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KCC Slashes Westar Transmission Delivery Fee

July 1, 2016 By Cheryl Kaften

On June 28, the Kansas Corporation Commission (KCC) authorized Westar Energy (Docket No. 16-WSEE-3 7 5-TAR) to lower its Transmission Delivery Charge (TDC), which will result in savings  of about $18 million over the next 12 months to its 700,000 residential, commercial, and industrial ratepayers.

The average residential customer can expect to see a reduction of $1.50 reflected in his or her TDC line item charge within the next billing cycle.

The savings stem from a KCC complaint filed with the Federal Energy Regulatory Commission (FERC) in March 2015, alleging that Westar had over-earned on its transmission costs. FERC sets the rate of return for electric transmission costs.

In March 2016, FERC approved a settlement agreement (Docket No. EL14-93-000) concerning the complaint between the KCC and Westar Energy, which reduced the company’s retail transmission revenue requirement. In its order, the commission set the base rate of return on equity (ROE) at 9.8 percent, with a cap of 11 percent.

“The settlement appears to be fair and reasonable and in the public interest, and is hereby approved,” the FERC order said. “Refunds and adjustments shall be made pursuant to the settlement.”

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