Public Hearing Notice

NOTICE OF PUBLIC HEARING
ON
PROPOSED
ELECTRIC REVENUE CHANGES

BOARD OF PUBLIC UTILITIES
OF THE UNIFIED GOVERNMENT OF
WYANDOTTE COUNTY/KANSAS CITY, KANSAS

On January 24, 2017, at 7:00 p.m., a Public Hearing will commence at the Board of Public Utilities in the Board Room of its 540 Minnesota Avenue, Kansas City, Kansas, location to present to the Board of Directors (the "Governing Body") of the Board of Public Utilities and to Utility customers, the BPU staff's proposed changes and revisions to the BPU's Electric Rates. Public comments concerning this proposal may be heard during the Public Hearing on January 24, 2017. The Public Hearing will continue commencing at 9:00 a.m. on January 25, 2017, at the same location, and public comments concerning this proposal may also be heard during the Public Hearing on January 25, 2017. Testimony on the technical aspects will follow the conclusion of the Public Hearing commenced at 9:00 a.m. on January 25, 2017, and will continue until concluded.

The Governing Body will not make a decision on the proposed electric revenue changes until after the conclusion of the public hearing described in this Notice.

Financial data, supporting documents and analysis in possession of the BPU which substantiate the reasonableness of the proposed revenue revisions are available in the office of the Director of Accounting at the Board of Public Utilities, 540 Minnesota Avenue, Kansas City, Kansas 66101, and (913) 573-9051.

BPU staff proposes the electric revenue revisions to (i) maintain financial integrity of electric operations in accordance with the BPU's policy and requirements of the Trust Indenture of the outstanding Bond issues; and (ii) make certain other rate schedule adjustments indicated to be needed by the associated revenue and cost of service studies and other analyses in support of the proposed changes.

The BPU staff proposes modifications to the electric base rates which will increase electric operating revenues from base rates over two years from revenues received under current base rates. The BPU staff proposes to increase electric operating base rate revenues, on an annualized basis, approximately 4.0% in 2017 and approximately 4.0% in 2018. The changes individual customers will experience may vary from the proposed annual increases, depending on the rates ultimately adopted to achieve the proposed total revenue increase.

The methods used in the electric analyses are in accordance with the industry accepted methods of allocating costs as kept in conformity with the Federal Energy Regulatory Commission's uniform system of accounts.

The BPU staff proposes additional changes to the Rate Application Manual relating to electric rates. The proposed changes include, but are not limited to, the following:

  • Shifting the definition of summer from the May through August billing period to the June through September billing period.
  • Modifying the calculation of winter period billed demand to be the maximum of current month actual demand or 70% of the previous summer peak demand.
  • Adding an electric heating option to all commercial rates with a modified method of calculating billed demand in which the winter period billed demand will b the minimum of the current month’s demand or the previous summer peak demand.
  • Modifying the Environmental Surcharge (“ESC”) rider to recover 1.3 times the annual debt service payment in the ESC.
  • Modifying the timing of the Reconciliation Adjustment in the ESC to January 1 to December 31 from October 1 to September 30.
  • Modifying the Energy Rate Component (“ERC”) rider to include chemical expenses related to electric production.
  • Eliminating seasonal energy charges for non-electric heating rate classes.
  • Addition of a rate for standby service for customers with self-generation.
  • Addition of an event lighting rate for certain stadium lighting that is limited to a certain number of events per year.
  • Addition of a general service high load factor rate.
  • Addition of a new lighting rate for LED lights.

INTERVENTION

Any affected Utility customer wishing to intervene, appear at the public hearing, present testimony of witnesses under oath, conduct cross examination of employees and representatives of the BPU, present oral arguments and file written briefs in support of said customer's position must file a petition for intervention pursuant to the Rules of Procedure for Rate Increase Hearing at least seventy (70) days prior to the scheduled hearing date, that is, by November 15, 2016, and file and serve exhibits, list of witnesses, and summaries of testimony and evidence at least thirty (30) days prior to the scheduled hearing date.

For information regarding this hearing, contact:

NAME:             Randy Otting
TITLE:              Director of Accounting
ADDRESS:       540 Minnesota Avenue, Kansas City, Kansas 66101
PHONE:          (913) 573-9051
EMAIL:            ratehearing@bpu.com

Please notify the Board of Public Utilities of any accommodation you may require, at (913) 573-9173.

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