KANSAS CITY, Mo.--(BUSINESS WIRE)--KCP&L and KCP&L-Greater Missouri Operations Company (KCP&L-GMO), subsidiaries of Great Plains Energy Incorporated (NYSE: GXP), recently requested rate updates for their Missouri customers. The requests will update rates for several customer experience enhancements, including technology and green initiatives. Additionally, the companies are asking to pass along to customers 100% of the savings resulting from the Tax Cut and Jobs Act. This will result in approximately $65 million in savings for customers in Missouri. KCP&L will make a similar request for Kansas customers later this spring.
Once savings from the Tax Cut and Jobs Act are taken into account, KCP&L is requesting approximately a 1% rate increase to its base rates for KCP&L-Missouri customers. For KCP&L-GMO customers, the company is requesting approximately a 0.3% rate decrease to its base rates. Additionally, the companies have asked the Commission to continue reflecting fuel and purchased power increases and decreases in its Fuel Adjustment Clauses (FAC) on customer bills. KCP&L’s and KCP&L-GMO’s FACs in Missouri get reset in each rate update proceeding. In this rate update case, the FAC will result in an additional 1% increase for KCP&L-Missouri customers and slightly more than a 3% increase for KCP&L-GMO customers.
The rate update process takes approximately 11 months in Missouri, so any resulting rate changes would be expected to be effective in late December 2018. If the rate update is approved as filed, the average residential customer* living in the KCP&L-Missouri area would see an approximately $3 per month change and an approximately $2 per month change for customers in the KCP&L-GMO area. To better understand the areas impacted by this rate update request, please visit www.kcpl.com/servicearea.
In the last few years, KCP&L has worked to bring innovative energy solutions to its customers. Many of these solutions allow customers the flexibility to manage and receive information about their energy usage in a way that fits their needs, whether in-person, online or over the phone. One notable project that provides this for customers is KCP&L’s new customer information system, which will be launched later in 2018. This system and its related technologies ensure improved, consistent and more efficient customer communications. In other words, customers want to hear from KCP&L in helpful and relevant ways; these new systems help meet that customer need. The new customer information system includes cyber security upgrades to protect customers’ personal information.
“We know our customers want information about programs and services that help them save money as well as tools that help them make informed decisions about their energy usage,” said Terry Bassham, KCP&L President and CEO. “These technology enhancements deliver what customers want: The information they need, when and where they want it.”
In addition to technology enhancements, KCP&L is also investing in sustainable ways to deliver electricity to customers. One such project is the KCP&L Clean Charge Network, KCP&L’s electric vehicle charging program. This network has made the region the fastest growing for electric vehicle adoption in the country. Additionally, the Clean Charge Network is making the air cleaner for everyone living and working in the area.
KCP&L is also requesting several additional ways for customers to power their homes and businesses with renewable energy. Today, approximately 17% of KCP&L’s generation capacity comes from renewable sources like wind and solar and nearly 43% of the energy used to meet KCP&L’s retail energy demand is carbon-free. If approved, the proposed Renewable Energy and Solar Subscription programs would provide customers with options to directly subscribe to receive renewable energy to offset the energy they use each month.
“Our customers expect renewable energy to be a part of how we power their lives,” said Bassham. “Whether it’s electric vehicles or delivering new ways to access renewable energy, we are committed to sustainable solutions to meet our customers’ energy needs, now and into the future.”
Most of the customer bill impact of the costs associated with these investments is largely offset by the federal tax savings. However, KCP&L offers several resources to help customers who struggle to pay their electricity bill and partners with community agencies as well. Visit our billing and payment options online or contact KCP&L at 1-888-471-5275 to discuss available payment options.
For more information on this rate update request, visit www.kcpl.com/MORates.
* An average KCP&L-MO residential customer is defined as using 1,037 kWh per month in the summer and 684 kWh per month in the winter. An average KCP&L-GMO residential customer is defined as using 1,154 kWh per month in the summer and 749 kWh per month in the winter.
