KCP&L GMO Rate Increase and Rate Consolidation

Commission approves rate increase and rate consolidation for Greater Missouri Operations (GMO) customers.

On September 28, 2016 the Missouri Public Service Commission (MPSC) approved a settlement in the rate increase request for KCP&L-Greater Missouri Operations (GMO). This approval authorizes a rate increase of 0.41% for our KCP&L-GMO customers. In addition, it combines two rate jurisdictions in that service area (MPS and L&P) into one. The new rates are effective as of February 22, 2017.

As a regulated utility, if our costs indicate that we need to ask for a rate change, we do so by filing a request to the MPSC for review and approval. 

This process, which began in February 2016, provided an opportunity for the Commission to audit the filings and allow customers and other interested parties to ask questions and submit comments about the requested change. For a full look at the rate-making process click here

 

Why did KCP&L file to change its GMO rates?

KCP&L filed the request with the MPSC to increase base rates for Missouri customers living in its KCP&L Greater Missouri Operations (GMO) service area as a condition to continue utilizing its Fuel Adjustment Charge (FAC). Consistent with the terms of the FAC, a rate case must be filed every four years to allow a full review of the Company’s costs.

KCP&L requested the rate increase for:

  • 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

Why did KCP&L file to consolidate the GMO rate jurisdictions?

As part of the rate case filing, KCP&L requested to combine the two jurisdictions in the KCP&L Greater Missouri Operations Company area (MPS and L&P).

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 uniform rates for the GMO service area. That study was completed and indicated that consolidation may be reasonably accomplished. The consolidation was requested in this case.

Residential and business customers in KCP&L’s GMO service area will each be impacted differently by this 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 were 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 helps to streamline customer service.

For residential and smaller business customers, the consolidated rate design 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 will 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 these new 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 consolidated rate structures are effective as of February 22, 2017 as well.