Evergy is optimistic about its future, projecting a retail sales growth of 7% to 8% annually through 2030. This upbeat forecast marks an increase from their earlier estimate of 6%. The company’s leaders shared this information during a recent earnings conference call.
Recently, Evergy has secured a new electric service agreement with a significant customer, raising its total demand from large load contracts to 2.5 gigawatts (GW), up from 1.9 GW three months ago. David Campbell, the chairman, president, and CEO of Evergy, mentioned that the company expects to finalize at least one more such agreement this year.
Furthermore, Evergy has contracts that include an additional 450 megawatts (MW) with major clients, including Panasonic’s electric vehicle battery manufacturing facility. The company is currently negotiating to expand its existing contracts by as much as 1.5 GW and is also in discussions for future contracts ranging from 1.5 GW to 3 GW after 2030.
According to Campbell, these potential customers have already acquired land and signed preliminary agreements. The company is actively assessing solutions for their energy needs.
2.5 GW
Total large load contracts, increasing from the previous 1.9 GW.
4.7%
Year-over-year increase in normalized retail sales for the first quarter.
465 MW
Planned wind and solar capacity additions, down from 4,815 MW forecasted last year.
$151.5M
First-quarter income, a 21% increase from the same time last year.
Evergy serves around 1.7 million customers across eastern Kansas and western Missouri. Their retail sales for the first quarter remained flat at 10.4 million megawatt-hours (MWh). However, when factoring out the effects of a mild winter, weather-adjusted sales rose by 4.7%, as noted by CFO Bryan Buckler.
Residential demand adjusted for weather saw a growth of 3.3%, which Buckler attributed to new customers moving into Evergy’s service areas. Commercial demand increased by 3.8%, mainly supported by the growth of data centers, while industrial demand surged by 10.1% due to the ramp-up of Panasonic’s operations, along with increased use from a previously impacted customer.
“We expect strong growth in the commercial and industrial sectors through 2026, thanks to large customers continually ramping up, including the recent data center project that launched in March,” Buckler stated.
In efforts to support new customers, adding generation capacity contributes positively to Evergy’s $21.6 billion capital investment plan, raising its anticipated annual rate base growth to about 12%, higher than the previous estimate of 11.5%.
In line with their updated outlook, both Evergy Metro and Evergy Missouri West have filed updates with the Missouri Public Service Commission. These updates indicate plans for the addition of 4.7 GW of gas-fired generation by 2044, up from an earlier projection of 3.7 GW.
Additionally, the utilities have abandoned plans for 2.4 GW of wind energy and reduced solar additions to 465 MW from 2,415 MW due to changes in tax credit eligibility and rising renewable energy development costs.
On the financial front, Evergy Metro has requested a $140 million rate increase from the Missouri Public Service Commission, which includes a proposed return on equity of 10.5%. The new rates are expected to be implemented in January.
In the first quarter, Evergy reported a significant increase in income, reaching $151.5 million, or 64 cents per share, up from $125 million, or 54 cents per share, from the same quarter last year. However, revenue for the quarter remained stable at $1.4 billion.
The rise in income was influenced by a rate increase in Kansas, non-regulated energy marketing revenue, and reduced tax expenses, offset partially by elevated depreciation and operational costs.