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Westar Energy, Inc.: Kansas Corporation Commission Approves Update to Environmental Cost Recovery Rider to Recover Investments

^{Published on 2009-05-29 13:03:33, Last Modified on 2009-05-29 13:04:31 - Market Wire}
 

TOPEKA, KS--(Marketwire - May 29, 2009) - Westar Energy, Inc. (NYSE: [ WR ]) announced today that the Kansas Corporation Commission (KCC) has approved an update to the Environmental Cost Recovery Rider (ECRR), following an audit and recommendation from KCC Staff. The KCC approved the $32.4 million ECRR to go into effect June 1, 2009. Of that, $25 million will be reflected in Westar's northern territory and $7.4 million will be reflected in its southern territory. For the average residential customer, this will mean a monthly increase of about $2.95 for customers in Westar's northern territory and about $ .88 for customers in the company's southern territory.

The ECRR is a tariff that permits Westar to recover costs associated with federally mandated environmental improvements to its generation facilities. The ECRR separates these charges from base rates and identifies them separately on customers' bills so that customers can clearly see impact of environmental laws and regulations. This also allows prices for the recovery of investments in emission control equipment to be adjusted gradually reducing the impact to customers and saving customers money.

Over the next couple years, Westar will be investing nearly $570 million in environmental controls at its power plants to meet environmental regulations.

Westar installed sulfur dioxide removal (scrubber) systems on all three generating units at its flagship power plant, Jeffrey Energy Center (JEC), located northwest of St Marys, Kan. All three scrubbers are operating full time. The scrubbers are removing over 95 percent of the targeted emission.

Westar Energy, Inc. (NYSE: [ WR ]) is the largest electric utility in Kansas, providing electric service to about 679,000 customers in the state. Westar Energy has about 6,800 megawatts of electric generation capacity and operates and coordinates more than 35,000 miles of electric distribution and transmission lines.

For more information about Westar Energy, visit us on the Internet at [ http://www.WestarEnergy.com ].

Forward-looking statements: Certain matters discussed in this news release are "forward-looking statements." The Private Securities Litigation Reform Act of 1995 has established that these statements qualify for safe harbors from liability. Forward-looking statements may include words like "believe," "anticipate," "target," "expect," "pro forma," "estimate," "intend," "guidance" or words of similar meaning. Forward-looking statements describe future plans, objectives, expectations or goals. Although Westar Energy believes that its expectations are based on reasonable assumptions, all forward-looking statements involve risk and uncertainty. Therefore, actual results could vary materially from what we expect. Please review our Form 10-K for the period ended Dec. 31, 2007 and our Form 10-Q for the period ended June 30, 2008 for important risk factors that could cause results to differ materially from those in any such forward-looking statements. Any forward-looking statement speaks only as of the date such statement was made, and the company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement was made except as required by applicable laws or regulations.