The requests, which are subject to regulatory approval, are expected to take effect in May 2011. If approved, a typical Missouri residential customer’s rates will increase by an average of 14% or less than $15.00 per month.
The rate jurisdiction areas include: the area served by the former Aquila Missouri Public Service division and the area served by the former Aquila St Joseph Light & Power division. KCP&L Missouri customers (not in former Aquila service territory) are also included under the rate jurisdiction.
The rate increase requests filed represent the final of four rate cases filed as part of the Comprehensive Energy Plan. Prior to the plan, KCP&L had not asked for a rate increase in approximately 20 years.
KCP&L said that under the five-year plan, it will have spent more than $2.1bn to complete capital projects. Key accomplishments include new clean coal and renewable generating capacity, environmental upgrades to existing facilities, transmission and distribution improvements, and energy efficiency customer programs.
According to the company, the primary reason for the rate increase requests is Iatan 2, an 850MW coal-fired power plant that is expected to be fully operational in late 2010. Another component of the rate increase requests includes costs related to the mandated environmental upgrades at KCP&L’s Iatan 1 power plant.
The rate increase requests also include costs related to infrastructure projects that are necessary to maintain system reliability and costs unrelated to the Comprehensive Energy Plan.
The cases include increased freight costs for the transportation of coal to several of the company’s power plants. Finally, costs related to renewable energy projects, including solar and wind projects, are included in the rate increase requests.
