Aug. 5--The city of Wichita will fight a proposed rate consolidation plan by Westar Energy that opponents say could eventually raise rates for south-central Kansas residents.

The Wichita City Council unanimously voted to direct the City Attorney's Office to try to intervene in the regulatory process under way with the Kansas Corporation Commission.

The KCC is scheduled to decide this fall whether to combine rates across the two divisions that make up Westar, the state's dominant utility, which has 675,000 customers.

Southern customers have traditionally paid higher rates than northern consumers because of high costs related to the Wolf Creek nuclear plant. Now, rates have flipped amid increased fuel and environmental costs for the coal plants that primarily power the northern division.

If the KCC decides to consolidate the rate, it should credit customers in the Wichita area for overpayments of the past 17 years, according to the council.

The city joins the Wichita school district, a group of industrial users and area state lawmakers in speaking against the consolidation.

Customers of Westar's northern division, formerly Kansas Power & Light, have traditionally paid less for electricity than customers in the southern division, formerly Kansas Gas & Electric.

When the companies merged in 1992, they kept separate rate structures so the northern customers wouldn't be burdened with paying for construction-cost overruns at the Wolf Creek nuclear power plant at Burlington, the main power plant for the southern division.

But rising fuel costs for the coal that primarily powers northern Kansas changed the equation. Nuclear fuel costs have remained largely stable and that has led to the south's rates now being slightly lower than the rates of customers in the northern division.

Groups such as Kansas Industrial Consumers -- a coalition of big-business electricity users including Cessna Aircraft, Spirit AeroSystems and Hawker Beechcraft -- argue it would be unfair to equalize the rates now.

They also say that consolidation would saddle southern customers with costs they shouldn't have to pay, especially if the federal government carries through with plans for a tax on carbon emissions from coal-fired power plants.

Westar officials say the rates are separated by only pennies a month. The company argues that the time to consolidate the rates is now, before they diverge again.

James Ludwig, executive vice president of Westar, addressed the council at Tuesday's meeting and fielded questions.

One came from council member Sue Schlapp, who held a sheet that showed the rates between northern and southern customers over the years.

"You could explain to me that's equity?" Schlapp asked.

Ludwig said a person could conclude that it was equitable if other issues are taken into account.

He said that prior to the 1992 merger, KG&E customers -- in the southern region -- were slated for large rate increases.

"That's easy to lose sight of," he said.

After the meeting, he said: "My view is going forward, that the rates on a consolidated basis will be preferable for both sets of customers."

Reach Joe Rodriguez at 316-268-6644 or jrodriguez@wichitaeagle.com.

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