Aquila bills in KC may grow 9 percent
By MARK DAVIS
The Kansas City Star
Aquila's average Kansas City area electricity customer would see a $5.50 monthly increase under an agreement filed Tuesday with Missouri regulators, a company official said.
That's roughly a 9 percent increase, Aquila Inc. spokesman Al Butkus said. The agreement also would give Aquila approval to increase rates for its St. Joseph customers by about 5 percent, an average of $3.16 a month.
The agreement still needs approval by the Public Service Commission, whose staff was among those who signed off on the agreement. It also has the support of the Office of Public Counsel, the agency that represents consumers in utility rate cases, and groups representing customers in Sedalia and St. Joseph.
About half of the increase for Aquila's nearly 220,000 Kansas City area customers would come from a permanent increase in rates. The other half would come under a two-year charge reflecting higher energy costs — mainly natural gas used to generate electricity.
In total, Aquila would collect an additional $37.1 million a year. It originally sought nearly $80 million in rate increases.
“The agreement balances the interests of our Missouri customers with the priorities of our investors,” Butkus said.
He said Aquila won't comment further until the commission rules on the agreement.
The energy cost part of the agreement would last two years, after which Aquila would have to file a new request. In addition, if energy costs go down in those two years, or if regulators find that Aquila's energy charges aren't prudent, some of the charge could be refunded to customers.
The agreement asks that the increases take effect April 15. The agreement was filed late Tuesday afternoon, and it wasn't known when the commission would act. The commission has held hearings on the original rate request, and a commission spokesman said Tuesday that the parties to the agreement could be called before the commission to present further evidence or to answer questions.
The total increase includes $30.6 million for Kansas City area customers, of which $14.5 million comes from the increase in permanent rates and $16.1 million from the two-year energy charge. St. Joseph electricity customers would pay $5.65 million under the agreement, of which $3.25 million comes from the rate increase and $2.4 million from the energy charge. Aquila also has some steam customers in St. Joseph, who would pay about an additional $900,000.
Aquila is in the process of returning to its roots as a regulated utility company, selling off its unregulated businesses and utilities in other countries.
Chief executive Richard C. Green Jr. said earlier this month that Aquila won't be profitable in 2004, and he declined to predict whether it will be profitable in 2005.
The rate agreement was filed after the stock market closed. Aquila shares closed Tuesday at $3.97, down 4 cents. |
