Kansas City Power & Light (KCP&L), a subsidiary of Great Plains Energy Incorporated, filed a rate increase request with the Kansas Corporation Commission (KCC) on Friday. The increase in service rates for the company’s Kansas service area would result in a revenue increase totaling $67.3 million, amounting to a 12.5 percent increase for the company. The price bump would add an additional $11.67 per month to the typical residential customer’s bill.
Reasons for the request include EPA-mandated upgrades to environmental equipment at KCP&L’s large La Cygne facility, a low-cost, coal-fired power plant in East Central Kansas. La Cygne will require these upgrades to legally continue operations after new environmental regulations become effective in June 2015.
Additionally, the rate increase would help offset costs associated with other infrastructure and system improvements deemed necessary to maintain overall reliability. Such improvements would include modernization of substations, upgrades at the Wolf Creek nuclear power plant, additional transmission lines, and the replacement of electric meters.
The utility previously announced a rate increase request for its Missouri service area in October 2015. The rate request process takes about eight months in Kansas, and new rates for the area are expected to become effective around October 1, 2015.