Evergy customers still headed for a rate increase — but a lower one. What’s next
Evergy customers in the Wichita area could see an average increase of about $4.64 a month in electricity costs.
That’s a $10 decrease from the amount Evergy originally sought.
When Evergy first submitted an increase proposal in April, it asked for a 9.77% net revenue increase in central Kansas, including Wichita. That would have meant an average increase of about $14.24 a month for customers.
The proposal was met with public criticism. Entities including the Wichita Regional Chamber of Commerce, Spirit AeroSystems the Wichita School District joined the rate case, and the Wichita City Council spoke out against the increase in August.
The Kansas Corporation Commission utilities staff said the almost 10% increase was not justified, arguing that a 1.66% net revenue increase in central Kansas was enough. Regulators were opposed a proposed 1.95% increase for the Kansas City metro area, saying that area should instead see a decrease.
Evergy agreed to a settlement last month that would instead increase costs to residential customers in the Wichita area by about $4.64 a month.
That increase would also apply to Topeka, Pittsburg and Hutchinson. The Kansas City metro area, on the other hand, would see a decrease of about $6.07 a month.
In a September news release, Evergy President David Campbell called the agreement a “strong result” for the company’s customers.
The commission held a hearing on Oct. 9 to review the new proposal, which can still be viewed on YouTube.
The agreement allows Evergy Kansas Central to ask for increased rates again for reasons including Panasonic-related distribution investment, Wolf Creek decommissioning trust adjustment and new resources to address 2024-2026 needs.
The commission still must decide “whether to approve, reject or modify the unanimous settlement agreement,” the KCC’s director told The Wichita Eagle via email. The commission’s decision is due Dec. 21.
How are energy rates decided in Kansas?
Deciding on rates in Kansas involves two steps, KCC’s website says.
First, companies have to find their annual revenue requirement. Then, using that requirement, the rates are designed in order to collect that needed revenue from customers.
In order for an energy company to change its rates in Kansas, it has to follow steps set by the Kansas Corporation Commission. These steps include:
- Energy company applies to change its rates
- Commission staff reviews the request
- KCC holds a public hearing. (Not a required step, but common)
- KCC holds an evidentiary hearing to review the facts
- KCC reviews the record
- KCC makes a decision
Energy companies also have to show that the proposed increase is warranted.
