Kansas Property Tax Surcharge Overview

KCP&L pays property taxes as all businesses do, and the amount the company is required to pay varies each year.

The Property Tax Surcharge accounts for the property tax amount that is over or under what is already included in base rates for Kansas customers. Beginning in February 2012, this property tax amount will be shown on Kansas customers’ bill. During 2012, a typical residential customer using 1000 kWh of electricity will see about 57 cents per month on their bill for this item.

• The Property Tax Surcharge (PTS) on your bill is calculated by multiplying the PTS factor by the kilowatt hours (kWh) used during the month.



• The PTS factor is calculated by taking the impact of the annual difference (increase or decrease) in property taxes for the prior year from the amount included in base rates and dividing by the budgeted number of total kilowatt hours we anticipate will be used in KCP&L’s Kansas service area during the upcoming year.



• The Kansas Corporation Commission approved the PTS factor of $0.00057/kWh for February 1, 2012 through January 31, 2013.



• There is a true-up each year to ensure that the correct amount is collected or returned to customers. Any over or under collection is built into the next year’s PTS factor with true-up amounts collected/returned over the following 12-month period.