KCP&L wants to cover the cost of transmission power from Clarksdale, Mississippi to Missouri by raising rates to 309,000 customers in the former Aquila Inc. service area through 2032. In 2008 KCP&L acquired the plant when they purchased Aquila.
Should Missouri customers pay the costs to transmit the power from Mississippi? In 2011, the Missouri Public Service Commission said the customer did not have to pay the transmission costs that were about $5 million a year.
The utility has lost in two courts so far when they attempted to sue to recover those costs. KCP&L is now asking the U.S. Supreme Court to rule in the dispute.
KCP&L goes on to claim that because the transmission of power goes across state lines that the Federal Energy Regulatory commission is in charge of setting state-to-state transmission rates that Missouri energy regulators had no authority to intervene.
Utility company’s across the country will be keeping a very close eye on this case because they to have assumed that transmission costs across state lines could be recovered from customers.
Edison Electric Institute warns that a filing in the Supreme Court that “the Missouri loophole is uniquely positioned to spread like a virus in other states.”