Working on a warehouse in Kansas City served by Evergy. There's a line item called "Transmission Cost Recovery" that adds $0.015/kWh to their bill. The tariff references FERC Order 1000 but doesn't explain what costs are actually being recovered.
Evergy Missouri - understanding "transmission cost recovery"
Lloyd - this charge recovers the cost of high-voltage transmission lines and substations. It's approved by FERC, not the state commission. The rate can change annually based on actual transmission investments.
Most utilities in SPP (Southwest Power Pool) have similar charges. It's how they recover costs for regional transmission upgrades. Check Evergy's annual transmission cost recovery filing for details on specific projects.
Found the filing! They're recovering costs for new 345kV lines between Kansas and Missouri. The charge has increased from $0.009/kWh in 2020 to the current $0.015/kWh.
Is there any way to challenge these charges or are they pretty much set in stone once FERC approves them?
Glenda - transmission charges approved by FERC are generally non-negotiable for individual customers. The only recourse would be to intervene in the annual rate case, but that's usually not cost-effective for individual audits.
Thanks everyone. This charge adds about $1,800/month to my client's bill but there's nothing we can do about it. At least now I understand what it's for.
Understanding transmission charges is becoming increasingly important as utilities invest in grid modernization. These costs are often substantial but rarely challengeable at the customer level. Focus your audit efforts on areas where savings are actually possible.