Evergy, Inc. last week announced a unanimous agreement has been reached regarding the Kansas rate case. Click here to read the settlement.
The agreement was filed on September 29 with the Kansas Corporation Commission (KCC) and must be approved by the state’s Commissioners who are scheduled to issue an order in December.
Kansas businesses advocacy organizations —such as the Kansas Chamber and Wichita Regional Chamber — in July were granted intervention by the Kansas Corporation Commission (KCC) in the utility rate case.
Kansas Chamber President & CEO Alan Cobb responded to last week’s agreement: “While this settlement is significantly better for Kansas ratepayers than what Evergy originally proposed, the Kansas Chamber will continue to push for structural reform to increase transparency and accountability at the KCC and in the rate making process to address our state having the highest energy costs in the region.”
Evergy recently said if the agreement is approved, Evergy Kansas Central will implement a net increase of $74.0 million and Evergy Kansas Metro will have a net decrease of $32.9 million. Costs for residential customers in Evergy Kansas Central, which includes Topeka, Pittsburg, Wichita, Hutchinson and other communities in the eastern third of the state, will increase about 4.05%, which translates to an increase of approximately $4.64 per month for the average residential customer. For Evergy Kansas Metro, which includes Lenexa, Overland Park and other communities near the Kansas City metro area, rates for residential customers will decrease about 4.75%, and the average residential customer will pay about $6.07 less per month.
“This settlement is a very strong result for our customers,” said Evergy President and CEO David Campbell. “As a result of this settlement, average retail rates in Kansas will have increased just one percent, cumulatively, since 2017. And Evergy will recover investments made to improve the electric grid and build a cleaner, more reliable energy future for our Kansas customers, all while improving our record of regional rate competitiveness.”
Five years ago, regional utilities Westar Energy and KCP&L merged to form Evergy. Kansans for Lower Electric Rates President James Zakoura told KansasBizNews.com that Evergy Kansas Central’s retail electric rates have increased materially since the merger, which took place May 24, 2018.
“In that time period, the Transmission Delivery Charge increased by $40 million per year,” Zakoura said. “Property taxes increased about $33 million. There also was a $41 million surcharge to reflect Evergy’s lost wholesale sales revenue. Rates did not increase, because there was a rate reduction due to federal and state tax cuts – the benefits of which were passed through to retail ratepayers and merger required credits – which have now expired.”
The KCC conducted a hearing on the settlement agreement on Monday, Oct. 9 at its Topeka office. Commissioners had an opportunity to hear from parties’ witnesses and ask questions before deciding whether or not to approve the agreement.
