Kansas utility regulators have issued an order requiring Evergy to explain and justify a financial plan amid concerns that the plan is designed largely to benefit a hedge fund investor.
The Wichita Eagle reports that members of the Kansas Corporation Commission sent a strong signal that they won’t tolerate efforts to increase shareholder profits at the expense of unreasonably high rates for Evergy’s one million Kansas customers.
At issue is a plan undertaken by Evergy after Elliott Management Corporation bought into Evergy last year with a stated goal of raising the company’s profitability and stock prices.
The plan calls for cost reductions in operations and a large expansion in system investment, both of which would benefit returns for shareholders.
Commissioner Susan Duffy said, “Our role here is to protect the ratepayer.”