Kansas 2023-2024 Regular Session

Kansas House Bill HB2154 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	Session of 2023
2	2	HOUSE BILL No. 2154
3	3	By Committee on Energy, Utilities and Telecommunications
4	4	1-24
5	5	AN ACT concerning public utilities; relating to the regulation and
6	6	oversight of public utilities; providing for the statewide election of the
7	7	commissioners of the state corporation commission; establishing an
8	8	election schedule for the election of such commissioners; authorizing
9	9	gubernatorial appointments until commissioners are elected; relating to
10	10	the attorney general; requiring the office of the attorney general to
11	11	represent and protect the collective interests of utility customers in
12	12	utility rate-related proceedings before the state corporation commission
13	13	and in any other judicial or administrative proceeding; establishing the
14	14	utilities regulation division within the office of the attorney general and
15	15	providing duties therefor; exempting the state corporation commission
16	16	from the open meetings act; amending K.S.A. 25-101, 25-101a, 25-
17	17	4001, 25-4142, 66-117a, 66-1236, 66-1502, 66-1503, 66-2204, 74-601,
18	18	74-605, 74-630 and 75-4318 and K.S.A. 2022 Supp. 66-1,251 and
19	19	repealing the existing sections.
20	20	Be it enacted by the Legislature of the State of Kansas:
21	21	New Section 1. (a) Members of the state corporation commission
22	22	shall be elected on a statewide basis in accordance with this section and
23	23	the provisions applicable to the election of state officers on a statewide
24	24	basis pursuant to chapter 25 of the Kansas Statutes Annotated, and
25	25	amendments thereto.
26	26	(b) The primary elections for members of the state corporation
27	27	commission shall commence and be conducted in accordance with the
28	28	following schedule:
29	29	(1) On the first Tuesday in August of 2024, and on the first Tuesday
30	30	in August each four years thereafter, a primary election shall be conducted
31	31	for commission position one established pursuant to K.S.A. 74-601, and
32	32	amendments thereto;
33	33	(2) on the first Tuesday in August of 2026, and on the first Tuesday in
34	34	August each four years thereafter, a primary election shall be conducted
35	35	for commission position two established pursuant to K.S.A. 74-601, and
36	36	amendments thereto; and
37	37	(3) on the first Tuesday in August of 2028, and on the first Tuesday in
38	38	August each four years thereafter, a primary election shall be conducted
39	39	for commission position three established pursuant to K.S.A. 74-601, and
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76	76	amendments thereto. Commencing in August of 2028, such primary
77	77	election shall be held in conjunction with the primary election for
78	78	commission position one.
79	79	(c) The general elections for members of the state corporation shall
80	80	commence and be conducted in accordance with the following schedule:
81	81	(1) On the Tuesday following the first Monday in November of 2024,
82	82	and on the first Tuesday in August each four years thereafter, a general
83	83	election shall be conducted for commission position one established
84	84	pursuant to K.S.A. 74-601, and amendments thereto;
85	85	(2) on the Tuesday following the first Monday in November of 2026,
86	86	and on the first Tuesday in August each four years thereafter, a general
87	87	election shall be conducted for commission position two established
88	88	pursuant to K.S.A. 74-601, and amendments thereto; and
89	89	(3) on the Tuesday following the first Monday in November of 2028,
90	90	and on the first Tuesday in August each four years thereafter, a general
91	91	election shall be conducted for commission position three established
92	92	pursuant to K.S.A. 74-601, and amendments thereto. Commencing in
93	93	November of 2028, such general election shall be held in conjunction with
94	94	the general election for commission position one.
95	95	New Sec. 2. (a) No candidate for commissioner of the state
96	96	corporation commission nor any candidate committee appointed by such
97	97	candidate shall solicit or accept any contribution from a public utility,
98	98	political committee established by a utility or political committee that
99	99	receives contributions from a public utility.
100	100	(b) No public utility, political committee established by a public
101	101	utility or political committee that receives contributions from a public
102	102	utility shall make any contribution to a candidate for commissioner of the
103	103	state corporation commission or to any candidate committee appointed by
104	104	such candidate.
