New to auditing but been following the Evergy case in Kansas. They got approval for 8.4% plus they're restructuring some of the commercial rate schedules. Schedule SGF is being eliminated and customers moved to Schedule LGS. Anyone dealt with this kind of forced rate change before?
Evergy Kansas - 8.4% increase approved, rate schedule changes too
John - I'm right here in Wichita and have about 200 Evergy accounts under management. The SGF elimination affects customers with 300kW or higher demand. Most will save money on the new LGS rates because the demand charge structure is different. The threshold went from $16.50/kW to $14.80/kW but there's a new customer charge of $425/month.
Bonnie's right about the math usually working out. We see similar consolidations in other states. But watch for customers right at the 300kW threshold - they might benefit from demand management to stay under and avoid the higher customer charge.
That makes sense Jim. I have one client at 315kW average demand. If they can shave 20kW through scheduling changes, they could stay on the old rate structure until it's fully phased out in 2026?
Exactly John. Evergy has a 12-month grace period for existing SGF customers. If they can consistently stay under 300kW through December 2025, they can request to remain on SGF until the final phase-out. Worth the effort for smaller customers.
One more thing - make sure to review the new power factor provisions on LGS. They're enforcing 90% PF minimum where SGF was 85%. That could mean additional charges for clients with motor loads.