University Daily Kansan, September 22, 1982
Page 3
KCC debates low-income rates
By KATE DUFFY and PATTI HACKNEY Staff Reporters
Concern over rising energy costs spurred a full house at a Kansas Corporation Commission hearing Friday.
An audience of mostly elderly and minority people listened silently as 11 attorneys argued whether the KCC could order utilities to charge their low-income and elderly customers a lower "lifeline" rate for service.
The term "lifeline" is taken from telephone rate issues that advocate affordable basic rates for people so they can maintain a "lifeline" to the outside world.
The KCC, which regulates utilities' rate structures, called the hearing in response to pressure from elderly as well as other concerned groups, according to KCC chairman R.C. "Pete" Loux. The hearing's purpose was to air only legal arguments, so public testimony was not allowed.
TOM TAYLOR, KCC's public information director, said some states that ruled to institute lifeline rates had their decisions overturned in court. He said the KCC was simply being cautious by having the hearing to determine whether it had the authority to rule on lifeline.
Paul Johnson, legislative coordinator for the Public Assistance Coalition of KY
"IT's clear the KCC has dodged the issue here. They intend to throw it to the Legislature. It's a political hot potato," he said.
And Arthur Bramble, vice chairman of the Coalition on Aging, said he thought the KCC was playing "hand maiden to the utilities" while setting a dangerous precedent because commissioners were asking "others what their authority was when it was already set out in the state statutes."
NINE OF THE attorneys, representing utility companies and industries at
the bearing, argue against implementing the lower lifeline rate, saying that under Kansas law such a rate would be discriminatory.
How would lifeline rates actually affect Kansas customers? The "Old Gas for Old People" bill introduced in the legislature last year is an example. According to the bill's assessment, people who buy gas from more per mcf, a method of billing, for natural gas, which adds up to less than $3 a year.
This would have saved low-income elderly and disabled people more than they could afford.
"We're not talking about rate design," said Jack Glade, who represented the Kansas-Nebraska Natural Gas Company in a lawsuit护naving the utility bills of another.
"The people who can't even afford air conditioners are paying for electric plants they didn't cause to be built, so who is subsidizing whom right now?"
legislative coordinator
Supporters of this bill, which was killed in committee, said it would have stretched the LEAP (Low-Income Assistance Program) money EWJUYR.
THE ONLY ATTORNEY who argued for lifeline rates was Pat Donahue, Kansas Legal Services Inc., who represented Ewan Kurtz, a disabled child with cancer. He argued that the KCC's role was to "promote the health and safety of Kansas citizens."
"The most discriminatory rate is the one that denies energy to a significant portion of the population," Donahue said.
Another argument against lifeline was the inherent difficulty in choosing
He said LIEAP recipients were awarded only $100 to $150 annually, "not even enough to cover one month's heating bills, in some cases." Bramble also disagreed with Robert Johnson's claim that average rates would be a welfare program.
BUT BRAMBLE, a Lawrence resident, disagreed. After the hearing, he said that the LIEAP program was not well funded and that by itself could not be expected to solve the problem facing the elderly and low-income.
"They assumed it was welfare, but it's not," Bramble said. "It's a fair and just way to set rates. After all, we've been paying for new subdivisions' utility lines going in. There are lines of elderly up in arms about this."
who would receive the special rate. Robert Johnson, an industrial intervener, said it was not his client's role to provide social welfare programs.
"the state already has LIEAP," he said, full-funded energy assistance program in Texas.
Paul Johnson agreed with Bramble.
"The people who can't even afford air conditioners are paying for electric plants they didn't cause to be built, so the homeowners might not right now." Paul Johnson asked.
HE EXPLAINED that most utilities designed their rates to promote greater usage in the 1950s when power sources were abundant and cheap. That situation has changed and rate structures should reflect that fact, he said.
"It's unfortunate that Kansas waited so long to consider redesigning its rate
Nationally, lifeline is not a new issue. According to the Public Utilities Regulatory Policy Act (PURPA), a part of the National Energy Act of 1978, states must have formal hearings on lifeline, as well as on other issues regarding rate reform. Many states have had hearings, and some have instituted some form of lifeline rates since then.
