Rate Update Request & Bill Credits

Find out information about Kansas rate updates and bill credits.

Rate Updates 

In 2018, the Kansas Corporation Commission (KCC) approved rate updates for KCP&L Kansas. This update includes savings related to the 2018 merger with Westar Energy and new lower federal tax laws.

What savings and credits were factored into the rate update?

For Kansas residential customers, this will result in the following annual base rate decreases starting December 20, 2018

  • $1.0 million annual base rate reduction (or around $0.40 savings a month on your energy bill), including $7.5 million in merger savings
  • $2.8 million in savings passed along to customers as a merger credit, equaling savings of $16.89 up front and $6.34 annually for the average residential customer

Additionally, we're passing along 100% of savings from the Tax Cut and Jobs Act, decreasing the corporate tax rate from 35% to 21%, which results in the following:

  • $36.3 million in tax reductions, which will result in about $81.61 in savings for the average residential customer

What is the Merger Savings Credit?

This credit is one way customers are benefiting from the merger between Great Plains Energy (the parent company of KCP&L) and Westar Energy, and the efficiencies we expect to obtain through being a larger, combined company. These savings are being passed to KCP&L-KS customers through a one-time credit and subsequent annual bill credits. Learn more about merger credits

Both the initial one-time credit and the 2019 annual credit will be applied at the same time and appear on February bills as separate line items. The annual bill credits for 2020 – 2022 will be applied on bills by March 31 of each year.

What is the Tax Cut & Jobs Act credit?

In January 2018, the federal government reduced corporate tax rates as part of the Tax Cut & Jobs Act, which decreased the corporate tax rate from 35% to 21%. We’re passing along 100% of those savings to KCP&L-KS customers through a one-time credit in February 2019 bills. It reflects savings from January 2018 through implementation of new rates, which include the impact of the tax savings going forward.

Who will receive the merger and tax cut credits, and how will customers know what the credits are?

The credits will post on February bills in the Other Transactions Section and will be titled “Merger Savings Credit”, “Merger Savings Credit (annual)” and “Tax Cut & Jobs Act Credit.” Customers also will be advised via the following bill message:

  • If you were an active KCP&L-Kansas electric utility customer as of Dec. 31, 2018, you received two Merger Savings Credits and a Tax Cut & Jobs Act Credit. See kcpl.com/rateinfo for details.

How much will bill credits total on Kansas residential bills in February 2019?

All residential accounts that were active as of Dec. 31, 2018, will receive these credit amounts, minus any applicable sales tax or franchise fees:

Credit Type

Avg. Residential Impact

Up-front merger

$16.89

Annual merger

$6.34

Tax cut

$81.61

TOTAL:

$104.84

For non-residential customers, the credit varies based on the electric service billed over the twelve-month period ending Dec. 31, 2018.

What else changed with the rate update?

This is how we're investing to enhance your customer experience:

  • new customer information system, so we can ensure improved, consistent and more efficient customer communications where you receive information about energy solutions with ease.
  • Budget- and environmentally-friendly options, so you can better manage your personal energy usage needs and access renewable energy, including Solar Subscriptionproviding the community access to solar energy (no rooftops required). 

The KCC also approved new rate plan offerings and programs.

What are the new rates?

A Distributed Generation (DG) rate will go into effect for customers who installed DG after Dec. 20, 2018 and pay a demand component on their bills to better align charges with costs to serve those customers. Those DG customers will pay less for their actual energy consumption (per kWh) than they were previously, and depending on their demand, can still receive notable monthly energy savings. Customers with DG systems before Dec. 20, 2018 are not impacted by this change. For more information, view our DG FAQs

Additionally, the Customer Charge for all KCP&L Kansas residential customers is $14.25 (up from $14). Here are the Energy Charges:

Energy Charge

General Use: 2RS1A

Electric Heat: 2RS6A

Summer

May 16 - Sept. 15

All kWh

$0.10677

$0.10677

Winter

Sept. 16 - May 15

First1,000 kWh

$0.08243 (all kWh)

$0.07423

Over 1,000 kWh

$0.06524

Head here for more info on understanding your bill or view updated Kansas rates here