The Kansas Solar Dilemma: A Journey from Uncertainty to victory.
With the unveiling of Evergy’s new pricing model, Kansas City residents are bracing for a potential surge in electricity bills come next summer. The utility company’s introduction of time-of-use (TOU) rates, where the cost per kWh spikes during peak summer hours, has prompted a significant shift towards solar energy solutions.
TOU pricing could lead to bills four times higher during the summer, putting a financial strain on households. However, many have found their answer in solar energy – a cost-effective, sustainable escape from skyrocketing electricity prices. Among the leading lights of this green revolution is Helio GreenTech, turning the tide for homeowners caught in the crosshairs of changing energy prices.
Evergy’s Price Dilemma in Kansas: A Brief History
If you are in Evergy customer and live in Kansas, you may not be hearing as much about the big price changes coming to Evergy customers in Missouri. But in Kansas we have our own pricing challenges, with an interesting history as to why Evergy is requesting it’s first rate increase in five years.
If you visit the website for Evergy you will see that prices haven’t changed very much for Kansas while in Missouri prices increased by 6.5% between 2017 and 2022 and a brand new increase and rate change. Evergy customers in Missouri are now being pushed into a TOU rate plan. You may be asking yourself if that signals big changes coming to Kansas customers?
In short, yes prices are changing. But as of fall 2023 the biggest increases are for central kansas customers by about 4.05%. while other areas are actually seeing a decrease in rates.
The press releases from Evergy this last year have preparing investors for a planned rate increase, one that was not approved as of October 9th, 2023. At least not the way Evergy had hoped posts how this is a huge win for Kansas customers, but it’s not the win that Evergy was looking for. As Kansas retirees pushed back on “Evergy executives hope to grow profits by 6% to 8% a year through a combination of cutting costs, increasing prices and selling more electricity.”
“As part of the rate review, Evergy has requested an increased allowance for depreciation of investments to ensure that recovery of costs associated with an asset is aligned with the useful lives of those assets and the customers who benefit.”
Here’s why. According to Evergy’s press release linked above “…despite record U.S. inflation of more than 21.5% since 2017, Evergy’s Kansas rates have remained well under inflation and steady over the same period. Including today’s rate settlement, Evergy’s Kansas rates have increased only 1% since 2017. That is in contrast with neighboring states, where during the same period regional rates increased 12.7%.”
This year, Evergy asked the Kansas Corporation Commission for a residential rate of just less than 10%. But the base rate increase for school customers starts at 25%. An Evergy spokesperson told KSN the net increase for schools in rates could be between 11-12%. But Kansas Corporation Commission utilities staff say “that isn’t justified.”
Evergy’s Price Dilemma in Kansas: A Brief History
Evergy, a merger between Westar Energy and Kansas City Power & Light (KCP&L), has faced legal obstacles in raising prices for solar customers in Kansas. The utility company's efforts have been hampered by regulatory decisions and court rulings that emphasize fairness and consumer protection.
The Westar-KCP&L Merger
The merger in 2018 united two major powerhouses, aiming to streamline operations, enhance service delivery, and improve customer satisfaction. However, this consolidation also brought to light the challenges associated with unifying rate structures and pricing policies. Evergy emerged as the unified entity, serving a diverse customer base across different regulatory environments.
The Demand Charge Controversy
In the wake of the merger, Evergy sought to impose a demand charge on solar panel owners in Kansas. This additional fee was justified by the utility as a means to cover the fixed costs of maintaining the power grid, which weren’t covered due to the reduced electricity bills of solar users. However, this move wasn’t received warmly.
The Court Steps In
Solar customers, backed by climate nonprofits, challenged the demand charge, taking the battle to the courts. In 2020, the Kansas Supreme Court handed down a landmark ruling, declaring the demand charge unconstitutional. The court argued that the fee discriminated against solar panel owners, effectively penalizing them for opting for a greener, sustainable energy source.
The Kansas Corporation Commission (KCC) echoed this sentiment, ordering Evergy to remove the demand charge and issue refunds to affected customers. This decision marked a significant victory for solar energy advocates and underscored the state's commitment to promoting green energy.
The Path Forward
The legal and regulatory constraints have limited Evergy's latitude in raising prices for Kansas solar customers. The utility company is bound by the court’s decision, which underscores non-discrimination and fairness in pricing. While Evergy maintains the perspective that solar customers still rely on the grid, especially during peak hours, and should contribute to its maintenance, the prevailing legal sentiment is geared towards consumer protection and fairness.
Evergy can potentially revisit its pricing structure following a comprehensive review and approval by regulatory authorities, ensuring any future changes align with legal precedents and are deemed fair for all customers. Collaboration with stakeholders, including solar customers and advocates, will be crucial in developing a balanced, fair, and legally sound pricing framework moving forward.
The legal struggles ensuing from Evergy's attempts to navigate the complex terrain of utility pricing post-merger underscore the delicate balance between utility providers' operational needs and consumers’ rights. As legal clarity emerges, the pathway for future pricing revisions will hinge on consensus, fairness, and adherence to the legal standards set by the courts and regulatory bodies.
Solar energy stands as a safeguard against these price hikes. Despite the increasing kWh rates, the solar advantage shines bright, offering substantial savings and autonomy from the fluctuating energy market. With every solar panel installed, residents not only cut down their electricity bills but also contribute to a sustainable, eco-friendly future.
Helio GreenTech: Your Partner in the Solar Revolution
In the face of Evergy’s evolving pricing structure and with the legal clarity in Kansas, turning to solar energy has never been more pertinent. Helio GreenTech stands at the forefront, offering customized, efficient, and affordable solar solutions. We are committed to helping Kansas City residents navigate through the shifting energy terrains, ensuring that every household can harness the sun’s power for reliable, cost-effective, and green energy.
As we move into a future where energy pricing is as dynamic as it is unpredictable, Helio GreenTech is your steadfast partner, ensuring that your home is powered affordably, sustainably, and reliably, no matter the changes on the horizon. Join us in the green revolution, where we turn challenges into opportunities, and every ray of sunshine into a step towards a brighter, greener, and more affordable tomorrow.