
Electricity bills are about to cost more for consumers in Kansas as Evergy raises transmission rates to offset rising costs.
The Kansas Corporation commission on Thursday approved the higher fees, although the KCC is little more than a rubber stamp at this point in the process.
The Kansas Code allows electric utilities regulated by KCC to charge connection fees to recover costs associated with transmitting electric power. Corporations do not need model approval from the KCC, as state statute law assumes this fee is prudent and the commission has no discretion to say otherwise.
The higher fees on customer bills will start on April 1st based on the refund subject. The commission can order a refund if auditors discover irregularities at a later time.
“The KCC audits every single one of these filings,” said KCC Commissioner Andrew French. “If the fee is miscalculated in any way, or if the costs do not match the cost shown in the statute, we have the opportunity to change the fee for these reasons.”
The New rate table Residential cost increased from about 1.88 cents to about 1.92 cents per kilowatt-hour. a A typical housing uses about 900 kWh of electricity per month, which brings their monthly bill up by about 36 cents. The additional annual cost will be approximately $4.32.
The dispatch delivery fee schedule includes about ten different prices for different customers. Schools will see their rate increase from about 2.11 cents to about 2.16 cents per kilowatt hour. The industrial and large capacity rate increases from about $6.78 to about $6.92 per kilowatt.
Evergy’s base rates are not increasing. The change in transmission connection fee is an annual adjustment intended to reverse the company’s cost of delivering electricity to Kansas customers.
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The fee increase is expected to increase revenue by $20.4 million, making the total transportation connection fee revenue $310 million. Evergy has seen this revenue grow by nearly $86 million over the past four years.
Evergy’s filing does not explain why its costs have increased, but spokeswoman Gina Penzig said the costs are related to building and maintaining the transmission system.
“The increase is the result of investment in transportation infrastructure to improve reliability, access to low-cost generation, and enable the growing renewable energy sector in Kansas,” Penzig said in an email. “Adjustments to the transportation cost involve many projects and transfers, so there is not a single driver to call.”
Customers seek a voice
condition Kingdom of Saudi Arabia Law 1237-66 It gives the company ample latitude to determine its costs and to increase its rates to cover those costs if necessary.
“It is important to note that these adjustments can go up or down based on the actual costs incurred,” Benzig said. “Since Evergy became a company in 2018, the majority of annual adjustments have decreased and resulted in a decrease in Kansas customer rates of more than $116 million. Since 2018, Evergy’s overall customer rates have decreased by more than 4%.”
Nested in the KCC table highlights a net increase of $86 million in transportation connection fee revenue since 2018.
“The massive transmission expenditures at Evergie Kansas Central have driven retail electrical prices up and higher,” Attorney Jim Zacura said in a statement. “We haven’t seen any tangible benefits from this high level of transportation spending.”
Zagora has applied for intervention on behalf of several large companies, including Wichita Spirit Aero Systems and Topeka Goodyear Tires, as well as the Kansas Consumer Industrial Group.
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“The economic well-being of every family and business in Kansas—as well as businesses hoping to expand or locate in Kansas—depends on the KCC meeting to direct the legislature not to penalize Kansans at electric retail prices that are significantly higher than in neighboring countries,” Zagora said.
The Citizens Benefit Rating Board is also involved.
KCC Questions Process for Raising Utility Fees
KCC delegates did not seem elated Through Evergy’s high fees. Committee Chairman Dwight Keane said the current process was “a far cry from a comprehensive review of the committee”.
“The commission does not have any control over these dispatch delivery fees in a material way that bypasses the vetting process,” he said.
Kane has been on the committee for four years – which means he’s seen an increase of $86 million since 2018.
“This is an incredible effect,” he said. “I would say that with reference to, if we want to make a comparison with the traditional price cases, it could be double or triple what the traditional price case would be, every two years. And the combined effect of this is really big and it has a huge impact effect.”
more:Evergy wants programs to incentivize customers to save energy. Advocates say it’s long overdue.
The French KCC commissioner called the process a “disgrace” and said he would like the KCC and lawmakers to have more information from the facility.
“Some of the transportation investments are savings,” French said. “It leads to saving fuel. It leads to avoiding the need for the new generation. It leads to savings (operation and maintenance).
“It would be good if there was a chance to learn more about the overall net effect of these investments, to be able to compare costs and benefits, because there are definitely costs, and it’s very clear in these filings. But I think the committee could benefit and the legislature could benefit from Learn more about costs and benefits.”
Jason Ted is a reporter at state headquarters in the Topeka Capital Journal. He can be reached via email at jtidd@gannett.com. Follow him on Twitter Tweet embed.
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