TOPEKA — In a unanimous decision Thursday morning, the Kansas Corporation Commission (KCC) approved a settlement agreement that will cut electric rates for Kansas City Power & Light (KCP&L) customers by $10.7 million dollars annually as well as provide $36.9 million in bill credits.

The $10.7 million rate decrease will take effect on December 20, 2018. The average residential customer will save approximately $.40 per month or $4.80 per year. Included in that decrease are $7.5 million in savings realized from the company’s merger with Westar Energy earlier this year.

The bill credits, of approximately $100 per customer, will begin in March 2019. The bill credits are the result of tax savings from the Federal Tax Cuts and Jobs Act (TCJA).

Other components of today’s order include the establishment of a procedure for evaluating a possible rate class for schools, the implementation of a three-part rate plan for residential distributed generation (DG) customers, and two optional pilot programs: time of use and residential demand.

In issuing today’s decision, the Commission found the settlement agreement to be in the public interest and that it will result in non-discriminatory, just and reasonable rates that will enable KCP&L to continue to provide sufficient and efficient service.

Today’s order can be viewed on the Commission’s website.

KCP&L filed an application for rate review on May 1, 2018, requesting a 4.5 percent rate increase totaling $32.9 million, including property tax rebasing. As a result of the commission’s approval of the merger of KCP&L’s parent company, Great Plains Energy, with Westar Energy in May, the requested increase was reduced to $22.6 million. In October, the company reached a unanimous settlement agreement with KCC Staff, the Citizens Utility Ratepayer Board and other interveners in the case resulting in a 0.68 percent rate decrease.