What Impacts New Rates - Kansas

Update - Kansas Corporation Commission orders rate changes

On December 13, 2012, the Kansas Corporation Commission (KCC) released their order regarding our Kansas rate increase request. The order calls for a 6.7% increase, compared to our original request for 12.9%. New rates will be effective January 1, 2013.

Amount Requested		Amount Ordered
Percent	Daily Increase For Typical Residential Customer*	Percent	Daily Increase For Typical Residential Customer*
12.9%	41 cents	6.7%	21 cents

*A typical residential customer in Kansas uses a monthly average of 1490 kWh in the summer and 800 kWh in the winter.

Why did KCP&L request a rate change?

There are a number of reasons why KCP&L asked for an increase in rates in Kansas. Among the drivers for the increase are the significant investments we are making at our generating facilities. These investments include the addition of the Spearville 2 Wind Energy Facility and ongoing environmental upgrades at LaCygne Generating Station.

Additional wind in Spearville, Kansas

KCP&L's Spearville Wind Energy Facility sits on approximately 5,500 acres near Spearville, Kansas. KCP&L added 32 additional wind turbines, producing 48 megawatts (MW) of emission-free electricity. This project is known as Spearville 2, the costs of which are included in this rate increase request. Spearville 2 will help ensure KCP&L is in compliance with the Kansas Renewable Energy Standards Act. This act already requires KCP&L to have 10% of our capacity from renewable sources. This level will increase to 15% by 2016 and 20% by 2020.

KCP&L's first wind generation facility is Spearville 1. It was built in 2006 and consists of 67 wind turbines, which produce 100.5 MW of electricity—enough to serve approximately 33,000 homes. KCP&L currently generates approximately 8% of its generation from renewable sources, like wind.

Environmental upgrades for LaCygne Generating Station

KCP&L is in the process of making significant environmental upgrades at its LaCygne Generating Station, a coal-fired power plant KCP&L jointly owns with Westar Energy. The two units at LaCygne comprise the second largest power plant in KCP&L’s system and produce 1,400 MW of electricity. This plant plays an important role in ensuring the company can continue to provide affordable, reliable electricity to customers for years to come.

Included in this rate increase request are costs for construction currently underway on LaCygne. This construction includes installing baghouses, (which reduces particulate matter), a new chimney to serve both units, and a selective catalytic reduction system, (which works to reduces nitrogen oxide emissions). KCP&L is making these investments now as part of an agreement with the Kansas Department of Health and Environment to ensure LaCygne is able to continue operating beyond 2015, when major environmental regulations go into effect.