KCP&L Rate Increase Request: KCP&L - GMO

KCP&L requests rate increase for Greater Missouri Operations (GMO) customers.

KCP&L has filed a request with the Missouri Public Service Commission to increase base rates for Missouri customers living in its KCP&L Greater Missouri Operations (GMO) service area. 

KCP&L is requesting to combine the two jurisdictions in the KCP&L Greater Missouri Operations Company area (MPS and L&P) and is requesting an 8.2% rate increase. Part of this is an increase to the Customer Charge* to $14.50 a month. Currently, this charge is $10.43 a month in MPS and $9.54 a month in L&P for residential customers. For an average residential customer**, this would result in an additional $9 each month, if approved. The rate request process in Missouri involves many steps and takes about 10 months to complete. This means that any rate increases will be effective December 2016.

Why KCP&L Is Requesting an Increase

KCP&L is requesting the rate increase for a few reasons:
  • Infrastructure investments made to maintain electrical reliability and modernize the grid
  • System improvements to enhance customer service
  • Upgraded power plants to provide cleaner, reliable power
  • Additional regional transmission lines to transport renewable energy

Rate Consolidation

In a prior rate case (ER-2012-0175), the Missouri Public Service Commission approved a plan to perform a comprehensive study on the impacts of eliminating separate MPS and L&P rates and implementing company-wide, uniform rates. That study was completed and indicated that consolidation may be reasonably accomplished. The consolidation has been requested in this case.

Residential and business customers in KCP&L’s Greater Missouri Operations service area will each be impacted differently by this proposed rate consolidation. The impact could be higher or lower than the requested increase and will be based on how much energy a customer uses and how that use is treated within the new combined or consolidated rate structure.

Customers would be individually evaluated and assigned to the rate that best fits their situation and minimizes the annual amount they would pay. Rate consolidation offers common pricing across the areas served by GMO and will help streamline customer service.

For residential and smaller business customers, the consolidated rate design proposed by KCP&L has a customer charge and energy charges. Typically, energy charges are higher in the summer months than the winter months, because customers tend to use more electricity in the summer.

For larger commercial and industrial customers, KCP&L is proposing to use a four-part rate. The four parts—customer charge, facilities charge, demand charge and energy charge—provide more detail and transparency to customers about the elements that comprise the cost of providing electric service.

Under the proposed rates, managing your summer usage, particularly for most commercial and industrial customers, is important to managing your bill through the remainder of the year.
 
The Customer Charge is a fixed monthly charge that includes the cost to provide service for each customer. 
** An average residential customer is defined as using 1112 kWh per month in the summer and 744 kWh per month in the winter.

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