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July 9, 2025

KCC's Strategic Mandate: Diversifying Evergy's Future and Shielding Kansas Ratepayers

On July 7, 2025, the Kansas Corporation Commission (KCC) issued a landmark order in Docket 25-EKCE-207-PRE, approving Evergy’s plans for new fossil gas AND solar generation. This was not the outcome we advocated for. However, despite greenlighting significant new infrastructure, the KCC’s decision was far from a blank check. It came with clear, forward-looking directives aimed at fundamentally reshaping Evergy’s resource planning and, crucially, safeguarding Kansas ratepayers from future financial burdens.

The Commission’s order reflects concern about the escalating cost of electricity for Kansans. The order states that the Commission is “troubled by the frequency and magnitude of rate cases” and that the Commission “strongly encourages Evergy to focus on pacing investment to better align with load growth and mitigate large rate increases.” This isn’t just a suggestion; it’s a firm expectation that affordability must be a “major priority.”

A Diversified Path Forward

A cornerstone of the KCC’s order is its insistence on a more diverse and less capital-intensive energy portfolio for Evergy. The Commission “will expect Evergy to demonstrate its serious consideration of less capital intensive options like demand response, utilization of surplus interconnection sites, and grid-enhancing technologies.” This directive signals a significant shift away from an over-reliance on large, centralized power plants.

  • Demand Response (DR): By emphasizing “less capital intensive options,” the KCC is pushing for robust DR programs. These initiatives incentivize customers to reduce electricity use during peak times, effectively lowering overall demand and reducing the need for expensive new generation or the operation of costly peaker plants.
  • Grid Enhancing Technologies (GETs): The order implicitly promotes GETs, which CEP advocated for. GETs optimize existing transmission and distribution infrastructure. Technologies like advanced conductors and dynamic line ratings can increase grid capacity and efficiency without requiring massive new construction, aligning with the KCC’s goal of mitigating large rate increases.
  • Comprehensive Alternatives: Beyond DR and GETs, the KCC mandates that future predetermination filings will be evaluated to ensure “all viable supply-side and demand-side alternatives are thoroughly considered.” This includes directing Evergy to evaluate repurposing existing generation sites for battery storage, to model battery storage in its Integrated Resource Plans (IRPs), and assess investments in distributed resources like community-based solar and energy efficiency. This holistic approach aims for a “diverse portfolio of generation with certain attributes, including flexibility, availability, and dispatchability.”

Protecting Ratepayers from Volatility and Overruns

The KCC’s order includes mechanisms to shield ratepayers from the inherent risks associated with fossil gas plants, particularly volatile fuel prices and potential cost overruns.

One safeguard is the “prudence review” for all costs incurred during construction. This shifts the financial risk from consumers to the utility, incentivizing Evergy to manage project costs tightly. Additionally, if project costs are projected to exceed 115% of the approved estimates, Evergy is required to make a compliance filing justifying continuation or requesting abandonment, with the KCC retaining the power to order abandonment or partial divestment.

To address fossil gas price volatility, the order mandates Evergy to “collaborate with Staff and the Citizen’s Utility Ratepayer Board (CURB) during the development of a Gas Purchasing Plan” and a “revised Hedging Plan” if necessary. Evergy must also secure “firm fossil gas transportation and supply arrangements” and file a detailed fuel supply plan, recognizing these as “absolutely paramount to the reliability of the combined cycle gas turbines (CCGTs).” These measures are designed to mitigate the impact of unpredictable fossil gas prices, which have historically led to significant ratepayer burdens, as seen during events like Winter Storm Uri.

The KCC’s July 7th order is a conditional approval. It acknowledges the immediate need for capacity but sets a clear precedent for Evergy’s future. The Commission is demanding a proactive, diversified, and cost-conscious approach to energy planning, ensuring that while Kansas’s energy needs are met, its ratepayers are protected. While the approval of the CCTGs was not what we wanted, we consider many of the thoughtful provisions in this order to be a win for Kansans, and thank the KCC for addressing many of the concerns raised by CEP and the public commenters during this case.

With your support CEP will continue to be the people’s voice at the KCC, engaging in dockets when necessary to hold Evergy to the mandates set forth in this docket. 

Works cited – Gemini AI supported this work

  1. THE STATE CORPORATION COMMISSION OF THE STATE OF …, accessed July 8, 2025, https://estar.kcc.ks.gov/estar/ViewFile.aspx/20250707160058.pdf?Id=f3d2fd2f-6005-4568-bfca-79feb1e5a4b1
  2. Kansas Regulators Approve Expensive Evergy Gas Plants – Sierra Club, accessed July 8, 2025, https://www.sierraclub.org/press-releases/2025/07/kansas-regulators-approve-expensive-evergy-gas-plants
  3. TAKE ACTION! Tell the KCC No to Evergy Fossil Gas Plants! – Climate + Energy Project, accessed July 8, 2025, https://climateandenergy.org/2025/02/13/take-action-tell-the-kcc-no-to-evergy-fossil-gas-plants/

Webinar Recording KS Sierra Club + CEP: Evergy Proposed Fossil Gas Plants Docket #: 25-EKCE-207-PRE – YouTube, accessed July 8, 2025, https://www.youtube.com/watch?v=H6ANDcJ4BEs#

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