Win cuts exorbitant electricity costs for Kansans by nearly $10M

KANSAS (KSNT) - Senators Roger Marshall and Jerry Moran announced Kansans will pay less for electricity after an appeal to the Federal Energy Regulatory Commission (FERC).

Marshall and Moran contacted the Commission last September to reinstate a tariff filing by the Southwest Power Pool to cut excessive transmission costs that Kansans had to bear, according to a letter to the FERC. When the letter went unanswered, Senators Moran and Marshall wrote demanding answers in April 2024.

The excessive costs come from the SPP's "Highway/Byway" method. The method requires the cost of "Byway" facilities to be 67% in the zone where the transmission facility is located. The remaining 33% is allocated to the SPP region. The "Byway" facilities are primarily used to export wind energy to other zones instead of supporting the load in the Sunflower Zone, according to the letter.

"In recent years, Kansas has been in the top five states in the country in terms of both the level of wind energy supplying electricity generation in Kansas and the annual growth of wind capacity in Kansas," the letter to the FERC said. "However, the overwhelming majority of the wind generation in the Sunflower Zone is not affiliated with any customer in the Zone and is instead exported to the SPP region."

On Wednesday, June 5 Senator Marshall issued a press release announcing that the FERC is adjusting the transmission costs for Kansans.

“FERC’s ruling is a major win for Kansan consumers,” Senator Marshall said. "Our state is proud to be a leader in energy production, but that doesn’t mean Kansas consumers should be forced to foot most of the bill so consumers in other states can enjoy our services at a discount. Not only was this an unnecessary financial burden for Kansans, but FERC was also acting in violation of its own requirement that transmission costs must be based in relation to the benefits received by consumers."

The corrected FERC policy is expected to save Kansans $9.9 million per year, according to Marshall. Moran mirrored his sentiment saying, "This new adjustment removes unnecessary burdens from Kansans to make life more affordable."

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