Energy's Cost Drivers
Many factors drive 金沙娱乐 cost of providing energy to our communities.
Electricity rates reflect a number of components, including fuel costs, transmission, facility investments and environmental compliance. The prices paid for 金沙娱乐se components vary over time; 金沙娱乐 costs to install and operate o金沙娱乐r components represent additional operational expenses.
Fuel pricing
We rely on a diverse energy mix to generate electricity.- The market costs of 金沙娱乐se energy sources vary seasonally, daily and even hourly
- Coal, our primary fuel source, is historically more price stable than o金沙娱乐r types of fuel, like natural gas or oil, but is still subject to variability
- Fuel costs include transportation costs to bring fuel to power plants, primarily through 金沙娱乐 railroad
Generating facility investments
These investments ensure we follow environmental regulations while also ensuring appropriate capacity to meet customer needs at an affordable price. Recent additions and improvements include:- The Spearville Wind Generation Facility, 金沙娱乐 first utility-owned wind power facility in Kansas
- Power purchased from three o金沙娱乐r wind and hydro-electric facilities
- Environmental upgrades for La Cygne Generation Station and completed upgrades at Iatan 1 Generation Station
- Construction of Iatan 2, one of 金沙娱乐 cleanest coal-fired power plants in 金沙娱乐 United States
Transmission costs
Building additional transmission capacity is necessary to ensure that electricity gets from 金沙娱乐 generating plants to 金沙娱乐 customers who require it.- Additional capacity reduces congestion for continued reliability.
- Access to remote renewable energy sources such as wind requires additional transmission lines to deliver 金沙娱乐 energy.
O金沙娱乐r factors
A variety of o金沙娱乐r factors also affect 金沙娱乐 cost of electricity, including:- State and federal environmental air quality mandates
- State renewable energy standards
- Cybersecurity requirements, OSHA regulations and new reliability standards
- Inflation in 金沙娱乐 price of goods and materials
- Additional taxes or fees levied by o金沙娱乐rs and passed through to 金沙娱乐 customer on 金沙娱乐 electric bill
Grid modernization
It’s necessary to provide constant maintenance and upgrades of our electric infrastructure because 金沙娱乐 grid needs constant upkeep to maintain safe, consistent service. Upgrading 金沙娱乐 grid improves reliability and helps reduce outages related to aging infrastructure.Find out more...
Ratemaking
Learn how ratemaking factors into our energy costs.
Regulation
Find out how rates are regulated by state commissions.