About Great Plains Energy:
Headquartered in Kansas City, Mo., Great Plains Energy Incorporated (NYSE: GXP) is the holding company of Kansas City Power & Light Company and KCP&L Greater Missouri Operations Company, two of the leading regulated providers of electricity in the Midwest. Kansas City Power & Light Company and KCP&L Greater Missouri Operations Company use KCP&L as a brand name. More information about the companies is available on the Internet at: www.greatplainsenergy.com or www.kcpl.com.
Statements made in this release that are not based on historical facts are forward-looking, may involve risks and uncertainties, and are intended to be as of the date when made. Forward-looking statements include, but are not limited to, statements relating to the anticipated merger transaction of Great Plains Energy and Westar Energy, Inc. (Westar), including those that relate to the expected financial and operational benefits of the merger to the companies and their shareholders (including cost savings, operational efficiencies and the impact of the anticipated merger on earnings per share), the expected timing of closing, the outcome of regulatory proceedings, cost estimates of capital projects, dividend growth, share repurchases, balance sheet and credit ratings, rebates to customers, employee issues and other matters affecting future operations. In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Great Plains Energy and KCP&L are providing a number of important factors that could cause actual results to differ materially from the provided forward-looking information. These important factors include: future economic conditions in regional, national and international markets and their effects on sales, prices and costs; prices and availability of electricity in regional and national wholesale markets; market perception of the energy industry, Great Plains Energy, KCP&L and Westar; changes in business strategy, operations or development plans; the outcome of contract negotiations for goods and services; effects of current or proposed state and federal legislative and regulatory actions or developments, including, but not limited to, deregulation, re-regulation and restructuring of the electric utility industry; decisions of regulators regarding rates that the Companies can charge for electricity; adverse changes in applicable laws, regulations, rules, principles or practices governing tax, accounting and environmental matters including, but not limited to, air and water quality; financial market conditions and performance including, but not limited to, changes in interest rates and credit spreads and in availability and cost of capital and the effects on derivatives and hedges, nuclear decommissioning trust and pension plan assets and costs; impairments of long-lived assets or goodwill; credit ratings; inflation rates; effectiveness of risk management policies and procedures and the ability of counterparties to satisfy their contractual commitments; impact of terrorist acts, including, but not limited to, cyber terrorism; ability to carry out marketing and sales plans; weather conditions including, but not limited to, weather-related damage and their effects on sales, prices and costs; cost, availability, quality and deliverability of fuel; the inherent uncertainties in estimating the effects of weather, economic conditions and other factors on customer consumption and financial results; ability to achieve generation goals and the occurrence and duration of planned and unplanned generation outages; delays in the anticipated in-service dates and cost increases of generation, transmission, distribution or other projects; Great Plains Energy's and Westar's ability to successfully manage and integrate their respective transmission joint ventures; the inherent risks associated with the ownership and operation of a nuclear facility including, but not limited to, environmental, health, safety, regulatory and financial risks; workforce risks, including, but not limited to, increased costs of retirement, health care and other benefits; the ability of Great Plains Energy and Westar to obtain the regulatory approvals necessary to complete the anticipated merger or the imposition of adverse conditions or costs in connection with obtaining regulatory approvals; the risk that a condition to the closing of the anticipated merger may not be satisfied or that the anticipated merger may fail to close; the outcome of any legal proceedings, regulatory proceedings or enforcement matters that may be instituted relating to the anticipated merger; the costs incurred to consummate the anticipated merger; the possibility that the expected value creation from the anticipated merger will not be realized, or will not be realized within the expected time period; difficulties related to the integration of the two companies; the credit ratings of the combined company following the anticipated merger; disruption from the anticipated merger making it more difficult to maintain relationships with customers, employees, regulators or suppliers; the diversion of management time and attention on the anticipated merger; and other risks and uncertainties.
This list of factors is not all-inclusive because it is not possible to predict all factors. Additional risks and uncertainties are detailed from time to time in Great Plains Energy’s and KCP&L’s quarterly reports on Form 10-Q and annual report on Form 10-K filed with the Securities and Exchange Commission. Each forward-looking statement speaks only as of the date of the particular statement. Great Plains Energy and KCP&L undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.