Evergy’s rate case has been resolved with a unanimous agreement from interveners/stakeholders, including CEP. The net increase of $74 million will result in an average monthly bill increase of $4.64 for residential customers in Evergy’s Kansas Central territory.
In July 2023 Evergy filed an application with the Kansas Corporation Commission (KCC), requesting a net rate increase of $204 million for Kansas Central customers and $14 million for Evergy Kansas Metro customers. In September 2023, CEP joined the other interveners and stakeholders in unanimously agreeing upon the terms of the Evergy rate case settlement.
From kcc.ks.gov:
“The Evergy Central service area includes Topeka, Lawrence, Olathe, Leavenworth, Atchison, Manhattan, Salina, Hutchinson, Emporia, Parsons, Wichita, Arkansas City, El Dorado, Newton, Fort Scott, Pittsburg and Independence, among other towns and rural areas. The Evergy Metro service area includes Lenexa, Overland Park and other communities near the Kansas City metro area.
The Commission held three public hearings in July to provide Evergy customers an opportunity to learn about the proposed rates, ask questions and make comments. Hearings were held in Topeka, Overland Park and Wichita.“
Public Comments about the proposed rate increases were accepted through 5 p.m. CST on Sept. 29, 2023.
Evergy’s original request was not approved, but Kansas Central customers will still see an energy bill increase as a result of the Evergy rate case settlement
If Evergy’s original request had been approved, Evergy Kansas Central customers would have seen an average monthly increase of $14.24, and Evergy Kansas Metro customers would have seen an average monthly increase of $3.37.
On September 29th, a $74 million net increase was unanimously agreed upon by all intervenors/stakeholders, including CEP, which comes out to about $4.64/month increase in their monthly bill for the average residential customer in Evergy’s Kansas Central territory. Evergy Metro (KC area) customers will actually see a $42.9 million rate decrease instead of the $3.37/month rate increase Evergy originally asked for, translating to an average $6.07/month decrease on their energy bills.
The agreed upon $74 million net increase will cover investment in a new wind farm and a residential battery storage pilot program, while keeping the monthly customer charge steady at $14.25 per month for all residential customers in both territories.
Additionally, the settlement covers property tax expenses, pensions for Evergy employees, cybersecurity, and storm reserves, while also accounting for an expired wholesale electricity contract with Mid-Kansas Electric Cooperative that provided a $41.5 million dollar credit for Evergy ratepayers.
Climate + Energy Project supported the Evergy rate case settlement, but urges future rate cases to include consideration of measures like shutting down coal plants, energy efficiency, and investment in energy justice.
Climate + Energy Project supported the unanimous settlement agreement because the residential customer charge remained largely unchanged.
During CEP’s testimony, we raised concerns that the proposed increases in the monthly customer charge would negatively impact Kansans’ ability to save money on their bill through energy efficiency measures, like those approved by the KCC in the ‘KEEIA’ docket.
The proposed rate increases would have also contributed to a higher energy burden for Kansans experiencing low wages, further exacerbating existing energy equity disparities.
The settlement agreement provides Evergy customers across Kansas more control over their energy bills as energy costs continue to rise. The settlement agreement also makes Kansans’ low and no-cost energy upgrades more impactful.
As noted in our testimony, CEP hopes that the Commission will consider a low-income rate option through a general energy efficiency docket in the near future, and that Evergy will move forward with the approved KEEIA programs, including Pay As You Save (PAYS) to help customers mitigate the resulting impacts to their energy bills.
As we continue the energy transition, CEP urges future rate cases to not focus solely on maximum revenues available to the state’s largest Investor-Owned Utility; but also include deliberation of relevant externalities for climate and health such as shutting down coal plants, energy efficiency measures, and an overall investment in energy justice.
