Changes Approved for KCP&L Charges
The Missouri Public Service Commission has approved a request filed by Kansas City Power & Light Company (KCP&L) to change the fuel adjustment charge (FAC) and area customers may see a slight decrease on monthly bills.
Two filings were recently made by KCP&L. In its first filing, the electric company proposed to adjust the FAC to reflect changes in its fuel and purchased power costs for the six month period July through December 2017.
The second filing was KCP&L’s FAC true-up, which indicates a residential customer using 1,000 kilowatts per hour of electricity a month, the FAC will drop by approximately $1.87. The change is expected to take effect on April 1, 2018.
A statement from the Missouri Public Service Commission (MPSC) says the FAC tariff allows the company to pass increases or decreases in its net fuel and purchased power costs to customers outside of a general rate case.
The FAC also allows the company to recover up to 95% of its costs, in order to encourage conservation in fuel use by the company. Any charges resulting from the fuel adjustment clause must appear in a separate category on customers’ monthly bills.
The MPSC says the fuel adjustment charges are intended to help companies deal with volatility in fuel pricing. The FAC tariff requires regular adjustments to reflect changes in prices the company has incurred for fuel and wholesale power purchased.
KCP&L serves approximately 272,800 customers in several counties, including Pettis, Johnson, Saline, and Lafayette.