Utilities all across the United States have been seeking rate increases. A few of those utilities include Puget Sound Energy (PSE; Bellevue, Washington, U.S.), a subsidiary of Puget Energy; Kansas City Power & Light (KCP&L; Kansas City, Missouri, U.S.), a subsidiary of Great Plains Energy; and PacifiCorp (Portland, Oregon, U.S.), a subsidiary of ScottishPower.

PSE has filed with the Washington Utilities and Transportation Commission to raise its average electric and natural gas rates by 9.2% and 5.3%, respectively. According to the company, the request was driven largely by the effect of high natural gas prices on PSE power costs and the utility's need for ongoing investments in power supplies, energy-delivery systems and initiatives for protecting customers from volatile energy markets.

PSE plans to invest about US$2 billion in the next three years on new energy supplies and infrastructure, with equally large investments expected thereafter.

The rate proposal also would support the acquisition of cost-effective, long-term electric supplies and natural-gas-system investments by PSE. When the utility filed its last rate-increase proposal in April 2004, state regulators authorized an overall 4.1% increase for electric rates and 3.5% for natural gas.

KCP&L is another utility that recently filed rate-increase proposals. KCP&L is seeking an 11.5% revenue increase in Missouri and a 10.5% increase in Kansas. This is the first time in 20 years the utility has filed for a rate increase for electric service.

“KCP&L has been able to keep rates low over the last 20 years in part by achieving total generation costs in the top 25% of utilities nationwide, aggressively managing fuel and transportation costs, and improving efficiencies in our distribution operations,” says William Downey, president and CEO of KCP&L.

The utility said the timing of these requests is in accordance with its $1.3 billion Comprehensive Energy Plan, which includes the construction of a coal-fired generating plant, a new wind-powered generating facility, environmental upgrades to existing plants, transmission/infrastructure improvements, and energy-efficiency and affordability programs. The rate change would take effect Jan. 1, 2007.

PacifiCorp has filed a rate-increase request with the Oregon Public Utility Commission for approximately $112 million to cover increased operating costs as well as investments in generation, transmission and distribution infrastructure. This would be an electricity rate increase of 13.2% and would take effect in December 2006. The company has requested five general rate increases in the last 10 years.

The current request comes in the midst of the utility being acquired by MidAmerican Energy Holdings Co., a deal that is expected to close by the end of March.