Missouri approves construction of Evergy facilities, sticking customers with the bill

KANSAS CITY, Mo. (KCTV) - The construction of several new Evergy facilities in Missouri and Kansas has been approved, but now customers could be stuck with a $2.4 billion bill.

On Wednesday, July 31, the Missouri Public Service Commission announced that it had granted regulatory approval to Evergy Missouri West for the construction of several new electric generating plants.

According to Evergy, the order allows the utility to continue with the construction of three natural gas-fired plants - the Viola Generating Station, Sumner County, Kansas; the McNew Generating Station, Reno County, Kansas; and the Mullin Creek Generating Station, Nodaway County, Missouri.

Meanwhile, Evergy leaders indicated that the order also approves the Sky Solar Project in Wilson County, Kansas, and the Foxtrot Solar Energy Project in Jasper County, Missouri.

“Evergy is pleased the commission approved the agreement that had been reached and allows us to proceed with development of solar and natural gas plants that will serve our Missouri West customers,” a spokesperson for the utility told KCTV5. “When planning new generation, Evergy focuses on providing reliable energy sources that meet customers’ needs at the lowest cost. Solar plants have their highest output during peak energy times and natural gas plants can be controlled so energy is available when customers need it.”

However, advocates with the Sierra Club said the PSC’s move to approve would charge customers in advance for the facilities. In total, Missouri customers could be stuck with a $2.4 billion bill.

In March, Missouri passed Senate Bill 4, which goes into effect on Aug. 28. The legislation allows Evergy to build the facilities on the state’s dime and pay it back through increased utility rates.

“If Evergy’s application is approved as submitted, Missouri ratepayers will be on the hook for gas plants that are likely to be unprofitable, operate less than expected, and incur high maintenance costs or even premature failure due to excessive generator starts and cycling,” said Michael Goggin, Vice President at Grid Strategies LLC.

Meanwhile, the Kansas Corporation Commission approved a similar move earlier in July.