Kansans reject Evergy’s proposed electric rates during hearing
All 53 Kansans who spoke during the Kansas Corporation Commission’s virtual hearing Thursday voiced opposition to Evergy’s proposed electric rates.
Those who spoke said the proposed rates were unfair to all consumers, discouraged solar and energy efficiency and questioned why Evergy charges solar customers in Missouri differently.
“In contrast to the proposed Kansas rate, our Evergy neighbors in Missouri are more forward-thinking and enjoy incentives to their renewable energy generation,” said Alice Bean, from Lawrence.
Bean, alongside others who spoke during the hearing, called for an independent rate study to determine what Evergy’s actual service cost is for solar customers and to present a new rate structure based on the study.
Several speakers asked that the study look at the financial benefits of solar and the benefits solar could bring to the economy, local health, climate change mitigation, and reducing reliance on fossil fuels.
“If Evergy truly believes that their solutions are good ones, then they should welcome this,” said John Shellito, who spoke at the meeting. “If they really believe their options are good ones, then the third party study should support what Evergy is proposing.”
The KCC must change the electric rates after the Kansas Supreme Court ruled in April of this year that Evergy’s current rates for solar customers are discriminatory.
Evergy presented a two-part proposal in October for a change to electric rates. Their first proposal is a new monthly fee for residential customers for $3 per kilowatt of installed distributed generation capacity, meaning the size of the solar array or other energy-producing systems, like a wind turbine, according to Gina Penzig, Evergy’s communication manager. The fee would be $0 for residents who don’t generate their own electricity.
If the KCC rejects the first proposal, Evergy proposed a minimum bill of $35 for all residential customers, those with and without solar.
“We’re glad the commission provided an opportunity for customers to share their opinion,” Penzig said. “Public hearings are an important part of the price-setting process and help us understand what matters to the customers we serve.”
Evergy has defended its proposed rates in the past, arguing that there is a “free rider” issue and that solar customers aren’t paying their fair share to maintain transmission lines and the grid.
Many of the members of the public disagreed with the idea of a “free rider” problem Thursday evening, saying that solar customers provide electricity at little cost to the utility, which can then be resold and can ease the energy grid’s burden when it is most strained, such as on a hot day.
“Characterizing solar generation customers as economic free riders is misleading, and frankly insulting,” said Kate Gutschenritter of Eudora. “That term claims we impose costs on the system without providing any benefits. Replacing fossil fuels with green energy is an indisputable public good with clear benefits. All the capital investment and maintenance for these solar panels fall on the owners.”
Several others questioned the validity of the “free rider” issue, asking if it cost that much more to serve solar customers and advocating for an independent study to be done to investigate the matter.
“What if Westar had not spent a decade and hundreds of thousands of dollars fighting net metering, portfolio standards, system size, segregating the ratepayers, rewriting legislation and dragging ratepayers through court proceedings and appeals, all the while shifting their legal costs to ratepayers, which far exceeds any shift by distributed generation users?” said Michelle Milburn of Mission. “Those are the real free riders in this system.”
Several members of the public who spoke urged the KCC and Evergy to look for alternate solutions outside of the state, where solar is a more established industry.
Brenda Oppert of Manhattan, said she sees the current proposed rates as a lose-lose situation for Kansas and was struck by the significant difference in her son’s situation who has solar in North Carolina.
“Most companies (there) see the value in energy diversification,” Oppert said. “Maybe the commission or Evergy needs to consult with some of these other companies that have successfully been able to work with their customers.”
The KCC will confirm the new rates on or before Feb. 25, 2021. Public comments will be accepted until 5 p.m. Dec. 21 and can be submitted online at the Commission’s website — https://kcc.ks.gov/your-opinion-matters — or emailed to public.affairs@kcc.ks.gov.
This story was originally published November 6, 2020 at 11:50 AM.
