs last laughs loudest and it's going to be Westar!
taucetiman (anonymous) says…
also this should be further argument against building new coal fired electricity plants. Demand for coal is going to continue to grow rapidly (for supply reasons--although the u.s. has plenty of coal in the ground there are not an abundance of active mines and the approval process takes time, and for supply reasons, such as coal-to-liquid fuel usage, a small but fast emerging segment of demand).Thus it makes more economic sense to invest in wind which has no fuel costs
eel (anonymous) says…
july 2007 = $108july 2008= $205$97
Daytrader23 (anonymous) says…
Time to buy your own wind and solar panels, yes they are affordable and yes they do work. www.windenergy.comwww.sunpowercorp.co... these two together you can sell your power back to the grid.
Ceallach (anonymous) says…
Egads, now I'm afraid to go home and open my electric bill :\
ENGWOOD (anonymous) says…
thank obama's mama kathy and her gopher ms parkinson
farmgal (anonymous) says…
$266. ! You people must live in mansions or have it set on 70 degrees. Mine was only $64., down 40 dollars from last summer at this time, because over-all, it's been a less brutal summer.
Rationalanimal (anonymous) says…
What happened to all that wind energy that is soooooo cheap that T-Bone was talkin about? Maybe we need to put windmills on the moon to catch all that space wind.
Rationalanimal (anonymous) says…
You green numbskulls fight new coal plants hundreds of miles away and then scratch your heads when high energy costs are passed on to you. In terms you can understand, karma.
Rationalanimal (anonymous) says…
But you're saving the planet so there is no reason to complain. You should all be happy to pay extra on your energy bill for such a good cause.Don't you just feel so good inside each time you open an energy bill or fill up at the pump knowing you saved the planet, helped solve the "global crisis," by fighting big oil and coal plants in Kansas? Aren't those gigantic wind mills Sebellius put up in centeral Kansas subsidized by surcharges to you just making you feel so smart right now?It's such a warm fuzzy feeling, isn't it?
twaldaisy (anonymous) says…
Except, Rationalanimal, none of that electric power was for Kansas. I believe it was for Colorado (who by the way because of their clean air laws would not let them build in their own state to help their own people) and for some other bordering state maybe OK. So none of that matters.
belexus73 (anonymous) says…
Any new investment in energy by a utility will cause a rate increase. Energy Efficiency will have the lowest increase, then wind, then natural gas (but watch out for the fuel charge afterwards), coal, solar thermal (where appropriate)followed by nuclear. Also, coal as a commodity is sensitive to world prices and right now American coal is being exported to Asia which is driving up the prices and will continue to do so. I think the key is not the rate as much is it your bill. Two months ago mine was 29 dollars even though the cost of fuel had gone up. I had actually given less money to my good friends at Westar by way of conservation and energy efficiency. It's the only short-term, cost-effective way to fight back. In a few years solar will be affordable the way the rates will continue to go up.
lawrenceks66 (anonymous) says…
Mine jumped to $297.00!! Guess it's time to turn it off and open up the windows ... unfortunately, both my kids have asthma so this creates yet another problem :(I don't understand how they have to raise the rates every other year. It's either electricity, gas or water. I and many of you didn't even GET raises this year and are struggling as it is. Adding another 15% is VERY upsetting. We just keep getting deeper and deeper in debt. I wonder how many people will end up paying their electric bills with high interest credit cards on top of that. I wish we could just go into our bosses offices and say .. "Hey .. you're gonna pay me 15% more. End of story!" and it would happen - now THAT would be sweet!
none2 (anonymous) says…
twaldaisy (Anonymous) says:Except, Rationalanimal, none of that electric power was for Kansas. I believe it was for Colorado (who by the way because of their clean air laws would not let them build in their own state to help their own people) and for some other bordering state maybe OK. So none of that matters.------------------------------------I think around 14% was earmarked for Kansas -- not 0%. Still that is a very pathetic number. If they were going to allow those plants to be built, they should have forbidden Sunflower to lockdown Kansas to just 14% of the energy generated.
nickbundywestar (Nick Bundy) says…
Information for connecting wind or solar to the grid if you're a Westar customer. http://www.westarenergy.com/selfgener...
bhenick (anonymous) says…
Some of you may remember Enron... what most of you probably don't know is that one of their few business units that actually MADE things was the electric utility in Portland.I happen to be from Portland, so I was on the spot when, immediately after the 2001 electricity crunch, PGE demanded (and was granted) the right to raise rates by 40%......In response to artificial amping of electricity contract prices by another of Enron's business units.So now I'm in Kansas, watching Westar insist on the privilege to do God-only-knows-what to our electricity rates.As they say: bend over, here it comes again. (I'd've just used the acronym, but the server seems to think it knows better than me what to do with acronyms, okayyeahwhatever.)Thieving bastards, the lot of them.
belexus73 (anonymous) says…
Just a reminder that the KCC will not necessarily give them all of what they are asking for. Past history has shown that Westar does not always get their way at the commission. However, any new source of power to benefit Kansas consumers will allow for a rate increase. The question will be the size of the increase. After this will probably be some transmission related rate requests in 2009 or 2010 and some energy efficiency (much cheaper than other rate requests will be) related rate requests from all the IOUs. Invictus the rate request would still be in effect if the related construction was non-environmental in nature, I mean, would Westar do those for free because they pollute?
snowWI (anonymous) says…
Hmm. KCP&L is in the process of building another huge coal fired plant in Platte County. With the commodity prices of coal increasing along with rail transport costs it does not sound like a very good idea now? Coal is not cheap anymore because we live in a very globalized economy with demand for resources increasing everywhere.