KCC approves programs aimed at helping Evergy customers save energy, lower bills - KWCH

KCC approves programs aimed at helping Evergy customers save energy, lower bills

WICHITA, Kan. (KWCH) - The Kansas Corporation Commission in a 2-1 vote Friday morning approved an agreement that moves ahead with programs aimed at helping Evergy customers save energy and lower monthly bills. The KCC’s action isn’t related to Evergy’s pending rate case in which the utility requests an increase.

Specifically on Friday, the KCC approved a settlement agreement pertaining to Evergy’s application for “a Demand-Side Management (DSM) Portfolio featuring nine energy efficient programs.”

The KCC explained that discussions of the Energy Efficiency program application began when Evergy filed its application in December 2021.

“Agreement on the program offerings came relatively quickly. However, determining the best way to measure and fund the programs resulted in differing opinions,” the KCC explained.

The commission had two proposals to consider: a full slate of nine programs including PAYS (Pays As You Save), or a modified, lower-cost option featuring five programs.

“The original nine-program offering was approved [Friday] with conditions attached to help ensure accurate performance measurements and fiscal accountability while avoiding duplication of funding available under the Inflation Reduction Act,” the KCC said. The approved settlement agreement is expected to have a total bill impact of less than 1-2% to implement and maintain the energy efficiency programs, while producing lower overall costs for customers in the long run. These costs will not appear on customer bills until mid-2025 at the earliest.”

The nine programs the commission approved include:

- Whole Home Efficiency Program: Provides rebates, discounts, and on-bill financing for HVAC and building envelope measures in single and multifamily residences. It will also provide no cost energy assessments and discounted energy savings kits.
- Home Energy Education Program: Helps rural and low-income customers use energy more efficiently through marketing, outreach, and education.
- Home Demand Response Program: Helps customers reduce their energy use during peak demand periods. It also provides opportunities for customers to receive free thermostats and water heater controllers.
- Hard-to-Reach Homes Program: Provides enhanced incentives, no-cost home upgrades, and no-cost energy assessments and savings kits for low-income and rural customers.
- Whole Business Efficiency Program: Provides both variable and fixed incentives to help business customers install efficient equipment and building envelope improvements.
- Business Energy Education Program: Provides tools, resources, and guidance for businesses interested in saving money on energy. The program focuses on small businesses.
- Business Demand Response Program: Helps business customers decrease their energy usage during periods of peak demand.
- Hard-to-Reach Businesses Program: Offers enhanced incentives to small businesses and non-profits.
- Pilot Incubator Program: Creates a pathway to identify and evaluate new DSM program concepts to meet changing customer needs and integrate evolving technologies.

In a dissenting opinion, the KCC said Commissioner Dwight Keen explained his preference for a cost-effective alternative DSM Energy Efficiency proposal “that he believes provides substantial benefits to Evergy ratepayers at a significantly lesser cost, and more directly addresses his concerns regarding a possible duplication of incentives contained in the Federal Inflation Reduction Act (IRA).”

You can see the KCC’s order below

Concerning the requested rate increase from Evergy, the KCC hasn’t made a final decision, but the regulator this week did share an opinion from commission staff members who say what the utility requested is far beyond what’s justified.

“Kansas Corporation Commission Staff has weighed in on Evergy’s request for a rate increase in both of its’ Kansas service areas,” the regulator said. “In testimony filed with the Commission this afternoon, Staff’s detailed financial audit of the company’s income and expenses determined that an increase of 1.66 percent or $34,706,527 was all that could be justified at this time to provide service to Evergy Central customers. Staff’s position is in contrast to Evergy’s request for a net revenue increase of $204,152,629 or 9.77 percent.”

The KCC said a detailed financial audit from its staff further determined that an 7.32% decrease is appropriate for rates in the Kansas City metro, in contrast to a near-2% increase Evergy proposed.

The KCC is accepting public comments regarding Evergy’s rate increase request through 5 p.m., Sept. 29 on its website, by mail to the Commission’s Office at 1500 SW Arrowhead Rd, Topeka, KS 66604-4027 or by calling the KCC’s Office of Public Affairs and Consumer Protection at 785-271-3140 or 800-662-0027.

Copyright 2023 KWCH. All rights reserved. To report a correction or typo, please email news@kwch.com