FOR IMMEDIATE RELEASE -- November 14, 2019
Contact: Kevin Kelly (573) 751-9300
Special Incremental Load Rate Contract Approved
for New Sedalia Steel Production Facility
JEFFERSON CITY---The Missouri Public Service Commission has approved a special incremental load rate contract between Evergy Missouri West (EMW) and Nucor Steel Sedalia, LLC (Nucor). Nucor is a steel production facility located in Sedalia, Missouri. The contract establishes the rates and terms of service by which EMW intends to serve Nucor. The tariff implementing the special incremental load rate is expected to take effect on January 1, 2020.
According to evidence in the case, when operational, the Nucor steel mill will be the largest energy user within EMW’s service territory. Nucor expects to begin commercial steel production in the first quarter of 2020.
“The evidence shows that a special contract for Nucor is in the public interest,” said the Commission. “The opening of the Nucor steel plant in Sedalia will provide unquestioned economic development benefits to that city and region, and to the State of Missouri as a whole. The evidence also shows that the steel plant will not be viable without the certain and stable electric rates made available by this special contract and tariff.”
“The rates afforded to Nucor under this special contract and tariff will be greater than EMW’s incremental cost to serve the steel plant, and will contribute to the utility’s fixed costs and thereby provide a financial benefit to all of EMW’s customers.”
Evergy Missouri West provides electric service to approximately 323,470 customers in the Missouri counties of Andrew, Atchison, Barton, Bates, Benton, Buchanan, Carroll, Cass, Cedar, Clay, Clinton, Dade, Daviess, DeKalb, Gentry, Grundy, Harrison, Henry, Holt, Jackson, Johnson, Lafayette, Livingston, Mercer, Nodaway, Pettis, Platte, Ray, St. Clair, Vernon and Worth.