Kansas regulator mulls probe of Evergy's deal with hedge fund Elliott
Source: Reuters
U.S. LEGAL NEWS JUNE 12, 2020 / 1:57 PM / UPDATED 6 HOURS AGO
Kansas regulator mulls probe of Evergy's deal with hedge fund Elliott
David French, Svea Herbst-Bayliss
3 MIN READ
(Reuters) - A Kansas regulatory commission disclosed that it is considering an investigation into whether power utility Evergy Inc’s agreement with hedge fund Elliott Management could end up costing consumers.
Evergy’s accord with Elliott established a committee on the utility’s board of directors that is exploring whether the company should be sold or implement a significant cost-cutting program. The committee is due to make a recommendation to the company’s board by July 30.
Kansas Corporation Commission (KCC) staff petitioned the utility regulator to launch a probe into Evergy’s ability to provide efficient service at “just and reasonable rates” as a result of any transaction the company pursues, according to a Thursday filing.
A commission spokeswoman said on Friday the regulator’s leadership will decide on the staff’s request as early as next week.
“Staff is very concerned that Elliott’s focus on increasing shareholder value will place Evergy’s customers at a high risk of paying higher rates or receiving lower quality service in order to support an increase in shareholder value,” the KCC filing said, laying out questions it wants Evergy’s management to answer.
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Read more: https://www.reuters.com/article/us-evergy-elliott-kansas/kansas-regulator-mulls-probe-of-evergys-deal-with-hedge-fund-elliott-idUSKBN23J2SB
