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Kansas IPL to Oppose Westar’s Latest Rate Increase Request

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We call your attention this article (Westar rate increase) from the Citizen’s Utility Ratepayer Board (CURB) about yet another requested rate increase by Westar Energy. It is a $31.7 million overall increase (1.8%), but the kicker is that the balance of who is paying is going to be radically reconfigured: residential rates will increase $61.9 million (8.77%), while small business customers (which would include most houses of worship) will see an increase of $21.5 million (6.18%). Meanwhile, larger commercial (big box stores) and industrial users will see a decrease of $45.6 million (33.65%). This is the same kind of rebalancing of societal costs onto the middle class and working people that we have seen in the state’s tax and budget process.

This proposal, when combined with Westar’s other recent rate increases, means that summertime bills for residential customers will have increased up to 60% since 2008. CURB tells us that these increases often pass without much public involvement in the hearings process. Kansas IPL think it’s time for that to change.

From our point of view, this is unconscionable in another way: most of the money is being spent on bringing the La Cygne coal-fired power plant into compliance with EPA safeguards. Westar (and KCP&L, which co-owns the La Cygne plant with Westar) decided to undertake this retrofit despite the fact that it could have replaced the power load with natural gas, which is cheaper and cleaner than coal. So on the one hand they’re continuing to cause the problems that come with coal-fired power, including air pollution, mercury, particulate matter, climate change, etc., and on the other hand, they’re making us pay (and pay) for the privilege.

In addition, Westar has virtually no meaningful efficiency programs to speak of, and, as the article points out, while they promise to develop a fund to help people who can’t afford the increased rates, the money for that fund will come from a source that until now has been used to lower retail utility prices across the board.

Many pastors find that one of the main reasons that people look for assistance is for help paying their energy bills, not to mention the burden that ever-increasing energy costs puts on houses of worship, with their limited budgets and inefficient facilities. A 60% increase in utility costs since 2008 is onerous, and lightening the load on big users to make it heavier on smaller users is even more so. Kansas IPL thinks this is an issue that the faith community can and should take a stand on.

Most of the actual increase (the $32 million) is guaranteed to Westar by legislation, so our focus will be on the the rebalance (imbalance) between classes of users; on the hardship that is caused by these endless rate increases; and on Westar’s lack of meaningful efficiency programs that could mitigate the impact of these increases on residential customers.

There are two public hearings coming up where the KCC will hear public comments on this issue:

Monday, July 1, 6:00 pm at the WSU Metroplex
and
Thursday, July 11, at 6:00 pm at the KCC headquarters in Topeka, with video conferencing available from Salina, Pittsburg and Hutchinson.

We would like to recruit a minimum of 5 clergy/faith leaders to testify at each session. If congregants/parishioners would like to attend also, so much the better. Please indicate your willingness to take part as soon as possible; we will help provide you with the resources you need to develop your testimony. Testimony can also be submitted in writing.

Sometimes pastors ask they can talk about environmental concerns as an economic justice issue. The connection is rarely more clear than in this case. Please join me in making a strong, faith-based statement about fairness and justice.


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