Electric utility provider Empire District, a Missouri-based utility that has 12,000 to 15,000 customers in Oklahoma, wants a rate hike on the customers it also has in southeast Kansas.
If the company’s $15.8 million rate hike request is approved by the Kansas Corporation Commission, it would mean a 40% increase in an average residential bill.
Empire has about 218,000 customers in the three states and serves customers in Kansas in Cherokee County, located just across the state line with Oklahoma.
According to the Kansas Reflector, the Empire District Electric Co., which operates as Liberty, serves more than 8,400 Kansas residential customers, as well as nearly 1,350 commercial and industrial customers. Empire’s rate case included investments in three wind projects, one in southeastern and two in Missouri. It claimed the renewable energy projects would reduce annual fuel costs by $3.3 million.
The Kansas Corporation Commission announced this week it will hold a public hearing on May 12 to give Liberty Utility electric customers the opportunity to learn more about the company’s rate increase request, ask questions and make comments before the Commission.
Liberty Utilities filed an application with the Commission requesting to increase customer electric rates by $15.8 million to recover costs for investments made to update aging infrastructure, modernize its customer service technology, and strengthen the system against extreme weather and other challenges.
If approved in full, the increase will be phased in over a three-year period. Kansas customers with average usage (1000 kWh per month) would see their monthly bill increase $11.88 in the first year, $21.28 in the second year, and $21.28 in the third year. Currently, the monthly bill for customers with average usage is about $135.38 per month. The proposed total bill after three years would be approximately $189.83, a 40% increase in the total bill.
The public hearing will be held at the Columbus High School Auditorium located at 124 S. High School Avenue in Columbus beginning at 6 p.m. To make the hearing accessible for all Kansas Liberty customers, a virtual option through Zoom is available, giving remote participants a chance to comment and ask questions as well. Zoom participants must register on the KCC’s website by noon on May 11. The hearings will also be broadcast live on the KCC’s YouTube channel and recorded for later viewing.
“Like others, Empire has also experienced a large increase in its operating expenses due to COVID, inflation, supply-chain disruptions and other factors,” the company filings said, according to the Reflector.
“As a result, the request for an increase in its Kansas retail electric base rates is substantial. Empire is fully aware of the burden such a rate increase will place on its Kansas customers.”
Empire proposed phasing in its rate increase over three years, noting that even if KCC approves such a plan, the rate impact is “substantial.” The company said it would continue to discuss options to lessen the rate impact with KCC staff and others intervening in the case.