Low fuel costs trigger slight electric savings

JEFFERSON CITY, Mo. — Kansas City Power & Light customers will soon be paying a little less to keep the lights on.

The Missouri Public Service Commission announced Wednesday that it has approved a request by the utility for a fuel adjustment charge reduction on monthly bills.

According to a commission release, the change reflects fuel and purchased power costs during the six- month period between June and November 2015.

The change goes into effect March 1 and will mean a decrease of approximately $1.76 a month for the typical residential customer in the L&P service territory, which includes Maryville, and approximately $2.42 a month for the typical residential customer in the MPS service territory (Kansas City).

KCP&L’s fuel adjustment charge, or tariff, 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.

Under current regulations, the company can recover most — up to 95 percent — of its costs, but not all, in an effort to “encourage conservation and prudence in fuel use.”

All charges resulting from the fuel adjustment clause must appear in a separate category on customers’ bills.

The commission release stated that adjustment charges are intended to help utility companies deal with volatility in fuel pricing, and that the tariff requires regular adjustments to reflect costs the company has incurred for fuel and for wholesale power purchased to serve customers.

KCP&L-Greater Missouri Operations Co. provides electric service to approximately 316,600 commercial and residential customers in the utility’s Missouri service area.