At hearing, public speaks out against proposed Westar $152 million rate increase

A proposed $152 million Westar Energy rate increase that would cause residential customers’ fixed monthly energy cost to rise from $12 to $27 by 2019 was discussed at a public hearing Tuesday night in Topeka.

The fixed-rate increase is coupled with a decrease in customers’ per-unit rate, said Jeff Martin, Westar’s vice president of regulatory affairs. The proposal amounts to an approximate 7.9 percent increase, Martin said. A typical residential customer might expect a monthly bill increase of between $9 and $13.

Tuesday night, representatives from Westar, the Citizens’ Utility Ratepayer Board (CURB) and the Kansas Corporation Commission (KCC) opened the floor for public comment at Farley Elementary School in Topeka. At least a hundred members of the public attended the meeting, and the vast majority of attendees who spoke opposed Westar’s plan.

Because the KCC regulates public utilities, it must approve Westar’s proposal before any rate increase may take effect.

While the rate increase is meant for Westar to recoup plant upgrades and other expenses, Martin said the company’s new pay structure is meant to better reflect the costs of providing customers with electricity, regardless of how much energy they use.

“Many of the costs it takes to deliver electricity to your home are the same regardless of how much electricity you use,” Martin said. “The current pricing structure does not reflect the fixed costs required to serve each household.”

Submit comments

Members of the public who wish to submit comments to the Kansas Corporation Commission on the proposed Westar rate increase may mail letters to 1500 SW Arrowhead Road, Topeka, KS, 66604, email comments to public.affairs@kcc.ks.gov or call 800-662-0027.

In addition to the rate increase, how the proposal would affect customers who use solar power was also discussed at Tuesday’s meeting. While the rates of existing Westar customers who utilize solar panels will be grandfathered in, Martin said those who plan to use solar power in the future will be offered two distinct payment plans.

One plan charges customers based on their peak energy usage while the other charges a higher fixed fee and a lower per-unit charge, Martin said.

Aron Cromwell, CEO of Lawrence-based Cromwell Solar, said the two payment options, in effect, charge those who use less energy more money through the higher fixed costs, essentially discouraging the use of solar power.

Cromwell urged the KCC to have a third party conduct a study into the matter. Before Tuesday’s hearing got underway, about a hundred solar energy supporters gathered in front of the school to rally against Westar’s plan.

David Springe, consumer counsel of CURB, agreed with Cromwell, saying the KCC should set the company’s proposals for customers using solar power aside in order to gather more information.

In addition, Springe said CURB plans to argue against Westar’s proposal.

While increases are inevitable, Springe said the company’s request should be around $50 million and their fixed rates should change to reflect the new numbers.

“We’re tired of these constant and continual surcharges and increase,” he said.

Instead, Springe said Westar’s fixed-rate costs should increase to $14 a month and not grow beyond that.

Yvonne and David Grieger attended Tuesday night’s hearing to learn more about Westar’s proposal. The couple said they’re not on a fixed income, but they have a daughter who will soon be heading to college and they’re sure they’ll notice the price increase.

“(The increase is) 3 gallons of milk a month, and we drink a lot of milk,” Yvonne Grieger said. “We’re going to feel it in some form.”

Tuesday’s public hearing will be followed by another in Wichita on Thursday and an evidentiary hearing Aug. 17 in Topeka. In addition, the KCC will be taking public comments on the matter by mail, phone and email through Aug. 11. The commission has until late October to make a decision on the proposal.