Kansas Panasonic plant may lead to Evergy rate increases
DE SOTO, Kan. — Evergy could ask for additional rate increases due to the massive Panasonic battery plant development in De Soto, Kansas.
Evergy said rates for serving Panasonic are not yet set and must be approved by the Kansas Corporation Commission.
At full production, the future Panasonic plant is expected to have the same power usage of a small city and require two new substations, upgrades to others and 31 miles of transmission lines.
The infrastructure and energy needed to power the plant could mean rate hikes for Evergy customers in Kansas.
The power company filed documents with the Kansas Corporation Commission saying it may ask for an abbreviated rate case next year to help pay for infrastructure to meet Panasonic’s demand for electricity.
Evergy expects Panasonic to be roughly double the size of its current largest customer.
Evergy said in a statement to FOX4:
“As with any new customer – be it residential, small business or large – Evergy upgrades to the system to extend service are embedded in rates for all customers.
“Much of the investment related to Panasonic supports the expected growth from the jobs and secondary businesses that will be attracted to the area. Equipment that only serves Panasonic is paid for by Panasonic.”
Evergy also said:
“Panasonic will likely be eligible for the same electric rates available to any customer bringing a large electric demand to our Kansas service territory. Adding customers of this size with a consistent use of electricity helps make the overall system more efficient and brings a long-term cost benefit to all customers.
“Many of the existing large industrial customers located currently in Kansas operate under economic development rates. At this point, the rates for serving Panasonic have not yet been set and must be approved by the Kansas Corporation Commission.”
State regulators are already considering a pending request by Evergy to raise rates. Kansas customers could see jumps of anywhere from 2% to just under 10%, with the greatest increases in more rural areas.
Jim Zakoura is president of the Kansas Industrial Consumers Group, which filed a motion to dismiss that request.
He calls the rate increase unjust and unreasonable.
“The Kansas Cooperation Commission staff did a rate increase examination, which showed the rates were sufficient and in fact that they were too high in order to refund,” Zakoura said. “Now Evergy from time-to-time files a case that does not include a rate increase.”
Zakoura expects the KCC to have a rate ruling on the pending case in December.
“Given the size of the case and its central request to increase shareholder returns, it just doesn’t make any sense for customers,” Zakoura said. “Customers shouldn’t have to pay expenses for Evergy lawyers and consultants to build a rate case over this single issue.”
Below is the full statement from Evergy:
“The Panasonic costs are not part of the current rate case before the Kansas Corporation Commission.”
“In our filing before the commission, we have included that we will potentially ask for an abbreviated rate case within the next year. In Kansas, the regulatory framework allows for certain costs that are incurred shortly after a rate case to be recovered using a condensed process. During an abbreviated case, certain matters like return on equity and how costs are allocated among customers are not reopened. The order from the past rate case is applied to those issues.”
“Construction related to Panasonic is one of three items Evergy identified for recovery in an abbreviated case. We also may request to recover investment of new generation capacity and updated costs related to decommissioning Wolf Creek upon its retirement. The costs of these combined items are not yet determined.”
“Pertaining to Panasonic, this is the largest economic development project in the history of Kansas. At full production, a project of this scope would have an energy demand roughly equivalent to a small city. Evergy will not only be providing power to the facility itself, but also the anticipated residential and business growth in surrounding communities.”
“As with any new customer – be it residential, small business or large – Evergy upgrades to the system to extend service are embedded in rates for all customers. Much of the investment related to Panasonic supports the expected growth from the jobs and secondary businesses that will be attracted to the area. Equipment that only serves Panasonic is paid for by Panasonic.”
“Panasonic will likely be eligible for the same electric rates available to any customer bringing a large electric demand to our Kansas service territory. Adding customers of this size with a consistent use of electricity helps make the overall system more efficient and brings a long-term cost benefit to all customers. Many of the existing large industrial customers located currently in Kansas operate under economic development rates. At this point, the rates for serving Panasonic have not yet been set and must be approved by the Kansas Corporation Commission.”
Source: WDAF FOX4 Kansas City
