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PSC approves change to KCP&L-GMO fuel adjustment charge

JEFFERSON CITY, Mo. – The Missouri Public Service Commission has approved a request filed by KCP&L-Greater Missouri Operations Company (GMO) to change the fuel adjustment charge (FAC) on the monthly bills of its electric customers.

The FAC change reflects fuel and purchased power costs during the six month period December 2014 through May 2015 (Case No. ER-2016-0005). It also reflects the company’s FAC true-up (Case No. ER-2016-0007).

The change in the FAC will take effect on September 1, 2015. It will mean a decrease of approximately $3.11 a month for the typical residential customer in the MPS service territory (Kansas City) and a decrease of approximately $2.69 a month for the typical residential customer in the L&P service territory (St. Joseph).

The fuel adjustment charge was authorized by the Commission for KCP&L-GMO in a regular rate case in 2007. 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 allows the company to recover most – up to 95 percent – of its costs, but not all, to encourage conservation and prudence in fuel use by the company. Any charges resulting from the fuel adjustment clause must appear in a separate category on customers’ bills.

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 for wholesale power purchased to serve customers.

KCP&L-GMO provides electric service to approximately 314,900 electric customers in Missouri.