Regulators OK Westar fee cut; electric customers to see slight drop in their bills

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Westar Energy electric customers will soon start saving an average $1.50 on their monthly bills.

The Kansas Corporation Commission issued an order Tuesday authorizing Westar to reduce its Transmission Delivery Charge.

Tuesday’s order finalizes a settlement agreement reached earlier this year in a dispute over Westar’s transmission fees.

Transmission Delivery Charges, also known as TDLs, are governed by the Federal Energy Regulatory Commission, which determines how much profit utilities are allowed to make from their investment in transmission line infrastructure. The charges appear as a separate line item on customer bills.

Last year, KCC filed a complaint with FERC alleging that Westar had over-earned on its transmission costs. In March, FERC approved a settlement agreement in the dispute, and Tuesday’s order by KCC puts that agreement into effect.

The agreement will reduce Westar’s transmission charge by about $18 million over 12 months.

Westar, headquartered in Topeka, is the largest electrical utility in Kansas, serving about 700,000 customers in eastern and east-central Kansas, including Lawrence.

The company is currently in the process of being acquired by Great Plains Energy, the parent company of Kansas City Power and Light, subject to regulatory approval.