Administrative: Utility Tariff Bonds-Qualified Extraordinary Costs

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The Office of the Public Counsel appealed the PSC’s decision to grant Evergy Missouri West Inc.’s request to issue securitized utility tariff bonds to recover extraordinary costs incurred during a winter storm. OPC argued that the calculation of qualified extraordinary costs that could be securitized was unreasonable because those costs could have been offset by a tax deduction, carrying costs should have been calculated using a short-term debt rate, and the wrong discount rate was used.

PSC did not abuse its discretion in declining to offset extraordinary costs with Evergy’s available tax deductions, and the commission correctly calculated carrying costs and the discount rate.

Judgment is affirmed.

In the Matter of the Application of Evergy Missouri West Inc. (MLW No. 80555/Case No. WD85958– 25 pages) (Missouri Court of Appeals, Western District, Martin, J.) Appealed from the Public Service Commission (Lindsay Marie Vangerpen, Jefferson City, for appellant) (Jennifer Leigh Heintz, Jefferson City, and Roger William Steiner, Kansas City, MO for respondents)