What Evergy's Time-of-Use Rates Mean for Missouri Solar Customers

The energy landscape in Missouri is undergoing a significant shift as Evergy introduces its new time-of-use (TOU) rate plans. As we transition, Helio GreenTech is committed to illuminating the path for homeowners seeking clarity, control, and savings on their energy bills.

Missouri’s change is rooted in the dynamics of energy consumption. With the demand and cost of electricity soaring during peak summer hours (4-8 pm, June-September), TOU rates are designed to balance the load, encouraging energy use during off-peak times. Despite their intention to optimize energy consumption patterns, these new plans have ignited concerns among customers, fearing a surge in their electricity bills.

Understanding TOU Rates:

Evergy's four TOU plans, in effect beginning October 1st, 2023. While customers enjoy reduced rates during the off-peak hours, prices hike during peak hours. For households not choosing a specific plan, the default Standard Peak Saver plan applies, spotlighting concerns about increased costs, especially during the sweltering Missouri summers. If you’re confused about the new rates or concerned about the potential cost well – you’re not alone.

In fact Evergy requested a last minute request to allow customers to opt out of the controversial time-of-use pricing plans just days before the program became mandatory. If you didn’t select a new rate then you would be placed on the standard peak saver plan. Meaning that your summer rates would have peak times as high as 4 times your regular rate. According to Evergy’s website, during the summer months from 4-8 p.m. the price of electricity will spike from $0.09 to $0.38 per kilowatt hour (kWh). 

Missouri regulators approved Evergy’s request to change customers’ default plan days before its mandatory time-of-use pricing went into effect. The new default plan will be closer to Evergy’s traditional pricing with smaller differences between its highest and lowest rates. However, this is about a 20% increase above rate pricing last year; and in stark contrast to what Evergy was stating at the beginning of summer that an estimated 70% of customers would see a net decrease. From “Seventy percent of the folks transitioning to the standard peak default rate – they’re still going to see a savings on their bill,” Kolich form Evergy said in an interview with Fox4KC. “Customers have an opportunity to save more or to mitigate an increase that they may see, by choosing the rate that works best for them.” But this takes significant behavioral change, and paying attention to when you are using power. Sometimes using not using the air conditioning during peak times could be a health risk and could be seen as gouging customers when its literally 4 times the price of what it was last summer for the same energy.

This rate change was clearly filed with the state as a rate increase and the math didn’t add up that so many people would be saving while at the same time more money would be brought in by Evergy including schools, businesses, and homeowners. There’s been a lot of push back and outcry and Evergy has tried to respond but just 10 days after seeking permission to allow customers to opt out of controversial time-of-use pricing, western Missouri’s major electric utility withdrew its request with state regulators.

The company also drew fire from Missouri Senate Majority Leader Cindy O’Laughlin, who in July accused state regulators of “trying to ration power, gouge customers and force a transition away from fossil fuels and toward renewable energy.” The second half of O’Laughlin’s quote doesn’t make a lot of sense and unfornately seems to highlight a misunderstanding or agenda on the topic because Evergy is a state regulated monopoly and an investor-held utility that is gauranteed proffits by the state. It doesn’t appear to benefit Evergy to encourage customers to go solar. EXCEPT, this was an act that was voted on in 2008 by Missouri in response The Emergency Economic Stabilization Act of 2008 (EESA) for “15 percent of the state’s electricity to come from renewable sources by 2021. Of this amount, 13.3 percent, or 2 percent of the state’s total electricity consumption, must come from solar power by 2021.” SEIA executive summary 2008. as of 2020 Evergy MO was less than 1%, with an estimation of that more than doubling to 2% by the end of 2023. We are still a long way off from that commitment.

PSC Chair Scott Rupp says that these rates help customers lower their monthly energy expenses. Under this plan, when the cost to generate and deliver electricity is higher, the cost for customers to use electricity will be higher. When the costs are lower, customer rates will be lower.

Customer Concerns and Options:

Amidst the unfolding scenario, many Missouri residents, especially those reliant on air conditioning during peak hours, anticipate a spike in their energy bills. Evergy's proposal to allow customers an opt-out option or a return to traditional flat-rate pricing stems from a substantial volume of concerns voiced by the affected populace. If you are an existing solar customer with net metering, or are thinking about going solar, this is your only option.

Solar Energy with Helio GreenTech:

In the midst of these developments, solar energy emerges as a beacon of hope. For Evergy customers on the Peak Saver plan, a shift to solar isn’t just a leap towards green energy; it's a step into significant savings. With net metering, solar customers earn credits for the energy generated, cushioning the impact of increased rates.

Some light on what this pricing change means for solar customers.

There are 4 options on Evergy’s new pricing, but if you didn’t choose a different option, you’re likely on the Standard Peak Saver plan which quadruples the price of energy on summer afternoons.

But the “Peak Reward Saver” is the only plan available to solar customers and has a much smaller price difference during the day.

This new rate is roughly a 20% increase from last year. But with net metering, you receive credit for the energy your solar panels help create, helping to reduce your electric bill – putting that savings back in your pocket.

Helio GreenTech’s Role:

This new rate change has made solar more attractive than ever before. AND With solar financing, the transition to solar can be more cost-effective than your electric bill. 

As a top-rated solar company in Kansas City, Helio GreenTech is dedicated to guiding you through the complexities of this transition. With solar financing, you’re not just mitigating an endless expense but investing in an asset - your very own solar energy system. As you generate your energy, you stabilize your costs, making your energy expenditure an investment with substantial returns over time. Request a free online quote and our professional team can build out a proposal for your home.

Conclusion:

Evergy’s new TOU rates signify a pivotal moment for Missouri’s energy consumers. However, with Helio GreenTech by your side, this change can be navigated with informed choices leading to sustainable, cost-effective energy consumption. Dive into a world where your energy is not just green but tailored to offer significant savings and unmatched control over your energy future.

Optimize your energy, embrace solar, and transform this transition into an opportunity for unparalleled savings and sustainability with Helio GreenTech. Every sunbeam is a step towards a brighter, greener, and economically empowering energy future.

Evergy customers in Kansas do not need to choose a new plan… at this time. But changes are coming and Kansas is trying to put a stop to the “price gouging.” Stay tuned for more.