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What Will Evergy's Massive Spending Plan Mean for Customers?

AARP Kansas is encouraged by the Kansas Corporation Commission’s (KCC) decision in November 2021 to order Evergy to explain how its proposed sustainable transformation plan (STP) will impact electric rates. In its order, the KCC agreed with AARP’s recommendations that the plan should be closely scrutinized for cost-effectiveness and its impact on residential customers.

AARP Kansas State Director Glenda DuBoise said, “We are pleased that the Commission has heard our concerns and the concerns of other consumer groups and has signaled that in upcoming Evergy rate cases it will be scrutinizing all STP expenditures. We know Kansas ratepayers are concerned about the high cost of utilities from last winter’s storms and the projected increased costs in the future due to the recent doubling of natural gas and other fuel costs. The STP could make a bad situation worse since Kansas’s electric rates are already too high compared to our neighbors.”

The KCC also ordered Evergy to make changes to the STP recommended by the KCC staff—including quarterly and annual reporting requirements which will provide some ongoing public information on the utility’s proposal and its impact on electricity rates.

HOW IT STARTED

Evergy proposed the STP in August 2020 and the KCC opened a general investigation to discuss and evaluate the plan. More than 1,500 Kansans spoke out against excessive spending by Evergy which could raise electric rates. 

As AARP Kansas seeks to get more answers on behalf of consumers, here’s what we’ve learned from Evergy about its Sustainable Transformation Plan (STP).

WHAT EVERGY CLAIMS

The Sustainable Energy Plan (STP) investments are critical for investors and customers.

• Evergy plans to spend nearly $9 billion in both Missouri and Kansas.
  
• The STP will enhance earnings and rate base growth.
  
• The STP is critical to create a stronger grid, unlock significant operational efficiencies, and keep rates competitive.
  
• The STP will also help to transition the utility giant to a clean energy provider.
  
• Under the STP, Evergy anticipates that by the end of 2030, 33% of its generation will be wind, 24% will be coal, 23% will be natural gas and oil, 12% will be solar and 7% will be nuclear.

WHAT WE KNOW - Not nearly enough

• Evergy has failed to provide many details on the STP.
  
• There are no quantifiable targets or timeframes for some of the STP’s most significant goals, which are critical to holding Evergy accountable for performance.

Kansans will pay more

• Kansas already suffers from high residential electricity rates compared to neighboring states and this plan will ultimately raise rates for Kansans.
  
• Any increase will be on top of additional charges that Kansans will pay due to the winter storm emergency in February 2021. How much that will increase electric bills has not been determined.
  

There are complicated connections

• Evergy announced the plan after reaching a deal with a massive New York City Hedge Fund, Elliott Management Corporation, in 2018.
  
• This complicated connection between the utility and a shareholder with a large financial stake raises questions about Evergy’s motives and whose interests are being served.

WHAT AARP KANSAS IS DOING

Asking the tough questions and demanding more information.

• Ensuring access to a modern and reliable energy grid is essential. But if Kansans are footing the bill, they should know what they’re on the hook for.
  

The current process doesn’t include a formal proceeding which would ensure that the plan is transparent and justified and that is why AARP Kansas called for such a review.

• Evergy claims that the STP is important for transitioning to clean energy, but the plan includes no targets or timeframes, including reliability improvements, reductions in customer energy usage, and reduction in carbon dioxide emissions.
  

Keeping Kansans Informed

• Utility rates are an essential pocketbook issue for Kansas residents who are age 50 and older and their families, many of whom struggle to pay their utility bills along with other household expenses like food and medicine. AARP Kansas will focus on ensuring Evergy and other utility companies receive only what is reasonable and not a dime more.
  
• AARP Kansas is going to be a part of the discussion by officially seeking more details from Evergy. While the information may be lacking from Evergy, when details do come forward, AARP Kansas will make sure you know about it.

AARP Kansas is not alone in raising a red flag.  Check out these news stories....

“KIC and environmental groups have shared concerns Evergy’s STP is geared more at shareholder value than benefits for customers.” Kansas Relflector

“Most of Evergy’s electric customers could see an 11% increase in rates over the next five years, according to recently released documents by the Kansas Corporation Commission.” Wichita Eagle

Stay up to date on what’s happening with this case and other energy issues facing Kansans by frequently visiting www.aarp.org/ksevergyplan