Evergy tells committee it weathered 'Fern,' highlights new large‑load tariff and TerraPower interest

Chuck Casely, an Evergy representative, told the Committee on Energy, Utilities and Telecommunications on Jan. 29 that the company kept nearly all generation online during winter storm "Fern" and that the system saw only brief, localized outages.

"We had 96% of our generation was running throughout the storm," Casely said, adding that Evergy never saw more than about 2,000 customers out at any one time and that many outages were resolved within minutes by switching feeds.

The presentation framed those operational results as part of a broader argument about rate stability. Casely said revenue from off‑system sales to the Southwest Power Pool returns to Kansas customers through fuel adjustments and other riders and can put downward pressure on future fuel‑related rate adjustments. He cited the company's experience after winter storm Yuri to show how off‑system sales affected rates in prior years.

Casely also outlined the large load power service tariff (LLPS) that applies to customers using more than 75 megawatts. "The LLPS charges a 25 to 27% premium," he said, and requires long‑term contracts (17 years), three years' notice to break and substantial collateral. Casely said the premium is intended to ensure that the costs of new transmission and generation needed to serve data centers and similar large users are paid contemporaneously and do not unduly raise rates for existing customers.

Committee members pressed Evergy on several points. Representative Schillingen Seepin asked about economic damage when outages occur; Casely answered that some industrial customers (he gave a steel mill example) can lose roughly $10 million an hour if production is interrupted and that Evergy proactively notifies large, sophisticated customers when grid alerts are likely.

Representative Hoheisel asked about TerraPower and small modular reactors (SMRs). Casely described Evergy as "very pro nuclear," noted Wolf Creek is the company's existing nuclear plant, and said TerraPower‑class units (roughly 300 MW, rampable) are promising but currently more expensive than natural gas. He estimated conventional sister units would cost vastly more (he said $15 billion–$30 billion for a full conventional unit) and suggested SMR commercialization at scale could be in the 2033–2038 timeframe unless financing advances.

On regional market issues, Casely defended Southwest Power Pool membership for improved reliability and cheaper access to power while warning the committee to monitor cost allocation among the 14‑state pool so Kansas customers are not disproportionately assigned transmission costs. He repeatedly urged legislative support for active KCC engagement on cost allocation.

Casely said Evergy is increasing capital investment (CapEx) for new generation and grid maintenance but argued that LLPS revenues and economic development would mitigate rate impacts compared with other states. He clarified that the $9 billion in recent capital investment he cited reflected economic development projects in Evergy's service territory (private company investments), not Evergy's own gas plants; he said Evergy is building two gas plants that are not yet in rates and expects to break ground shortly.

The exchange included operational details: Casely said Evergy fields a mix of employees and contractors for line work, that contractors sent to help other utilities are billed to the receiving utility, and that Evergy uses historical sensor data and remote operations to reduce outage impacts.

The hearing concluded with the chair asking Evergy staff present to identify themselves and a reminder of the committee's next meeting. The Committee did not take a vote on any regulatory action during the session.