Climate and energy

Reprinted in full from Salina Journal:

Westar’s power line use probed

By DUANE SCHRAG

Federal regulators are looking into whether Westar Energy manipulated use of transmission lines, a practice that would drive up the cost of electricity to consumers.

“There was a question that came up, whether we have been over-reserving the level of capacity and preventing others’ use of the lines,” said Bruce Burns, director of investor relations at Westar Energy.

The Federal Energy Regulatory Commission investigation was noted in Westar’s quarterly filing with the Securities and Exchange Commission, which was posted Friday.

“We are responding to a preliminary, nonpublic investigation by FERC of our use of transmission service … in 2006 and 2007,” Westar told investors, adding that it believes the company complied with all regulations.

Utilities schedule capacity on the lines, based on their estimates of how much power their customers will use.

At issue is whether Westar deliberately scheduled more capacity than it needed, Burns said.

He wasn’t certain when the regulatory commission began its investigation, but believes it has been ongoing for the better part of 2008.

Federal law requires that all utilities be allowed open access to transmission lines, regardless of who actually owns them. Line owners receive royalties for use of their lines.