Evergy should cut Kansas electric rates $18M, not raise them $218M, regulatory staff say - The Topeka Capital-Journal

Evergy should cut Kansas electric rates, not raise them, KCC staff say

Evergy should cut Kansas electric rates $18M, not raise them $218M, regulatory staff say
Jason Alatidd

Electric utility Evergy should cut its rates by $18 million across Kansas, not raise the rates $218 million, say staff for government regulators.

Kansas Corporation Commission staff on Tuesday weighed in on Evergy's requested rate increase, most of which isn't justified, the regulators said.

Evergy has an electricity monopoly on much of the eastern half of Kansas, but rates depend on whether you are a customer of Evergy Kansas Central or Evergy Kansas Metro. The central region, which includes Topeka, covers the old Westar Energy region prior to the 2018 merger with Kansas City Power and Light, which is now the metro region.

The original proposal filed by Evergy in April called for an approximately $218 million rate increase between its two Kansas service territories, but most of that burden would be on central region customers. Electric rates would have gone up roughly 10% across the central region, raising Evergy's revenue by about $204 million.

That is far too much, regulatory staff determined after a financial audit, which put justifiable figures at about a 2% increase and $35 million in additional revenue.

Evergy's original proposal called for a 2% increase in the metro region, bringing in $14 million more in revenue.

KCC staff said Evergy should instead decrease rates by 7%, totaling $53 million, in the metro region.

Tuesday was the deadline for KCC staff and other intervenors to file testimony in the rate case. The testimony was not immediately available from the KCC docket, but staff announced their position in a news release.

More: Topekans aren't happy about Evergy's plan to raise electric rates. Will regulators listen?

"While an important part in the process," the KCC release stated, "these results are far from final at this stage. ... The next steps in the process include cross answering testimony, rebuttal testimony from Evergy, a settlement conference to determine if the parties can agree on a resolution to submit for Commission approval, followed by either a settlement hearing or evidentiary hearing before the Commission."

The KCC commissioners, who are not bound to follow the recommendations of their staff, will issue a final order on Evergy rates in either December or January. Evergy executives have said they would prefer to settle the case.

The commission is accepting public comment through Sept. 29, which can be submitted online, by mailing the KCC at 1500 S.W. Arrowhead Road in Topeka or by calling the public affairs office at 785-271-3140.

More: Here's what we know about Evergy's $186M second-quarter profit as monopoly seeks rate hike

Jason Alatidd is a statehouse reporter for the Topeka Capital-Journal. He can be reached by email at jalatidd@gannett.com. Follow him on Twitter @Jason_Alatidd.