Oct 22, 2024

Gov. Kelly announces Evergy's $2B investment in two new natural gas plants

Posted Oct 22, 2024 1:35 PM
Gov. Kelly announces that Evergy will invest more than $2 billion in natural gas plants in Kansas. <b>Photo Courtesy Gov. Kelly's Office</b>
Gov. Kelly announces that Evergy will invest more than $2 billion in natural gas plants in Kansas. Photo Courtesy Gov. Kelly's Office

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Governor Laura Kelly joined Evergy executives and legislative leaders yesterday to announce that the company will invest more than $2 billion in building two new 705 megawatt (MW) combined-cycle natural gas plants in Kansas. Together, the new projects will provide more than 1,400 MW of dispatchable power.

“Kansas is experiencing record economic growth, and Evergy is prepared to deliver the reliable, affordable, and sustainable energy needed,” Governor Laura Kelly said. “Evergy’s multi-billion-dollar investment brings direct value to the Hutchinson and Sumner County areas in jobs and tax dollars. It also ensures Kansas can continue to invite business growth that benefits the entire state.”

The plant in Sumner County is expected to begin providing electricity in 2029, and the plant in Reno County is expected to be in service in 2030.

“High-efficiency, modern natural gas plants will meet the electricity needs for our region’s growing economy. These plants also will bring good paying jobs and tax dollars to Kansas,” said David Campbell, Evergy chairman, president and chief executive officer. “Dispatchable natural gas is an important resource within Evergy’s growing and diverse energy portfolio, complementing our planned investment in wind and solar resources and supporting our commitment to affordable, reliable, and sustainable electricity.”

During construction, more than 500 jobs are anticipated for each plant. After a 10-year exemption, each plant will provide more than $500 million in property tax revenues over its service life and will bring to the communities 20 to 40 skilled craft jobs that pay more than $90,000 annually.

Since 2019, the Kelly administration has created 1,284 committed economic development projects worth more than $19.9 billion in capital investment and nearly 69,000 jobs.

A rendering of the proposed Hutchinson 705 MW Evergy Plant.
A rendering of the proposed Hutchinson 705 MW Evergy Plant.

This spring, Governor Kelly signed House Bill 2527, a bipartisan bill that enhances Kansas policies to incentivize electric infrastructure investment, which is critical to ensuring Kansas has the infrastructure needed to meet the energy needs of Kansas citizens and businesses. This legislation makes Kansas more competitive for investment, increases opportunities for economic development, and ultimately saves Kansas ratepayers money on their electric bills.

“We are pleased that a legislative policy we championed is helping ensure a strong energy future for the state of Kansas,” Speaker of the House Dan Hawkins said. “I look forward to seeing the benefits this brings in terms of jobs, economic growth, and energy security for our state for years to come.”

“Kansans depend on reliable electricity each and every day to power their lives and their businesses,” Senate President Ty Masterson said. “These investments by a long-time Kansas energy company will make our state even more attractive to those wanting to live, work, and grow a business in our great state.”