Evergy, the state’s largest and primary electricity provider, wants to increase its rates charged to customers despite posting record profits.
As part of the merger of Kansas City Power and Light and Westar Energy, Evergy was created with the understanding the company wouldn’t ask for a rate increase for at least five years. Well, that time has passed and Evergy is hoping to see not just a slight nudge upward but a 10% hike. Kansans would be stuck with the bill.
The Topeka Capital-Journal’s Jason Tidd and Andrew Bahl report the move — filed with the Kansas Corporation Commission in late April — will raise the monopoly’s revenues by $218 million. More of the burden would be placed on Evergy customers in Topeka, Hutchinson, Salina and much of the eastern third of Kansas compared to those in the Kansas City metro area.
Evergy says the increase is needed to fund infrastructure improvements. This doesn’t pass our sniff test. We hope the Kansas Corporation Commission denies the request. We just can’t support it.
The Capital-Journal reports an average residential customer in the Evergy Kansas Central service area would see their monthly bill increase by about $14.24. That’s about a 10% overall rate increase. In the Evergy Kansas Metro service area, the average residential customer would pay about $3.47 more per month. That’s about a 2% rate increase.
In February, the corporation reported $854 million in non-GAAP earnings in 2022, or $3.71 per share. That measure of the company’s profit exceeded the top end of the guidance range to shareholders.
A public utility shouldn’t be able to post record profits and then ask for a rate hike. That request is just dripping with indifference to Kansans who may be scrapping to make ends meet.
Perhaps those profits would be better used for infrastructure improvements?
From where we stand, Evergy is asking for too high a rate increase. While Kansas has seen positive economic signs, some residents are still trying to catch up, and this proposal only makes that more difficult.
Electricity is a utility, not a luxury. We need it to live our lives and do our work. We need it to charge our phones, laptops and devices. It’s not possible to live without it anymore.
Kansans shouldn’t have to struggle to keep the lights on.
— Topeka Capitol-Journal
