Kansas: Panel hears residents on Westar rates

The Kansas Corporation Commission heard concerns Wednesday night from around 100 people about Westar's request for $178 million in electricity rate increases. The utility says the increase is needed to cover investments in power plants and the cost of repairs to its infrastructure after the December 2007 ice storm.

"We need to find ways to meet our customers' needs," said Westar spokeswoman Karla Olsen.

The commission is expected to rule by Jan. 23 on Westar's request, which would increase rates for the average residential customer by 15 percent, or $10 a month.

But residents told the three-member panel that the increase would cause financial hardships.

Topeka social worker Kim Olson said she works with many cancer patients who are having trouble paying their utility bills because of their medical bills.

"It's $10 that they don't have," she said.

Jim Ludwig, a Westar vice president, said the proposed increase could almost be offset by lowering customers' thermostats 2 degrees in the winter and raising them 2 degrees in the summer. Westar is the state's largest utility with more than 647,000 residential and commercial customers.

David Springe, counsel for the Consumer Utility Ratepayers Board, said Westar wanted too much profit for its shareholders while saddling ratepayers with all its business risks, such as passthrough charges for its increasing fuel costs and environmental upgrades.

"I want them to have what they need, but not any more than they need," Springe said.