Press Release from the Kansas Corporation Commission
Topeka, KS - The Kansas Corporation Commission (KCC) issued an order Thursday, February 11th approving a $4,819,343 increase in rates for customers of Wheatland Electric Cooperative.
“The Commission finds that after balancing all the interests impacted by this proceeding, and having considered the comments received by the Commission, the unanimous S&A [stipulation and agreement] reached by the parties is in the public interest and should be approved,” read the order.
Included in the $4.8 million rate increase is a power cost adjustment (PCA) of $0.0622 per kilowatt hour to be embedded in base rates. The power cost adjustment will allow Wheatland to pass through changes in wholesale power costs from their power supplier, Sunflower Electric Power Corporation, on a monthly basis.
Wheatland filed an application for a $7.7 million (12.3 percent) rate increase on March 2, 2009, and a unanimous settlement agreement was filed on August 20, 2009 in which the parties agreed to a significantly reduced $4.8 million rate increase.
“The S&A reduced the amount of Wheatland’s requested revenue increase to a reasonable level and lowered the increase ratepayers will have to pay.” The order continued: “At the same time, the S&A provided Wheatland with sufficient revenues and cash flows to meet its financial obligations and provide reliable service.”
Wheatland elected to file its application under certain regulatory provisions available for the benefit of small rural electric distribution cooperatives. As part of that process, the Commission issued an order on September 9th setting interim rates based upon the unanimous settlement and opening up a 90 day comment period to allow customers to submit comments in support of or in opposition to the rate increase.
A hearing was held on January 12, 2010, in order for the commissioners to hear testimony in support of the agreement and in response to the comments received by the Commission. Having considered the comments and the testimony at the hearing, the Commission found that further investigation was not warranted.
Based on the terms of the agreement, Wheatland was allowed to implement the rate increase in two phases. Phase one went into effect upon the issuance of the interim order. Phase two will go into effect one year later, on September 10, 2010. Overall, the average residential customer will see an increase of 7.3% or $6.62 a month.
Wheatland’s last rate case was in 1988. Since that time, the cooperative has incurred significant cost increases and changes to customer classes and cost structures, resulting in the need for increased revenue and changes in rate design.
A copy of Wheatland’s application, supporting testimony, the settlement agreement, and the order is available at: http://kcc.ks.gov/docket/cal.cgi?docket=09-WHLEE-681-RTS.
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