Rate hike listed as biggest driver of Evergy earnings
KANSAS (KSNT) - The largest driver for Evergy's earnings per share price was new retail rates, according to a recent earnings call report.
The company will now be increasing its dividends to shareholders and is projecting higher stock prices in 2025.
Evergy had originally asked for a rate hike of $204 million for former Westar customers and an increase of $14 million for Evergy Kansas Metro customers in the Kansas City metro area. Instead, a settlement agreement with the Kansas Corporation Commission agreed to pass the cost of $74 million onto central Kansas customers.
Evergy customers saw their monthly bills increase by $4.64 in December 2023. Evergy Metro customers saw their bills decrease by $6.07.
Evergy said in its third quarter report that its primary earnings driver was the new retail rates followed by load growth and Federal Energy Regulatory Commission (FERC) investments. As a result of higher earnings, the company agreed to increase dividends to shareholders by 4% to $2.67 per share, annualized.
"Over six years without base rate increases, we delivered more than $1 billion in merger savings to our customers and improved the rate competitiveness of our Kansas rates," an Evergy spokeswoman told 27 News. "When you compare third quarter of 2023 vs 2024, increased rates are an earnings driver."
The third quarter earnings per share (EPS) increase from $1.88 to $2.02 was attributed to:
- $0.10 from new retail rates.
- $0.07 from tax items.
- $0.06 from FERC investments.
- $0.05 from other sources.
- $0.02 from weather demand.
- $0.01 from operation and management.
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