TOPEKA – In an order issued this morning, the Kansas Corporation Commission noted concerns with Evergy’s Sustainability Transformation Plan (STP) and added reporting requirements to evaluate whether the STP is making progress toward regionally competitive rates and reliable electric service.

Today’s order does not attempt to decide the merits of the program or associated investments, those issues will be decided in Evergy’s future rate cases. However, the Commission did outline the following questions and concerns:

• How will the costs associated with the STP impact rates? It is important to achieve and maintain regionally competitive retail rates, and it is unclear at this time whether the STP improves or worsens the trajectory of rates.
• More transparency is needed on Evergy’s projections of future spending increases. The original STP envisioned $8.9 billion in capital expenditure spending from 2020 through 2024. However, in its September 21, 2021 Investor Presentation, Evergy extended its projections through 2025, increasing its proposed 5-year spending to $10.4 billion.
• The Commission remains concerned over Elliott Management’s role in encouraging and developing the STP, noting that as a regulated utility, Evergy should not prioritize shareholder interests to the detriment of ratepayer interests.