http://www.saljournal.com/rdnews/story/westar_11_21_07Friday, November 23, 2007
Group questions Sebelius' influence in wind case
By Duane Schrag
Salina Journal
A watchdog group is asking that all three members of the Kansas Corporation Commission be recused from hearing Westar's wind energy request, citing a meeting nearly a year ago in which the governor's office reportedly promised the CEOs of several utilities that KCC would ensure their companies would be fully compensated for investments in wind.
The meeting was detailed in a confidential e-mail sent by Westar's CEO and was later obtained by the Citizens' Utility Ratepayer Board.
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It described a meeting Dec. 18 involving the CEOs from Empire District Electric, Kansas City Power and Light, Kansas Electric Power Cooperative, Sunflower Electric, Midwest Energy and Westar. The meeting, requested by Gov. Kathleen Sebelius, was also attended by Lt. Gov. Mark Parkinson and Joe Harkins, who at the time was a special assistant and energy advisor to the governor.
"The governor recognized that, for some companies, in the short run adding wind will increase cost," Haines wrote in his e-mail. "She further recognized that, historically, the rate making standard in the KCC has emphasized the lowest cost means to satisfy load. She indicated that the policy initiative will address this historical practice and will change it so that companies that commit to wind will be fully compensated."
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"(CURB's) concern arises from the fact that no statute in Kansas specifically assures cost recovery for wind acquisitions in KCC proceedings," the group wrote. "From a practical standpoint, the governor is simply unable to give assurances with regard to the outcome of any ratemaking issue or practice at the KCC without specifically directing and/or obtaining the agreement of at least two commissioners (a majority of the commission)."
Five months after the meeting -- in May -- Sebelius appointed Wright to replace KCC Chairman Brian Moline. Wright was a former law partner of Gary Sebelius, the governor's husband, and had represented Westar in prior litigation.
In July, she appointed Harkins to fill the seat Bob Krehbiel had vacated on the KCC.
...:banghead: