Kan. Regulators Westar Electric Rate Increase

Westar, the state's largest electric company with about 674,000 customers, had been granted two rate increases totaling $162 million earlier this year.

The KCC allowed Westar to raise its rates in January by $130 million, to recoup higher operating costs and cover repairs following a December 2007 ice storm. In March, the commission approved an additional $32 million to offset costs in upgrading transmission lines.

The Citizens' Utility Ratepayers Board, which represents small businesses and residential customers, predicts rates will keep rising.

The KCC plans to have hearings this summer on raising Westar's rates again, partly to cover its investments in wind farms. And Westar announced plans earlier this month to spend up to $380 million upgrading pollution controls at its coal-burning plant outside Lawrence.

Still, David Springe, CURB's chief attorney, said "there wasn't a lot to argue about" when Westar sought higher rates this year to cover what it had spent on environmental upgrades.

"Frankly, Westar spent money," he said. "We will get clean air, but it's going to be expensive."

In regular trading Friday, shares of Westar closed up 23 cents at $17.85 on the New York Stock Exchange.