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Archive for Monday, February 6, 2012

Westar, KCC staff file settlement that would increase electric rates by $50 million

February 6, 2012, 8:54 p.m. Updated February 7, 2012, 9:15 a.m.

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— Westar Energy would receive a $50 million rate increase under a proposed settlement announced Monday.

The proposed agreement was filed by the staff of the Kansas Corporation Commission and Westar. It will next go to the three-member KCC for consideration.

David Springe, consumer counsel of the Citizens’ Utility Ratepayer Board, said that the settlement was too high and that CURB will fight it.

Westar had initially sought a $91 million electric rate increase. KCC staff had recommended a $33.6 million increase, while CURB recommended a rate decrease of $11.6 million by reducing shareholder profit and executive bonuses.

Officials with Westar, the state’s largest electric company in Kansas, had said the increase was needed to maintain a reliable system, comply with environmental regulations and keep its commitments to the employee pension system, which was hurt by stock market losses.

Under the proposed $50 million increase, approximately $41 million would be paid by residential and small business customers with the remainder spread to larger businesses.

The proposed agreement would also allow a 10 percent shareholder profit.

“If there is one thing we heard very clearly from Westar’s customers at the public hearings is that a 10 percent shareholder profit is simply unacceptable in these difficult economic times,” Springe said.

Springe urged customers to contact the KCC and ask them to throw out the settlement. The email address is public.affairs@kcc.ks.gov. Mail can be sent to Public Affairs and Consumer Protection, 1500 SW Arrowhead Road, Topeka, KS 66604-4027. Reference KCC Docket No. 12-WSEE-112-RTS.

Comments

FalseHopeNoChange 2 years, 1 month ago

My Nat gas generator is ready. I got chips too.

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ENGWOOD 2 years, 2 months ago

New enviromental regulations are going to bite you in the BUTT!!!! FUNNY!!!!!! Hello Jeffery EC................... Better start storing those cow chips. Love it !!!

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bobberboy 2 years, 2 months ago

Geeeezzzz State employees pensions were hurt the same way - why can't they raise taxes the same way Westar can just raise rates ? And all the time the higher ups are making a killing ! Our system is broke folks - all we have left to do is just decide when we want the end to come !

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drake 2 years, 2 months ago

You doofs keep piling on environmental restrictions and regulations and then cry when they have to raise your rates to comply. Priceless.

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Shane Garrett 2 years, 2 months ago

American Greed at work again. Think I'll stock up on candles and lamp oil.

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Richard Heckler 2 years, 2 months ago

I'd say take a close look at CEO and other upper management pay packages, pay out's to shareholders and golden parachute opportunities.

Also special interest contributions to politicians...

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defenestrator 2 years, 2 months ago

Here's the three KCC heads. Be sure to read the mission statement. http://www.kcc.state.ks.us/about/index.htm

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Lawrence Morgan 2 years, 2 months ago

Lawrence should have had its own electric power a long time ago.

Did they ever have their own electric power plant, like Baldwin still does?

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Lawrence Morgan 2 years, 2 months ago

Lawrence should have had its own electric power a long time ago.

Did they ever have their own electric power plant, like Baldwin still does/

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Richard Heckler 2 years, 2 months ago

That is a whopper of a tax increase.....

I've always been under the impression that corp america opposed tax increases.

Guess I've been living under an illusion. This is a $50 million tax increase any way you look at it.

A perfect example of privatization at work...

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Ron Holzwarth 2 years, 2 months ago

"The proposed agreement would also allow a 10 percent shareholder profit."

That is outrageous!

Prime Interest Rate: The Current Wall Street Journal Prime Rate is: 3.25%

January 25, 2012: The FOMC has voted to keep the target range for the fed funds rate at 0% - 0.25%. Therefore, the U.S. Prime Rate remains at 3.25%.


And the shareholders want a 10% return.

Maybe it's time to buy WS (NYSE), the current price is $28.81 per share.

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