FR 2024-28532

The Federal Energy Regulatory Commission (FERC) has issued a notice regarding the initiation of an investigation into the proposed depreciation rates by Evergy Kansas Central, Inc., Evergy Kansas South, Inc., and Evergy Metro, Inc. This notice, published in the Federal Register, indicates that these rates could potentially be unfair or not compliant with federal regulations. The investigation seeks to determine whether these companies' depreciation rates are unjust, unreasonable, unduly discriminatory, or otherwise unlawful.

General Summary

The commission formally started this inquiry on November 29, 2024, under Docket No. EL25-19-000 and has set the refund effective date as the date of publication in the Federal Register. This procedural choice aligns the timing of potential refunds to coincide with public notification, ensuring transparency in the process. The notice also outlines the procedure for interested parties to intervene, requiring them to file a motion within 21 days.

Significant Issues and Concerns

Several issues arise from the document that may affect stakeholders and the process:

• Lack of Specific Details: The notice does not clarify what specific changes or considerations are involved in the depreciation rates, leaving a broad scope that may create uncertainty among stakeholders about how they might be affected.

• Complex Intervention Process: The process for filing an intervention appears layered and possibly convoluted, which may deter participation from individuals or organizations unfamiliar with regulatory procedures. Simplifying or clearly outlining these steps would help ensure broader public involvement.

• Multiple Contact Points: The document provides several email addresses and phone numbers for assistance, which could be streamlined to avoid confusion and improve accessibility for stakeholders seeking information or aid.

• Digital Accessibility: While the commission encourages electronic fillings, it's essential to recognize that not all stakeholders may have sufficient access to the internet or the requisite technological skills, potentially limiting participation.

• Lack of Impact Clarification: There is no specific mention of how the outcomes of this investigation will affect consumers, nor are criteria for judging whether a rate is unjust or unreasonable clearly defined. This gap leaves customers and other interested parties uncertain about potential consequences.

Broad Public Impact

The outcome of this investigation has the potential to influence power costs and services in significant ways. If the depreciation rates are deemed unjust and require adjustments, there could be financial impacts on both the companies involved and their customers. This could mean refunds or future rate adjustments that impact consumer electricity bills.

Impact on Specific Stakeholders

For consumers, particularly those served by these companies, changes to the depreciation rates could either result in financial relief or added costs depending upon how the findings align with existing charges.

Companies involved in the investigation may face reputational risks or financial impacts, depending on the outcomes. The findings could require them to adjust financial practices or provide refunds, impacting their financial planning and operations.

For regulatory bodies and legal professionals, the document presents an opportunity to analyze the fairness of utility depreciation rates and ensure compliance with the Federal Power Act. Their engagement in this process will be critical in maintaining fair practices.

The document essentially opens a critical dialogue on how energy service providers calculate depreciation rates and the broader implications these calculations have on fairness and legality. By encouraging public participation, FERC aims to ensure that various stakeholder voices, including those from marginalized communities, are heard in these regulatory processes.