Editorial: Rising rates

Kansans may soon see yet another increase in their electrical bills.

Lawrence Journal-World opinion section

Westar Energy has been making news recently — some of which may not be good for the company’s customers.

The Topeka-based electrical utility reportedly is evaluating options for its future, including the possible sale of the company. News that Westar might be looking for a buyer caused the company’s stock to jump to an all-time high late last week.

What may be of even more interest to the utility’s 700,000 Kansas customers, however, is a rate increase request that’s pending before the Kansas Corporation Commission.

The request would raise the Westar transmission rate by 31 percent, about $4 a month, for residential customers. Schools would see a 29 percent increase in the rate, while businesses would see reductions ranging from 1 percent for mid-sized businesses to 21 percent for small-business customers.

The rate increases, which would generate an additional $25 million for Westar, are proposed to take effect on April 1. That’s only about seven months after a general rate increase approved in September that brought in an additional $78 million for the company. According to news reports, the transmission charge currently provides an 11.3 percent profit for Westar stockholders.

No wonder the stock price is going up.

The KCC may consider the rate case later this week, and it will be interesting to see how Kansas consumers are represented in the proceedings. The Citizens’ Utility Ratepayer Board was created by state statute to represent consumer interests, but the board has been experiencing significant turmoil since the resignation in December of its longtime consumer counsel, David Springe.

Board members discussed a different mission for CURB and fired its interim counsel over disagreements about the duties of that job. In late February, the board announced the hiring of a new consumer counsel but still is advertising for two other key jobs on its small staff: a staff attorney and a regulatory accountant/economist. The new consumer counsel, David Nickel, served as legal counsel for the KCC and worked for a Wichita law firm that specializes in oil and gas law before taking the job at CURB.

Hopefully, Nickel has had enough time to get up to speed on the Westar issues and will provide some meaningful advocacy on behalf for Kansas consumers. Customers have a right to be concerned especially about another Westar request coming so soon after September’s increase.