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The Kansas Corporation Commission (KCC) has authorized a rate increase for Evergy Kansas Central customers to finance the development of two natural gas power plants and one solar energy facility, despite concerns raised by consumer and environmental groups.
Rate Increase to Support New Energy Infrastructure
The KCC’s decision allows Evergy to raise customer electricity bills by approximately 8.6%, enabling the utility to fund three major energy projects:
- Two 710-megawatt combined-cycle natural gas plants:
- Viola Plant (Sumner County) – Estimated cost: $788.75 million
- McNew Plant (Reno County) – Estimated cost: $800.52 million
- Kansas Sky Solar Facility (Douglas County) – Estimated cost: $228.1 million
Evergy Kansas Central (EKC) will wholly own the solar project and co-own the gas plants with Evergy Missouri West, contingent on approval from the Missouri Public Service Commission, which has expressed concern over vague cost estimates.
Mixed Reactions and Ratepayer Concerns
Although the solar project drew general support, the natural gas developments sparked criticism from stakeholders, including the Citizens’ Utility Ratepayer Board, industrial users, and environmental organizations.
At a virtual KCC hearing, Commissioner Dwight Keen acknowledged the need to expand generation capabilities but emphasized the commission’s concern about the frequency and scale of Evergy’s rate hike requests. Evergy is also pursuing an additional 15% residential rate increase in a separate case.
“While new capacity investments are sometimes necessary, affordability and demonstrable need must drive Evergy’s decisions,” Keen stated.
“The commission urges Evergy to align future projects more closely with actual load growth and minimize excessive rate spikes.”
Evergy previously received a $41 million rate increase in 2023.
Opposition: Cheaper Energy Sources Being Replaced
Opponents argue Evergy is replacing low-cost coal generation with more expensive alternatives without clear demand justification.
Jim Zakoura, president of the Kansas Industrial Consumers Group, stated:
“Early retirement of coal plants that still operate efficiently makes no economic sense. Consumers are being asked to pay more without added value.”
However, KCC maintains that the age and unpredictability of coal units—such as those at Jeffrey Energy Center, where a fire in 2022 caused prolonged outages—make transition planning essential.
Climate and Volatility Concerns
Environmental groups, including the Sierra Club and Climate + Energy Project, voiced strong opposition to increased reliance on fossil fuels.
Dorothy Barnett, executive director of Climate + Energy Project, highlighted the risks:
“Gas prices are volatile. Winter Storm Uri proved that. Relying too heavily on natural gas puts us in a vulnerable position.”
She also emphasized the need to diversify energy sources as a protection against future economic shocks.
Evergy’s Defense and Justification
Evergy spokeswoman Gina Penzig expressed satisfaction with the KCC’s decision, saying the new plants are critical to meeting rising energy demand in Kansas and Missouri due to rapid economic development.
“This ruling confirms that these projects are the most efficient way to enhance system reliability and support long-term growth,” she stated.
The KCC’s approval of Evergy’s infrastructure plan marks a significant shift in Kansas’s energy strategy, blending renewable solar investment with controversial natural gas expansion.
While regulators stress the need for grid reliability, the debate over affordability, environmental impact, and consumer protection is far from over.