105	105	(c) This section shall be a part of and supplemental to the the
106	106	campaign finance act, K.S.A. 25-4142 et seq., and amendments thereto.
107	107	New Sec. 3. (a) There is hereby created in the office of the attorney
108	108	general the utilities regulation division. The utilities regulation division, at
109	109	the direction of the attorney general, shall:
110	110	(1) Represent and protect the collective interests of all utility
111	111	customers of this state in public utility rate-related proceedings of the state
112	112	corporation commission and in any other state or federal judicial or
113	113	administrative proceedings;
114	114	(2) advocate for reasonable, affordable and regionally competitive
115	115	utility rates for Kansas utility customers;
116	116	(3) balance the interests of residential, business and industrial
117	117	customers when advocating for utility customers;
118	118	(4) promote long-term, cost-effective and reasonable solutions to
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162	162	issues faced by the utility industry; and
163	163	(5) eliminate corporate waste and unnecessary spending by public
164	164	utilities.
165	165	(b) The attorney general shall establish and maintain a principal
166	166	office of the division and shall appoint a director of the division. Subject to
167	167	appropriations therefor, the attorney general shall employ attorneys,
168	168	engineers, accountants, economists or any other personnel necessary to
169	169	carry out the duties of the division. The director and employees of the
170	170	division shall be within the unclassified service under the Kansas civil
171	171	service act.
172	172	(c) (1) Commencing on January 1, 2024, except as provided in
173	173	paragraph (2), the staff of any division of the state corporation commission
174	174	that litigates, argues or participates in public utility rate proceedings for the
175	175	purpose of making non-binding recommendations to the state corporation
176	176	commission on behalf of ratepayers shall be transferred to the division
177	177	subject to the discretion of the attorney general.
178	178	(2) The provisions of paragraph (1) shall not apply to the staff of the
179	179	state corporation commission that litigates, argues or participates in
180	180	telecommunications rate proceedings.
181	181	(3) The attorney general and the state corporation commission shall
182	182	collaborate and undertake all necessary actions to effectuate this
183	183	subsection.
184	184	(d) Subject to appropriations therefor, the attorney general may
185	185	contract for professional services, including, but not limited to, attorneys,
186	186	engineers, accountants and economists as necessary to carry out the duties
187	187	of the division.
188	188	Sec. 4. K.S.A. 25-101 is hereby amended to read as follows: 25-101.
189	189	(a) On the Tuesday succeeding the first Monday in November of each
190	190	even-numbered year, there shall be held a general election to elect officers
191	191	as follows:
192	192	(1) At each alternate election, prior to the year in which the term of
193	193	office of the president and vice-president vice president of the United
194	194	States will expire, there shall be elected the electors of president and vice-
195	195	president of the United States to which the state may be entitled at the time
196	196	of such election;
197	197	(2) at each such election, when the term of a United States senator for
198	198	this state shall expire during the next year, there shall be elected a United
199	199	States senator;
200	200	(3) at each such election there shall be elected the representatives in
201	201	congress to which the state may be entitled at the time of such election;
202	202	(4) at each alternate election, prior to the year in which their regular
203	203	terms of office will expire, there shall be elected a governor, lieutenant
204	204	governor, secretary of state, attorney general, state treasurer and state
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248	248	commissioner of insurance;
249	249	(5) at each such election there shall be elected such members of the
250	250	state board of education as provided by law;
251	251	(6) at each such election, when, in a judicial district in which judges
252	252	of the district court are elected, the term of any district judge expires
253	253	during the next year, or a vacancy in a district judgeship has been filled by
254	254	appointment more than 30 days prior to the election, there shall be elected
255	255	a district judge of such judicial district;
256	256	(7) at each such election, when, in a judicial district in which judges
257	257	of the district court are elected, the term of any district magistrate judge
258	258	expires during the next year, or a vacancy in a district magistrate judgeship
259	259	has been filled by appointment more than 30 days prior to the election,
260	260	there shall be elected a district magistrate judge of such judicial district;
261	261	(8) at each alternate election, prior to the year in which the regular
262	262	term of office of state senators shall expire, there shall be elected a state
263	263	senator in each state senatorial district;
264	264	(9) at each election there shall be elected a representative from each
265	265	state representative district;
266	266	(10) at each alternate election there shall be elected, in each county, a
267	267	county clerk, county treasurer, register of deeds, county or district attorney,
268	268	sheriff and such other officers as provided by law; and
269	269	(11) at each election, when the term of county commissioner in any
270	270	district in any county shall expire during the next year, there shall be
271	271	elected from such district a county commissioner; and
272	272	(12) at each election, when the term of a commissioner of the state
273	273	corporation commission shall expire during the next year, there shall be
274	274	elected one or two commissioners to the state corporation commission in
275	275	accordance with the provisions of section 1, and amendments thereto.
