Oppose Westar electric rate hike

The Kansas Corporation Commission must judge Westar Energy’s latest rate case on its merits rather than on the public mood. But ratepayers have been saying something about rising electric bills that deserves to be heard: Enough.

Such sentiment motivated the usually deeply divided Sedgwick County Commission to unanimously pass a resolution Wednesday opposing the proposed $152 million rate hike. AARP Kansas and environmental groups also are fighting the proposal.

Kansans are reasonable people who understand that business costs go up regularly and must be passed along to customers. In this case, Westar is seeking the increases to do required environmental upgrades at the La Cygne coal power plant and extend the service life of the Wolf Creek nuclear plant. Experts say that under state regulatory law, some kind of hike is unavoidable.

But it’s not unreasonable to question whether Westar’s 22 rate hikes since 2009 have all been justified, or why Westar’s business model always seems to favor investors at the ever-growing expense of ratepayers.

According to the Citizens’ Utility Ratepayer Board, residential bills have risen more than 50 percent since 2009 in the Westar region that includes Wichita (and by 70 percent or more in Westar’s northern Kansas territory).

As part of its latest case, Westar proposes an average 7.9 percent increase for all customers and 12.1 percent hike for residential users, who would see a current $12-a-month charge steadily increase to $27 by October 2019.

“We are tired of these constant and continual surcharges and increases,” said David Springe of CURB.

The watchdog agency advocates the KCC knock down Westar’s hike to a total $50 million and limit the monthly residential charge to $14. CURB further proposes a shareholder return of 8.85 percent, rather than the 10 percent sought by Westar.

The rate proposal also includes some punitive changes affecting customers who want to install rooftop solar panels. The company argues it is leveling the playing field among customers, while solar advocates warn the new fee structure will kill the emerging industry in Kansas.

How the solar-power market fares in the rate case will be an important indicator of where renewable energy stands in the state, especially in the wake of the recent decision by the Legislature and Gov. Sam Brownback to replace the state’s renewable energy mandate with a nonbinding goal.

At Tuesday’s hearing in Topeka, dozens of people criticized the solar rate proposal and other hikes. After an informal question-and-answer session at 4:30 p.m. Thursday, the final public hearing will start at 6 p.m. Thursday at Wichita State University’s Hughes Metropolitan Complex, 29th Street North and Oliver, with video conferencing sites in Hutchinson and Pittsburg. The KCC will accept written and oral comments through Aug. 11, with a decision expected in October.

Kansans should speak out, and not surrender to the widely held assumption that the KCC will do whatever Westar wants.

For the editorial board, Rhonda Holman

This story was originally published July 22, 2015 at 7:06 PM with the headline "Oppose Westar electric rate hike."