Comments on: Westar gets more, but not at southern customers’ further expense

By: JWink

JWink — Wed, 04 Jan 2006 02:10:49 +0000

Ben Huie: Your comments above are very informative. I have wondered why power plants are allowed to use natural gas to produce electricity but this is the first time I have seen it questioned. Obviously, the competition to use natural gas in power plants drives up the cost of residential usage of natural gas. Power plants should be restricted to coal and/or nuclear energy. Or change all residential customers to all-electric heating somehow. But the current system pits electric consumers against themselves in an under-the-counter, out of view price war that is hugely detrimental to all consumers.

By: JWink

JWink — Wed, 04 Jan 2006 02:09:23 +0000

By: Ben Huie

Ben Huie — Tue, 03 Jan 2006 04:57:16 +0000

Yes, you are correct about the Board and also KGS. KGS IS regulated by the KCC; however its situation is a lot different. It is not paying down a big gambling debt like Westar. However, since it is really a distribution company rather than an energy producer its ‘cost of gas’ is unpredictable.

What we are getting here is the result of a REALLY BAD DECISION to allow a lot of electrical generation using natural gas. This, in turn, has driven up the cost of gas (wholesale); we are now reaping the resulta of that bad decision. This was NOT a KGS decision but rather a national one. Gas should NOT be used for electricity generation except in rare circumstances.

As for shareholders being mutual funds it is then their fiduciary responsibility to provide oversight. My comment about ’shareholders approval’ is in reference to their choosing to elect Board members who in turn allowed this to happen. There were numerous elections in which shareholders made the decision to endorse Protection One etc.

CALPERS has been a leader in pushing responsibility by corporations it owns. KPERS and others need to follow suit.

By: JWink

JWink — Tue, 03 Jan 2006 01:32:23 +0000

Ben Huie: I hope you are still paying attention to this blog. I presume when you say the “shareholders approved such and such,” you mean Westar’s Board of Directors who speak for the shareholders and supposedly gave guidance to Mr. Wittig and Mr. Lake. Of course, with so many shares outstanding in this utility company, the individual shareholder has very little say in the running/ruining of the utility company. In fact, I believe currently the largest stockholders are mutual fund companies such as the one headquartered in Kansas City.

Speaking of the Kansas Gas Company, as I understand it, Western Resources formerly owned a portion or all of it. But in the process of following the KCC’s orders to reduce the massive debt of $3.6 billion run up by Wittig/Lake partially for gigantic losses by subsidiary, Protection One, Kansas Gas Service was sold to ONEOK utility company in Oklahoma. As a result, among other things, all of us ratepayers now have to pay two separate bills each month, bills which formerly tended to balance each other out over 12 months because of the nature of electricity and natural gas usage. Now ratepayers will get screwed by two companies rather than one. I’m also not sure if the State of Kansas regulator group, KCC, moniters the ONEOK/Kansas Gas service to protect Kansas ratepayers.

As usual, the situation is getting worse rather than better for the people who have to pay the bills.

By: JWink

JWink — Tue, 03 Jan 2006 01:30:53 +0000

As usual, the situation is getting worse rather than better for the people who have to pay the bills.

By: Pancho Villa

Pancho Villa — Sat, 31 Dec 2005 07:13:44 +0000

Im going to start paying my gas and electric bill in pennies. It will inconveance them more than me

By: Damoon

Damoon — Sat, 31 Dec 2005 02:19:24 +0000

Oh my God! My gas bill was outrageous!!!If my electricity follows suit, I’m going to go live in a box down by the river!

By: JohnDoe#2

JohnDoe#2 — Fri, 30 Dec 2005 05:10:02 +0000

yeah westar sucks…but my kansas gas bill is getting way outta hand.

By: Ben Huie

Ben Huie — Fri, 30 Dec 2005 05:04:56 +0000

Good point rage. The shareholders approved those contracts; they are a part of the entire foray into non-regulated non-utility businesses (e.g. Protection One). That was their right as capitalists. However, just as any profits from those ventures rightfully would have belonged to the shareholders who approved the forays; so should the costs associated therewith accrue to the shareholders.

The whole thing is that the books should be segregated: allow an appropriate profit to be generated by the regulated utility; then allow the non-regulated busineses make or lose money as they may. However, in no way whatsoever should the ratepayers be expected to subsidize the forays into non-regulated businesses. The SHAREHOLDERS approved all this; NOT the RATEPAYERS.

By: Rage

Rage — Thu, 29 Dec 2005 20:26:20 +0000

Let’s not forget, Ben, that Westar is also paying for his legal defense, per his contract. I have no problem with paying taxes to defend indigents, but this is a far different situation.

By: XXX

XXX — Thu, 29 Dec 2005 03:39:41 +0000

The people in Salina and Topeka will have just one more reason to hate Wichita. Westar was always good at turning people against eachother.

By: Ben Huie

Ben Huie — Thu, 29 Dec 2005 02:42:18 +0000

Westar shareholders should not receive dividends until the debt accrued during the forays into non-regulated businesses is paid off. THE SHAREHOLDERS APPROVED THESE EXPENDITURES INCLUDING WITTIG’S LAVISH LIFESTYLE. Any profit margin calculation done by the KCC for the REGULATED UTILITY should b done based SOLELY on that regulated utility. Debt service on non-utility indebtedness should be excluded from any such calculation.

If the gambles had been successful the shareholders would properly reap the rewards. As the gambles failed they should properly shoulder the loss.

By: JWink

JWink — Thu, 29 Dec 2005 01:09:09 +0000

A 10% DECREASE in electrical rates should be immediately put into effect until (1) all Westar board of directors members who served during the time Wittig and Lake were running/ruining the company and failed to blow the whistle are eliminated from the Westar board; (2) Wittig and Lake are actually in prison and their legal bills not charged to Westar customers or dividends; 3) all non-regulated activities are eliminated from Westar’s portfolio; 4) company airplanes be eliminated; 5) the remainder of the $3.6 billion debt accumulated by Wittig/Lake is paid off; and 6) other prudent management practices deemed to be needed be put into effect such as independent audits, etc.