The Kansas Corporation Commission has rejected a proposal from Westar Energy that would have shifted the cost of a lease and subsequent purchase of a power plant in the northeast part of the state.

Westar had purchased a 7 month lease and then bought 8% interest in the Jeffrey Energy Center for $3.7 million.   Prior to August, Westar and Kansas City Power & Light owned 92% of the Jeffrey Energy Center.   The remaining 8% was owned by Midwest Power Company.  MPC had been leasing the remaining 8% from Westar and then had been purchasing power from Westar and KCP&L that it would then sell to customers.

The original lease and purchase agreements ended in January.  Westar eventually renewed and then purchased the remaining percentage.

The company asked the KCC to approve the recovery of cost of the purchases through its Retail Energy Cost Adjustment, which would have passed the cost onto customers over the next 15 years.

The KCC rejected the proposal, saying Westar knew that it did not need the remaining 8% of the Jeffrey Energy Center to meet customer energy needs and the settlement agreement would increase customers’ rates.  The decision also stated that the utility failed to meet their burden of proof that the purchase was in the best interest of its customers.

The KCC said the proposal would have cost Westar customers approximately $93 million over 15 years.  Westar officials are disputing that figure.

Westar and KCP&L recently merged, creating a company that will be called Evergy.