KCC approves unanimous settlement agreement in Evergy rate case

TOPEKA - This morning, the Kansas Corporation Commission (KCC) approved a unanimous settlement agreement allowing Evergy to increase its rates by $128 million to recover investments made to replace aging equipment and increase the resiliency and reliability of the power grid. Evergy requested an increase of $196.4 million in its application filed in January. The settlement agreement was reached after extensive negotiations between KCC staff, the Citizens Utility Ratepayer Board, Evergy, and many other intervenors representing industrial and commercial customers as well as school districts.

The new rates will take effect beginning with the October billing cycle. Residential customers with average monthly usage (900 kWh), will see an increase of approximately $8.47 per month. Based on an independent review of evidence in the record, the Commission found that the agreed upon rates will provide Evergy with sufficient revenues to meet its financial obligations yet will keep rates as low as possible while maintaining reliable service for its customers.

Commissioner Dwight D. Keen filed a partial dissenting opinion on today's order. He objects to the Commission's decision to grant a 9.7% Return on Equity (ROE) for transmission delivery charges (TDC), which covers costs associated with building and maintaining the transmission system. TDC charges are not included in base rates but are passed through to ratepayers as a separate surcharge on their monthly bill. Keen states the approved ROE is excessive and may present ongoing affordability issues for ratepayers.

Today's order is available here.

View the Unanimous Settlement Agreement.

A recording of today's Business Meeting featuring comments by Commissioners, is available on the KCC YouTube channel.