Current Issues
2024 Legislative Overview
The priority for the 2024 Kansas legislative session was creating standards the KCC and utilities should use when considering closing a coal plant, or other fossil-fuel plant. Senate Bill 455 outlined those standards. In short, the premise was it shouldn't cost more to close a coal plant than to keep it open.
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Evergy filed a bill, HB 2527, to essentially reverse anything the company didn't like from its 2023 rate increase request. It was a very anti-consumer bill, taking away KCC discretion on a number of items. Here is the initial testimony opposing the bill.
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After many weeks of negotiations with Evergy, the KCC, CURB and others, we were neutral on a new version of HB 2527.
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The bill contained:
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Increased (but capped) recovery of distribution investments, a concept called plant in service accounting (PISA) for Evergy
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Allowed quicker recovery of gas plant expenditures (construction work in progress -- CWIP) for Evergy
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Eliminated customer costs for economic development rate discounts -- positive provision
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Customer-friendly improvements to the regulatory timeline for major projects -- positive provision
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Coal plant protections from SB 455
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The bill had near unanimous support and was signed by Gov. Kelly.
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Evergy 2023 Rate Increase Request
On April 25, Evergy asked the KCC for rate increases for both its Evergy KS Central (former Westar) and Evergy KS Metro (former KCP&L) service areas.
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The Central rate increase request is for an additional $204M/year, or on average 9.77 percent increase.
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The Metro increase request is for an additional $14.2M/year, or on average 1.95% increase.
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Evergy is asking for enhanced returns for its shareholders and to accelerate depreciation for its coal plants, presumably, so it can close them sooner without financial risk.
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Various stakeholders opposed parts of Evergy's request and the staff of the KCC, along with KLER, supported significant reductions in Evergy's request. A settlement was proposed and ultimately approved by the KCC.
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The case is Docket 23-EKCE-775-RTS. The KCC News Release on the final order is here.
2023 Legislative Updates
Kansas has the highest electric rates in the region and there's no end in sight. Evergy is poised to file a massive rate increase request in April.
The Kansas Corporation Commission (KCC) is entrusted to regulate Evergy and the rates it charges. But the KCC isn't working to benefit ratepayers. This is the year to reform the KCC to make it more accountable to the electric customers of Kansas. SB 88 & HB 2154 provide needed reform to help customers.