The Missouri Public Service Commission, in Jefferson City, has approved a tariff that reduces fuel adjustment charges for electric utility services in KCP&L’s Greater Missouri Operations (KCP&L-GMO) territory.
The new tariff takes effect March 1 and means a reduction of approximately 82 cents a month for customers in the Kansas City service territory. An average residential customer in this comparison uses 867 kWh of electricity per 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 purchase 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 313,000 electric customers in Missouri.