Evergy franchise with 5% fee was on South Hutchinson council's Monday agenda

South Hutchinson's City Council was scheduled Monday, Oct. 26, to vote on a 10-year franchise letting Evergy run power lines along city streets in exchange for 5% of its electric sales inside the city.

The ordinance granting the non-exclusive franchise to Evergy Kansas South, Inc., Ordinance 26-18, was the fifth action item on the agenda. The packet's motion, second and vote lines are blank, and it includes no minutes from the meeting, so the outcome cannot be confirmed from it.

The ordinance would repeal Ordinance 05-725, the city's existing Evergy franchise. The packet does not state that agreement's fee rate, so it does not show whether 5% is a change for the city or for residents' bills.

According to the ordinance, the 5% applies to what Evergy collects for delivering electricity to homes, businesses and industries in the city under its approved rates. Not counted are late-payment charges, returned-check charges, temporary service charges, customer project contributions, revenue from others' use of Evergy's lines and fees for connecting, disconnecting and reconnecting service.

Evergy would report to the city monthly and pay within 30 days of each month's end, with payments adjusted for bills it cannot collect and its books open to city inspection. The payment would replace all other city licenses, taxes and fees on the company except property taxes, special assessments, sales and excise taxes, and charges unrelated to the electric business.

The packet does not say how much the city now receives from Evergy, which fund the money goes to, or whether Evergy passes the fee on to customers.

The franchise would run 10 years from its effective date. After that it would renew automatically one year at a time unless either side gives notice at least 90 days before a term ends.

With 60 days' written notice, the city could change the fee rate on the fifth or 10th anniversary. Either side could also reopen the agreement if laws change, if the structure of the electric industry changes or if the economic benefit shifts in a material, unintended way.

Evergy would have to locate, move or adjust its lines at no cost to the city for public projects. When a public project mainly benefits a private party, that party would pay for the relocation.

The company would also repair streets, sidewalks and other public improvements it damages. It would hold the city harmless for claims arising from its use of streets, alleys and public easements.

Evergy could trim trees over streets and utility easements, but before routine trimming it would have to contact customers at least a week in advance, in person or by door hanger.

In areas the city annexes, the fee would not apply until 90 days after the city sends Evergy the annexation ordinance, proof of publication and a map.

If the council passed the ordinance, Evergy would have 30 days to file its written acceptance with City Clerk Katie Marcum. Until the new fee takes effect, payments continue under Ordinance 05-725.

The new terms would take effect on the first day of the month after passage, Evergy's acceptance and publication on the city's website. The website serves as the city's official newspaper, and residents can check it for the published ordinance.

The draft's signature block, to be signed by Mayor Kyle Cokeley and attested by Marcum, is dated August 2026 with the day left blank, and the packet does not explain that date.

This article was written using our proprietary AI system, Cronkite. The final decision to publish this article was made by a human. For more info, read our AI policy.

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