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 Incs agreement with hedge fund Elliott Management could end up costing consumers.
Evergys accord with Elliott established a committee on the utilitys 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 companys board by July 30.
Kansas Corporation Commission (KCC) staff petitioned the utility regulator to launch a probe into Evergys 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 regulators leadership will decide on the staffs request as early as next week.
Staff is very concerned that Elliotts focus on increasing shareholder value will place Evergys 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 Evergys 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