BY: MORGAN CHILSON
Kansas Reflector
TOPEKA — Staff at the state’s utility regulatory agency disagree with Evergy’s proposed rate increase that includes a 15% hike to residential electric rates.
Evergy customers can share their opinions at public hearings that start this week.
The Evergy division that serves about 735,000 customers in the eastern third of Kansas applied to the Kansas Corporation Commission in January asking for a $196.4 million annual rate increase. The KCC is the regulatory agency for the state’s utility industry.
The rate increase would raise bills about $13.05 per month for an average home. Schools would see an increase of 14.96%, while commercial and industrial businesses would increase nearly 12%, said James Zakoura, attorney for the Kansas Industrial Consumers Group.
He said this is a “much bigger” increase than usually seen in Evergy rate cases. The company had a five-year moratorium on rate case increases after Westar and Kansas City Power & Light merged in 2018 to become Evergy. Its first rate case after the merger was in 2023, where a 7.5% increase was approved.
“You’re seeing an outsized request, and they have said that one of the big reasons for that outsized request is they want an increased return on equity to their shareholders,” Zakoura said.
Investor returns
As a regulated utility, return on equity to shareholders is set by the KCC. Zakoura said it is currently 9.4%.
“In our request, we have asked for an ROE of 10.5%, which aligns with the current level of investment risk,” said Evergy spokeswoman Gina Penzig.
A report by S&P Global showed the average authorized ROE for electric utilities was 9.68% in rate cases decided in the first half of 2024, which increased from the 9.6% average in 2023.
“I recommend an allowed ROE of 9.70% for EKC’s revenue requirement,” said Adam Gatewood, KCC financial analyst, in testimony filed Friday. “If the Commission sets the ROE at a different point, my analysis supports staying within the range of 9.30% to 9.95%.”
Rate increases
Penzig said Evergy Kansas Central customer rates increased 7.2% since 2017.
“Over the past seven years, our residential rates for Evergy Kansas Central have increased about 1% per year, a rate that is half the average of neighboring states and a third of inflation,” she said.
Penzig said residential rates in neighboring states have increased by about 18% since 2017. Despite few rate increases, caused in part by the five-year moratorium, Kansas energy rates still are higher than four surrounding states, according to PowerOutage.com.
Rate comparisons, based on the average amount per kilowatt of electricity as of June 2025, show Kansas is $14.30, compared to Nebraska, $11.82; Oklahoma, $12.31; Missouri, $12.93; and Colorado, $15.20.
Penzig said rate cases are filed to recover money that’s already spent.
“In this case, we are asking to recover nearly $1 billion that has been invested in infrastructure to serve our Evergy Kansas Central customers since 2023,” she said.
Those investments include updating grid components, maintenance projects at power plants, adding electronic sensors to prevent and shorten outages, and more, she said.
KCC recommendation
On Monday, Andria Jackson, KCC financial analyst, filed testimony that said her calculations showed Evergy should receive a $122 million annual rate increase.
She said the primary drivers behind the rate increase are $91 million spent on infrastructure, $43 million in meeting actual costs of expenses that had been incurred, called a true-up, and $44 million in other adjustments.
Zakoura is concerned about how rate increases will affect Kansas businesses.
“Many of the commercial businesses operating in the state, will simply look at the cost structure in Kansas, and if the cost structure — including electric rates — is not competitive, they will either slow or reduce Kansas operations, or move production to other states that have better cost structures,” Zakoura said.
KCC will issue a written order on the rate increase by Sept. 29.
- 6 p.m. Wednesday, Wichita State University, Lowe Auditorium Hughes Metropolitan Complex, 5015 E. 29th St. North Wichita, Register to attend via Zoom by noon Tuesday.
- 6 p.m. June 16, Washburn Institute of Technology, 5724 S.W. Huntoon St., Topeka. Register to attend via Zoom by June 15.
- Written comments may be submitted to KCC until 5 p.m. July 14. Comments may be submitted online, by mail or by calling (800) 662-0027.