The Kansas Corporation Commission on Thursday approved a unanimous settlement agreement allowing Evergy to raise its electric rates by $128 million.
The utility had requested a $196.4 million increase in its January filing, but the final amount was reduced following months of negotiations with KCC staff, the Citizens Utility Ratepayer Board, and intervenors representing school districts, businesses, and other customer groups.
The new rates will take effect beginning with the October billing cycle. For residential customers using an average of 900 kilowatt-hours per month, the increase will amount to about $8.47 more on their monthly bill.
In its order, the Commission said the approved rates will provide Evergy with sufficient revenue to meet its financial obligations and invest in grid resiliency while keeping customer costs “as low as reasonably possible” and maintaining reliable service.
Commissioner Dwight D. Keen filed a partial dissent, objecting to the Commission’s approval of a 9.7% return on equity for transmission delivery charges. Those charges, which cover the cost of building and maintaining transmission lines, are not included in base rates but are passed through to customers as a separate surcharge. Keen argued the approved rate of return is excessive and could create ongoing affordability concerns for Kansans.
The rate increase comes as utilities across the region work to replace aging infrastructure and strengthen reliability in response to extreme weather events and growing energy demand.