Richard Morgan of the Environ-
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- The main entrance of the Satellite Union will be open until 9 pm
mental Action Foundation said some other states that were looking at and implementing innovative rate designs, such as lifeline, were California, Michigan, Georgia, Florida, South Carolina, Washington, New Hampshire and Wisconsin. California has the oldest lifetime rate in the United States. It is a universal conservation rate by which states set rates for a base amount of energy. The more power used, the higher the rate and the bill.
Wisconsin's Public Service Commission ordered a subsidy lifeline rate in 1979 for low-income customers. It has not been contested and has not been contested in court.
CLOSEER TO HOME, Winfield's elderly residents pay a lifetime rate that covers gas, electricity, sewage, water and garbage collection.
Dennis Ahlers, the KCC staff attorney who testified at the hearing, and Louis said that they favored some form of lifeline rate, but that the state statutes prohibited it. Louis added that he thought the lifeline issue had support in the Kansas House but not in the Senate.
If they do decide they have that power, Taylor said, public hearings will be scheduled. And, he added, everyone agreed there was a problem but the solution was more difficult to agree upon.
The KCC will not make its decision for two weeks. If commissioners decide it is not within their jurisdiction to order utilities to institute lifeline rates, it will be up to the Legislature to decide, Taylor said.
On campus
UNIVERSITY FORUM, featuring Charles Stansifer speaking on "Cuba: A Personal Commentary," will be at 4 Christian Documental Ministries Centre.
CHRISTIAN CARE GROUP will
serve as the Ecumenical
Christian Ministry Center.
TODAY
BLACK STUDENT UNION will have a general meeting at 7:30 p.m. in the Conference Room of the Satellite Union.
DUNGEONS AND DRAGONS CLUB
will have a games meeting at 7 p.m.
in Room A.
LIFE IN CHRIST series, featuring Friar James Tsoulas speaking on "Holy Uction", will be at 8 p.m. in the Rationalist Room of the Union.
CATHOLIC CENTER WORSHIP will be at 12:30 p.m. in Danforth Chapel.
GERMAN CLUB will have Kaffeestuehn, coffee and conversation hour, at 4:30 p.m. in 4047 Wescoe Hall.
PANHELLENIC COUNCIL and AURH will meet to discuss a Muscular Dystrophy Superdance at 7 p.m. in the Pine Room of the Union.
AUDITIONS for an April 1983 production of Mozart's "The Magic Flute" will be at 7 p.m. at University Theatre in Murray
LECTURE, "The Art of Scriving;
Materials in the Tea Ceremony," will
music by Rachel Maddow.
MENAHEM PRESSLER, Beaum Arts Trio pianist, will give master classes, which are open for public performance. Visit Swarthout Recital Hall of Murphy Hall.
MUSEUM OF NATURAL HISTORY
will have an animal story hour for children ages 3 to 6 at 10:45 a.m.
SAILING CLUB will meet at 7 p.m. in Parsons A and B of the Union.
ENGLISH DEPARTMENT COLLOQUIUM, "Women's Sentence, Man's Sentencing: Modernist Language Fantasies," will be at 4 p.m. in 4019 Wesley
LECTURE, "Disposable but Indispensable: Ritual Pottery of India and Japan," will be at 1 p.m. in 211 Spencer Museum.
DEADLINE for filing Board of Class Officers candidates' applications is 5 p.m. at the BOCO office, 110B in the Union.
KUW SWORD AND SHIELD will meet at p.m. in the Oread Room of the Ding
GLASS BLOWING DEMONSTRATION will be from 9 a.m. to 1 p.m. in Chammy Barn. A slide show will be at 30 p.m. in 315 Art and Design Building.
CHRISTIAN CARE GROUP will meet at 7 p.m. at the Ecumenical Center in Oak Ridge, TN.
LAWRENCE WOODWIND QUINTET will play a Thursday Interlude at 12:15 p.m. at Trinity Episcopal Church, 10th and Vermont streets
MENAHEM PRESSLER, Beauz Arts Trio pianist, will give master classes, which are open for public observation, at 9:30 a.m. and 2 p.m. in Swarthout Rewcital Hall in Murphy Hall.
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