Dive Brief:
- Kansas regulators have approved a $78 million rate increase for the state's largest utility, Westar Energy, raising typical customer bills up to $7 per month.
- But the Kansas Corporation Commission tabled discussion on Westar's proposal for additional fees on solar customers, saying it was address how to value rooftop solar in a future proceeding.
- The decision raises customers' fixed monthly charge from $12 to $14.50, but Westar had asked regulstors to bump it up to $27 over the next four years.
Dive Insight:
A settlement between state regulators, consumer advocates and Westar Energy has resulted in a $78 million rate increase and a bump in monthly charges, but the utility will not get extra fees on customers with solar panels, as it had requested.
According to The Topeka Capital-Journal, Citizens’ Utility Ratepayers Board attorney David Springe said that "in perspective, the settlement was good for consumers versus what Westar was asking for."
The increase will add between $5 and $7 to typical residential customers' monthly bills.
The solar fees Westar had proposed will be put off until the issue comes before the commission more broadly.
Westar had requested a 7.9% increase, or about $152 million. According to the utility, the higher revenues would reflect costs of mandated environmental upgrades to comply with clean air regulations, life-extension improvements to Wolf Creek Nuclear Generating Station and investments to protect the grid against power outages.
Seeking to modernize the grid, the KCC also allowed Westar to secure $50 million for grid work through 2020, though the utility had asked for $220 million. Westar has 7,200 MW of generation on its system and serves almost 700,000 customers.
