Customers of Wester Energy Inc., the state’s largest electric company, probably are pleased but maybe a little puzzled by the rate compromise announced last week by Westar, the Kansas Corporation Commission and the Citizens’ Utility Ratepayers Board.

The electric company initially had sought to increase its rates enough to bring in an additional $152 million a year but now has decided it can settle for an overall increase about half that big: $78 million. That’s more than the $56 million increase favored initially by CURB and the KCC, but represented what CURB’s chief attorney called “a pretty decent deal” for Kansas customers.

The difference between what Westar started out asking for and what it eventually found acceptable may raise some eyebrows. The company said it needed $152 million to cover its costs for work that already has been completed at the LaCygne and Wolf Creek power plants and to provide $220 million over the next five years for upgrades to its electrical grid. However, at the end of the negotiations, Westar said the $78 million still would allow it to recover the power plant costs and to invest about $50 million in the grid.

So, how much was Westar padding its request? Over five years, the $152 million increase would have amounted to $760 million in additional funds, compared to the $390 million provided by the $78 million increase. That’s a difference of $370 million, and yet the company said it would only have to reduce the amount going to grid improvements by about $170 million. Where was the other $200 million going? A lot of that $40 million per year probably would have gone into shareholders pockets. Westar reported total earnings of $313 million ($2.40 per share) last year, up from $293 million ($2.29 per share) in 2013.

The rate compromise still must receive final approval from the KCC, but the tentative agreement points out the important role that the KCC and CURB play in protecting the interests of utility consumers in the state. To stay in business, companies like Westar need to be allowed to recover their costs and provide a reasonable return to their investors. It’s in the company’s interest to maximize its profits, but it’s the responsibility of the KCC to make sure the company isn’t reaping unreasonable profits through unreasonably high electrical rates.

Most Kansans probably don’t know much about the KCC and CURB, but the Westar “compromise” announced last week perhaps should trigger a greater appreciation for the role those agencies play.