Westar customers face record fuel costs, plus new request for rate increase

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.