Fuel Surcharge Increases KCP&L Bills

Liberty Tribune, August 31, 2013

The Missouri Public Service Commission has approved a request filed by KCP&L-Greater Missouri Operations Co. to change the fuel-adjustment charge on the monthly bills of its electric customers.

The FAC change reflects fuel and purchased power costs during the six month period December 2012 through May 2013. It also reflects the company’s annual FAC true-up. In that filing, GMO stated the true-up reflects an under-collection of approximately $314,400 from customers in the MPS rate district (Kansas City area) and an under-collection of approximately $357,600 from customers in the L&P rate district (St. Joseph area).

The change in the FAC will take effect Sunday, Sept. 1. It will mean an increase of approximately $0.78 a month for the average residential customer in the territory served by MPS and an increase of approximately $1.29 a month for the average residential customer in the territory served by L&P.

The fuel adjustment charge was authorized by the Commission for KCP&L-GMO in a regular rate case in 2007. The FAC tariff allows the company to pass increases or decreases in its net fuel and purchase power costs to customers outside of a general rate case.

The FAC allows the company to recover most — up to 95 percent — of its costs to encourage conservation and prudence in fuel use by the company. Any charges resulting from the fuel adjustment clause must appear in a separate category on customers’ bills.

Fuel adjustment charges are intended to help companies deal with volatility in fuel pricing. The FAC tariff requires regular adjustments to reflect changes in prices the company has incurred for fuel and for wholesale power purchased to serve customers.

KCP&L-GMO provides electric service to approximately 312,700 electric customers in Missouri.

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