by Murrel Bland
First the good news: The Kansas City, Kan., Board of Utilities doesn’t see a reason to increase its rates for water during 2015 and 2016.
Now the bad news: the utility plans to increase its electric rates 5 percent in 2015 and another 5 percent in 2016.
Half of that increase would be needed because of federal requirements that utilities reduce emissions. The other half would be because of the anticipated cost-of-living.
The Environmental Protection Agency has been monitoring all utilities with the same message—cut the emissions from coal-fired plants.
To resolve this problems, the BPU will shift its Quindaro power plant from coal to natural gas. The BPU owns 17 percent of Dogwood natural gas wells in Cass County, Mo.
The Nearman power plant, which was built in 1981, will be retrofitted so it doesn’t emit as many particles.
The BPU is subject to the Kansas City Ozone Maintenance Plan that requires lower nitric and sulfur oxide emissions at its Nearman plant. There is also a system at Nearman that removes mercury and other particulates from the air.
Don Gray, the general manager of the BPU, spoke recently at a breakfast meeting. Most of those who attended were major BPU ratepayers. Gray said that BPU employees have not received any salary increase for about the past two years.
The BPU is required to publish its intent to increase rates and hold hearings. The Black and Veatch engineering firm of Overland Park is conducting a rate study.
Gray said that BPU has 566 employees—92 less than what it had 10 years ago. Forty years ago, BPU had more than 1,200 employees. BPU’s annual budget is about $300 million.
Gray said that the United States is responsible for only about 1 percent of the world’s pollution; the big polluters are China and India. However, the EPA said the United States must set a good example.
Murrel Bland is the former editor of The Wyandotte West and The Piper Press. He is the executive director of Business West.