KCC approves Southern Pioneer’s plan to recover winter storm costs
Pioneer serves customers in southwest, south-central Kansas
TOPEKA – The Kansas Corporation Commission (KCC) has approved Southern Pioneer Electric Company’s plan for recovering $17 million in deferred February 2021 winter storm costs for customers in southwest and south-central Kansas.
The not-for-profit utility, like others regulated by the KCC, was ordered to do everything possible to continue providing utility service to its customers, defer the charges, and then develop a plan to allow customers to pay the unusually high costs over time to minimize the financial impact.
Under the plan, customers will have the option of paying their individual costs for the winter weather event over a period of 36 months, instead of a one-time payment. The monthly charge for residential customers with average usage will be $7.89 per month, plus a carrying charge of 2.14%, which represents Southern Pioneer’s actual cost of financing for these costs.
Customers who conserved energy during the winter storm will see lower costs for their efforts.
In addition, individual customers will have the option of paying off their remaining balance of the winter storm charges at any time, to prevent further accumulation of carrying costs.
Southern Pioneer serves approximately 17,000 customers.
The order is available at http://estar.kcc.ks.gov/estar/
A recording of the Business Meeting featuring comments by Commissioners on this order, is available on the KCC YouTube channel.