$1.8 billion Evergy requests for new energy facilities approved amid rate hike worries

TOPEKA (KSNT) – The Kansas Corporation Commission (KCC) has approved two settlement agreements allowing Evergy to recover costs associated with three new energy generation facilities in the state.

The KCC announced that two separate settlement agreements have been approved for Evergy Kansas Central (EKC) to recover the cost of two new gas plants and a new solar facility. These new facilities are intended to meet the increasing demand for electricity and improve reliability.

Evergy submitted the request for recovery of construction work to the KCC in April this year and previously announced plans to build the new facilities in the fall of 2024. The energy company estimates that its proposed new solar facility, Kansas Sky, and the new gas plants would increase rates by 8.6%, according to the settlement agreement.

Kansas Sky will be completely owned by EKC and is due to be built in Douglas County at an estimated cost of $228.1 million. The two new 710 MW combined cycle gas turbine (CCGT) plants will be located in Sumner and Reno Counties.

The construction costs for the Sumner County plant are estimated to be $788.75 million while the Reno County plant’s construction costs are estimated to be $800.52 million. EKC and Evergy Missouri West will both have 50% ownership in the gas plants.

The KCC said it found the settlement agreement for Kansas Sky to be supported by competent evidence and that it will result in reasonable rates. The new solar facility is expected to provide a boost in resource diversification and is in the interest of the general public.

“The Commission finds approving the CCGT Settlement is in the public interest.  The Commission believes the CCGT Settlement is an efficient and reliable plan to add generation capacity to Evergy’s fleet.  Furthermore, the Commission believes the CCGT Settlement contains sufficient safeguards and guardrails to protect customers in the event of cost overruns.

The CCGT settlement will not immediately impact rates. Other than the Construction Work in Progress (CWIP) Rider recently authorized by the Legislature, which Evergy can begin utilizing 365 days after construction begins on each plant, no other costs will be added to rates until Evergy files a subsequent rate case.”
KCC press release July 7 statement excerpt

The KCC said in an additional statement that it is concerned “by the frequency and magnitude of rate cases” and encourages Evergy to emphasize pacing investment to align with load growth and mitigate large rate increases. It also emphasizes that keeping affordability in mind should be a major priority for Evergy.

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