Evergy Under Investigation by KCC

The Kansas Corporation Commission has launched an investigation into Evergy’s deal with asset management company Elliot International.

The agreement, reached in February, requires the utility to consider cutting costs or pursuing a merger transaction in order to increase shareholder profits.

KCC staff petitioned Commissioners to launch the investigation out of serious concern that the agreement could negatively affect Kansas electric customers.

The KCC filing said that the staff is very concerned that Elliott’s focus on increasing shareholder value will place Evergy’s customers at a high risk of paying higher rates or receiving lower quality service in order to support an increase in shareholder value.

Evergy will be required to file a report addressing questions posed by KCC staff no later than two weeks after its board makes a decision whether to pursue a cost reduction plan or a merger transaction.

The deadline for that vote is August 17.