KCP&L rates go up this September — and another rate hike could be on the way
Get ready to fork over more cash on your monthly electric bill.
The Missouri Public Service Commission approved a rate hike for KCP&L on Wednesday that will cost residential customers an average of $12.82 a month starting in September.
The total increase will be about $95 million for KCP&L.
And another rate increase may be on the way. The concurring opinion written by the commission’s chairman, Robert M. Clayton III, says:
Rate payers should be aware that these increases are not the last in
the foreseeable future considering that in 2010, it is planned that
nearly the entire investment in Iatan 2 will be placed into rate base
causing another potential rate increase. Large investments in plant which are necessary for the provision of service result in significant rate increases
Clayton acknowledged that the just-approved increase is “significant” and the impact on customers “is not to be taken lightly,” but he also noted that there was “little choice but to approve the agreements.” Clayton wrote in his opinion:
These rate increases are not simply raising the return or profit margin
allowed to the company but instead represent significant investments in
plant that will benefit the public and the environment through
reductions in emissions. Environmental mandates have required the
investment in infrastructure that will improve the air quality in the
vicinity of these facilities.