The Kansas Corporation Commission has approved a plan that would allow Westar Energy to receive about $3.5 million dollars in revenue for making emissions improvements at the La Cygne power plant in eastern Kansas.
Westar also agreed not to ask for a rate increase until March.
About two-thirds of the company's customers are expected to see an increase of about 16 cents on their bills, but they will not pay more until October of 2015.
The chairman of the Kansas Corporation Commission has announced he will resign. Mark Sievers has chaired the regulatory board since 2011.
The KCC regulates utilities including electricity, natural gas and telecommunications.
The organization has recently been involved in some controversies. A month ago, a Shawnee County judge fined the agency for violating the state's open meetings act by using a system in which some proposals were approved behind closed doors.
The Kansas Corporation Commission and an agency that represents utility customers have been butting heads over comments made by a KCC commissioner. The disagreement is over what the commissioner said about how the KCC decides rate increases for utility customers.
In a filing recently, KCC Chair Mark Sievers endorsed a process that uses a formula to decide future rate increases. The more common process is where advocates for utility customers and the utility make arguments before the KCC, and then the KCC decides on the amount of the increase.
The Kansas Corporation Commission is hosting a series of hearings regarding a massive power line that will cross Kansas and deliver electricity to Missouri, Illinois and Indiana.
The Grain Belt Express line will cross Russell and Osborne counties and send 600,000 volts of electricity from wind farms. The Kansas Corporation Commission already has found the project to be in the public interest. The hearings will focus on its location.