Retail electric rates are rising in Kansas. In this story, the Kansas Corporation Commission tries to shift blame to the legislature, but that's not the whole story. Transmission rates are rising because more transmission is being proposed and built. More transmission is being proposed and built to support renewable energy facilities and the export of Kansas wind to other states. The KCC is the one who approves the building of these new transmission facilities. If the KCC stopped acting like a rubber stamp approving every new transmission facility proposed in Kansas, whether it benefits Kansans or not, then the rates would not increase. End of story. It's the KCC's fault and only the KCC can control rising transmission rates.
We're constantly being told that renewables will lower our electricity rates because they have no fuel costs. But that's not exactly accurate, as the rising transmission fees in Kansas demonstrate. Connecting new renewable generators requires new and updated transmission, and much of the new transmission is being built to export renewable power to other states. Why should Kansans pay to export power that others will use? The Kansas state government loves new wind installations because they supposedly provide new "economic development" and jobs. But they don't really. Once built, there are few jobs. Even construction jobs aren't given to Kansans, but to a handful of national specialty companies that build high voltage electric transmission. Do renewable generators pay more taxes to localities? This is an open-ended question as generators are always looking to abate their tax liability or secure payment in lieu of taxes (PILOT) deals. So, what exactly is Kansas getting from all this? Well, I suppose elected officials get generous campaign contributions from renewable energy companies, but the average Kansan is getting zip.
In the news article, the KCC blames statute KSA 66-1237. The statute says
We're constantly being told that renewables will lower our electricity rates because they have no fuel costs. But that's not exactly accurate, as the rising transmission fees in Kansas demonstrate. Connecting new renewable generators requires new and updated transmission, and much of the new transmission is being built to export renewable power to other states. Why should Kansans pay to export power that others will use? The Kansas state government loves new wind installations because they supposedly provide new "economic development" and jobs. But they don't really. Once built, there are few jobs. Even construction jobs aren't given to Kansans, but to a handful of national specialty companies that build high voltage electric transmission. Do renewable generators pay more taxes to localities? This is an open-ended question as generators are always looking to abate their tax liability or secure payment in lieu of taxes (PILOT) deals. So, what exactly is Kansas getting from all this? Well, I suppose elected officials get generous campaign contributions from renewable energy companies, but the average Kansan is getting zip.
In the news article, the KCC blames statute KSA 66-1237. The statute says
Any electric utility subject to the regulation of the state corporation commission pursuant to K.S.A. 66-101, and amendments thereto, may seek to recover costs associated with transmission of electric power, in a manner consistent with the determination of transmission-related costs from an order of a regulatory authority having legal jurisdiction, through a separate transmission delivery charge included in customers' bills.
Who is the regulatory authority with legal jurisdiction to set interstate transmission rates? The Federal Energy Regulatory Commission. States have no jurisdiction over interstate transmission rates but must pass the rate set by FERC through to customers. The state is not permitted to "trap" costs that FERC says the transmission owners may recover by denying them. This is clear in Evergy's filing at the KCC:
Company shall collect from applicable customers a Transmission Delivery Charge (TDC) based on its annual transmission revenue requirement (ATRR) for costs to be recovered under the following schedules of the Open Access Transmission Tariff for Service Offered by the Southwest Power Pool (SPP) for service to Company’s retail KCC-Jurisdictional customers.
The TDC Unit Charges included on the following sheets are designed to recover the retail transmission revenue requirement. The Company shall file to adjust TDC Unit Charges to reflect and track changes in FERC-approved rates for charges included in the ATRR according to the terms of this rate schedule.
The transmission rates in the TDC are set by FERC and collected pursuant to Southwest Power Pool tariffs.
Put the blame where it belongs... the overbuilding of interstate transmission projects ordered by SPP for benefit of the region as a whole, not just Kansans.
So, the next time you hear that your electric bill is going to go down if you use more renewable energy, remember this! The cost of building new generators and transmission to connect them will make your bill increase. Will your bill increase more than the lowered fuel costs you may receive from using more renewable energy? Of course. This story is undeniable proof.
Renewable energy profiteers, environmental groups and the federal government have a problem. When regular folks realize that renewables are actually increasing their electric bills, then renewables won't be so popular any longer. They really were hoping to keep the lid on the problem until they got all this stuff built and it was too late to change course. But with transmission rates being what they are, the cost increases happen in real time. The best they can do now is try to shift blame everywhere except where it really belongs.
It belongs to those who approve the building of new transmission for the purpose of exporting renewable electricity hundreds or thousands of miles from remote locations.
Put the blame where it belongs... the overbuilding of interstate transmission projects ordered by SPP for benefit of the region as a whole, not just Kansans.
So, the next time you hear that your electric bill is going to go down if you use more renewable energy, remember this! The cost of building new generators and transmission to connect them will make your bill increase. Will your bill increase more than the lowered fuel costs you may receive from using more renewable energy? Of course. This story is undeniable proof.
Renewable energy profiteers, environmental groups and the federal government have a problem. When regular folks realize that renewables are actually increasing their electric bills, then renewables won't be so popular any longer. They really were hoping to keep the lid on the problem until they got all this stuff built and it was too late to change course. But with transmission rates being what they are, the cost increases happen in real time. The best they can do now is try to shift blame everywhere except where it really belongs.
It belongs to those who approve the building of new transmission for the purpose of exporting renewable electricity hundreds or thousands of miles from remote locations.
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