Kansas City Power & Light customers will be paying a little less for their electricity starting in March.
The Missouri Public Servive Commission has approved a request filed by KCP&L to change the fuel adjustment charged on the monthly bills of its electric customers.
The change take effect on March 1, 2016. In St. Joseph that will mean a decrease of around $1.76 a month for the typical residential customer, in Kansas City that will be a decrease of about $2.42 a month.
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.