The Kansas Corporation Commission (KCC) authorized Westar Energy to lower its Transmission Delivery Charge (TDC), which will result in savings to ratepayers.

The savings stem from a KCC complaint filed with the Federal Energy Regulatory Commission (FERC) in March 2015, alleging that Westar had over-earned on its transmission costs. FERC sets the rate of return for electric transmission costs. In March 2016, FERC approved a settlement agreement concerning the complaint, between the KCC and Westar Energy that lowered the company’s retail transmission revenue requirement.

Today’s order authorizes the reduction, and customers can expect to see this reduction reflected in their TDC line item charge within the next billing cycle. The reduction in the TDC is approximately $18 million over the next 12 months.

The average residential customer should see a reduction of approximately $1.50 on their TDC line item charge.