Analyst: Electric rate-making system tilted in favor of utlities


State News

January 20, 2020 - 10:09 AM

An independent review of Kansas’ rising electricity prices shows the current system for setting rates could use some improvements.

In a lengthy report requested by state legislators and submitted by London Economics, analysts concluded three main things: The current ratemaking process has been slightly balanced in favor of utilities, regulators are limited in their ability to protect consumers from paying for underused investments (such as aging coal plants), and additional bill surcharges and have been a key driver of rising rates.

The report looked at rates from all Kansas electric utilities — from co-ops to municipals to Evergy, the largest utility in the state with about 1.5 million customers.

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