Panel approves KCP&L increase
JEFFERSON CITY, Mo. — The Missouri Public Service Commission has approved a request filed by Kansas City Power & Light-Greater Missouri Operations Co. that will allow the utility to raise a portion of its electricity rate.
The increase relates to the “fuel adjustment charge” (FAC), which reflects fuel and purchased power costs during the six-month period between June 2014 and November 2014.
The FAC change takes effect in March and will mean increases of approximately $1.88 a month for a typical residential customer in KCP&L’s MPS service territory (Kansas City) and 94 cents a month in the utility’s L&P service territory (St. Joseph).
The fuel adjustment charge was authorized by the commission in 2007 and allows the company to pass increases or decreases in its net fuel and purchased power costs on to customers without a general rate adjustment procedure.
FACs let the utility recover up to 95 percent such costs, and any charges resulting from the adjustment must appear in a separate category on customers’ bills.
The idea behind fuel adjustment charges is to help utilities deal with volatility in fuel pricing.
KCP&L-GMO provides electric service to approximately 314,900 electric across northwest Missouri.
