Evergy could soon receive approval for more than $96 million in energy efficiency programs in Kansas meant to lower carbon emissions — and customers’ bills.
But the proposal is in a precarious position.
“I want to be excited, but I also know there’s a big a piece missing still, and it could easily all fall apart,” said Ashok Gupta, a senior energy economist for the Natural Resources Defense Council, who advised on the programs.
On Tuesday, Evergy filed with regulators at the Kansas Corporation Commission to delay proceedings on the issue while the company negotiates a financial deal to make the programs possible.
“Starting all over again in a new docket a year or more from now would be wasteful and could cause Kansas to continue to lose out on what has been proven to be the clear benefits of (demand-side management),” the filing says.
Evergy serves 1.6 million customers in Kansas and Missouri, covering the Kansas City metro area and much of eastern Kansas and western Missouri. For years, the utility’s Missouri customers have benefited from programs meant to increase energy efficiency, including allowing customers to finance upgrades, such as new windows, through a fee on their utility bills.
But Kansas has almost no energy efficiency programs. The state ranks 47th out of the 50 states and Washington, D.C., for energy efficiency policies and programs, according to the American Council for an Energy-Efficient Economy.
Evergy, Kansas Corporation Commission staff and environmental and anti-poverty activists reached an agreement on a set of programs for Kansas earlier this month. But the KCC staff says it can’t support the plan to allow Evergy to recoup the costs of the programs from ratepayers. In short, staff says Evergy would get to keep too much money.
Evergy said in a statement that it and most stakeholders agreed on the programs.
“We still have more work to do with parties to get a final agreement,” said spokeswoman Gina Penzig. “Evergy is eager to offer programs … that would provide Kansas residential and business customers with net bill savings, enhanced assistance for low-income and rural customers and new community benefits, like job creation, energy education and agency partnerships.”
Energy efficiency programs
Advocates often refer to energy efficiency programs as the “lowest-cost resource,” meaning helping customers conserve energy is cheaper in the long run than building new coal plants or wind turbines.
Evergy estimates its Missouri programs have saved energy equivalent to powering 89,000 homes and lowered emissions as though it took 150,000 cars off the road.
The Kansas proposal is estimated to save enough energy to power 39,000 homes. The lowered emissions equate to removing 45,000 cars from the road.
The proposal has won support from the Citizens’ Utility Ratepayer Board, which represents residential and small business utility customers. Dave Nickel, consumer counsel for CURB, said even customers who don’t directly participate in the programs will benefit.
