Westar Energy Inc. (WR, Financial)(1.7%) (WR – $38.44 – NYSE) is an electric utility serving 700,000 customers in central and northeastern Kansas. WR is well positioned to grow its earnings, given a constructive regulatory environment that allows for annual rate adjustments outside of a general rate case to recognize environmental and transmission investment. WR is expanding its 6,200 miles of transmission infrastructure by constructing smaller transmission projects in Kansas, and it plans to spend $225 million per year on transmission projects, despite the recently lowered allowed ROE for transmission. On August 6, 2015, the company reached a settlement with all major parties related to its pending general rate case. The settlement proposal includes a total revenue increase of $185.1 million and the allowance of an abbreviated rate case to recover additional costs of environmental control equipment at the La Cygne and Wolf Creek generating stations not included in the rate case.
From Mario Gabelli (Trades, Portfolio)'s Gabelli Industrials Fund shareholder commentary for third quarter 2015.
