Westar Energy (NYSE: WR) and the Kansas Corporation Commission agreed to a settlement on July 1, 2015 that, if approved, would resolve the complaint filed with the Federal Energy Regulatory Commission by the KCC last year.
Through the agreement, Westar Energy’s transmission investment would have an authorized return on equity of 10.3 percent and provides for a refund of $10 million, reflecting the change in return retroactive to the KCC’s filing in August. Most residential customers would see a monthly savings of about 40 cents or less per month beginning in early 2016, pending FERC approval.
During the past decade, Westar has invested about $1.3 billion in the Kansas transmission grid.
“Transmission investment is critical to keep Kansas moving forward. A strong grid lets Kansas profit from its great wind resources, enables economic development and provides access to lower-cost electricity,” said Mark Ruelle, Westar Energy president and chief executive officer.
“I appreciate that through a constructive regulatory process we were able to reach an agreement that will maintain a return for our investors, allowing continued investment in our state’s infrastructure,” Ruelle said.