Kansas Approves New Power Rate Plan to Support Large Energy Users While Protecting Other Customers
The Kansas Corporation Commission (KCC) has approved a new rate plan designed to accommodate the state’s largest electricity consumers, such as data centers and large manufacturers, while shielding other customers from additional costs.
The unanimous decision establishes a Large Load Power Service (LLPS) rate, which applies to facilities with peak power demand exceeding 75 megawatts (MW) or existing customers planning expansions of that size. The initiative aims to position Kansas competitively for major industrial and data center investments that require high, steady energy consumption.
The rate structure was developed through a collaborative settlement involving a wide range of stakeholders, including KCC staff, the Citizens Utility Ratepayer Board, Kansas Industrial Consumers, the Data Center Coalition, Google, Evergy, the Sierra Club, the Natural Resources Defense Council, and several school districts.
Under the new plan, participating customers will sign contracts lasting at least 12 years, with an optional five-year ramp-up period—a total term of up to 17 years. Customers must pay a minimum monthly bill based on 80% of their contracted demand, regardless of actual usage, and provide collateral equal to two years of those minimum bills. Early termination would trigger an exit fee covering the remainder of the contract’s minimum payments.
The KCC said the LLPS rate design ensures that existing Evergy customers will not subsidize the costs of serving large new loads. The new rates reflect the utility’s incremental costs, and any infrastructure upgrades required exclusively for these customers will be directly assigned to them. Broader transmission system upgrades will continue to be managed by the Southwest Power Pool, under oversight from the Federal Energy Regulatory Commission (FERC), which governs cost allocation for regional transmission improvements.
Officials noted that the plan was also benchmarked against similar tariffs in other states to ensure Kansas remains competitive in attracting large-scale economic development projects.
The KCC’s approval underscores growing attention to the energy demands of data centers and large industrial users nationwide, as utilities and regulators work to balance reliability, affordability, and economic growth.
This piece was created with the assistance of generative AI tools and was edited by our content team for clarity and accuracy.