KCC approves large load rate plan with consumer protections

TOPEKA - Today, the Kansas Corporation Commission approved a unanimous settlement agreement creating a Large Load Power Service (LLPS) rate plan that is designed to serve electric customers requiring greater than 75 megawatts of peak power consumption.

The settlement was a collaborative effort focused on meeting the growing needs of the state's largest electric users, including data centers and large manufacturers, while protecting other ratepayers from bearing an unfair portion of any incremental associated costs.

Participants in the negotiations included consumer interests (KCC Staff, Citizens Utility Ratepayer Board, Kansas Industrial Consumers), large company interests (Data Center Coalition, Google), the utility (Evergy), conservation interests (Sierra Club, National Resources Defense Council) and several school districts.

The new LLPS rates will apply to any new facility beginning service with a peak load forecast at 75 megawatts (75 MW) or more, or an existing customer expecting to expand by 75 MW. The contract term will be a minimum of 12 years, plus an optional load ramp period of up to 5 years, which most customers are expected to use, for a total contract length of 17 years.

Customers on the plan will pay a minimum monthly bill based on 80% of their contract demand, regardless of actual usage. They will also be required to provide collateral equal to two years of minimum monthly bills. If the contract is terminated early, an exit fee will apply that will require the customer to pay all minimum bills that would have been billed had the customer continued service.

Demand and energy rates in the LLPS plan are designed to cover Evergy's incremental cost to serve large load customers, so existing customers are not subsidizing those users. In addition, any system upgrades that are necessary solely to serve the new/expanded customers will be directly assigned to the new/expanded customer. Network upgrades to the transmission system needed to bring the large loads online will be directed by the Southwest Power Pool, as regulated by the Federal Energy Regulatory Commission, which is responsible for ensuring that wholesale transmission costs are allocated in a fashion that is at least roughly commensurate to the benefits being received by those transmission upgrades.

Efforts were also made to design a plan that was competitive with other Large Load Tariffs throughout the country, so that Kansas can properly compete for the economic development benefits that these loads represent.

View today's order

View the Unanimous Settlement Agreement here.

A recording of today's Business Meeting featuring comments by Commissioners, is available here.