Missouri Court Upholds Transmission Cost Denial

The Missouri Court of Appeals affirmed a ruling by the Missouri Public Service Commission that had disallowed from retail electric rates federally approved costs associated with the transmission of electricity from one of the subject utility’s out-of-state generating plants, even while at the same time allowing recovery of the costs of constructing and operating the plant. The court rejected arguments by the utility, KCP&L Greater Missouri Operations Company (KCP&L-GMO), that the filed rate doctrine obligated the commission to include federally approved charges in retail rates. The court also turned back a claim by the company that the commission’s decision was “logically inconsistent” with its finding that the construction and purchase of power from the plant was prudent and represented the lowest-cost option for ratepayers. State ex rel. KCP&L Greater Missouri Operations Co. et al. v. Missouri Public Service Commission, Nos. WD 75038 et al., -- S.W.3d --, 2013 WL 1964835, May 14, 2013 (Mo.App.W.D.). For more analysis, subscribe to URN. http://www.fortnightly.com/utility-regulatory-news-0