276	276	(b) This section shall apply to the filling of vacancies only so far as is
277	277	consistent with the provisions of law relating thereto.
278	278	Sec. 5. K.S.A. 25-101a is hereby amended to read as follows: 25-
279	279	101a. (a) On the Tuesday succeeding the first Monday in November in
280	280	1978, and each four years thereafter, there shall be elected a governor and
281	281	lieutenant governor running together, a secretary of state, an attorney
282	282	general, a state treasurer, and a state commissioner of insurance and a
283	283	commissioner or commissioners of the state corporation commission
284	284	elected as set forth in section 1, and amendments thereto.
285	285	(b) Every candidate for the office of secretary of state, attorney
286	286	general, state treasurer or, state commissioner of insurance or
287	287	commissioner of the state corporation commission shall be a qualified
288	288	elector of the state of Kansas by the deadline for filing for such office as
289	289	provided in K.S.A. 25-205, and amendments thereto.
290	290	(c) Every candidate for the office of governor and lieutenant governor
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334	334	shall be a qualified elector and shall be 25 years of age or older by the
335	335	deadline for filing for such office as provided in K.S.A. 25-205, and
336	336	amendments thereto.
337	337	(d) Every candidate for the office of attorney general must be
338	338	licensed to practice law within the state of Kansas.
339	339	Sec. 6. K.S.A. 25-4001 is hereby amended to read as follows: 25-
340	340	4001. The governor, lieutenant governor, secretary of state, attorney
341	341	general, state treasurer and, commissioner of insurance and commissioners
342	342	of the state corporation commission shall be elected for terms of four (4)
343	343	years, to begin on the second Monday of January next after their election,
344	344	and until their successors are elected and qualified.
345	345	Sec. 7. K.S.A. 25-4142 is hereby amended to read as follows: 25-
346	346	4142. K.S.A. 25-4119e, 25-4119f, 25-4119g, 25-4142 through 25-4187
347	347	and K.S.A. 25-4153b, and amendments thereto, and section 2, and
348	348	amendments thereto, shall be known and may be cited as the campaign
349	349	finance act.
350	350	Sec. 8. K.S.A. 66-117a is hereby amended to read as follows: 66-
351	351	117a. The secretary of administration and the utilities regulation division
352	352	of the office of the attorney general may intervene on behalf of the state of
353	353	Kansas as a party to any rate hearing conducted by the state corporation
354	354	commission in which the state of Kansas would be affected as a consumer
355	355	by a proposed change in the rates considered at such hearing.
356	356	Sec. 9. K.S.A. 2022 Supp. 66-1,251 is hereby amended to read as
357	357	follows: 66-1,251. The following entities may legally invest any sinking
358	358	funds, moneys or other funds in securitized utility tariff bonds:
359	359	(a) Subject to applicable statutory restrictions on state or local
360	360	investment authority, the state, units of local government, political
361	361	subdivisions, public bodies and public officers, except for:
362	362	(1) Members of the commission and the commission's technical
363	363	advisory and other staff, or;
364	364	(2) board members and employees of the citizens' utility ratepayer
365	365	board; and
366	366	(3) officers and employees of the utilities regulation division of the
367	367	office of the attorney general;
368	368	(b) banks and bankers, savings and loan associations, credit unions,
369	369	trust companies, savings banks and institutions, investment companies,
370	370	insurance companies, insurance associations and other persons carrying on
371	371	a banking or insurance business;
372	372	(c) personal representatives, guardians, trustees and other fiduciaries;
373	373	or
374	374	(d) all other persons authorized to invest in bonds or other obligations
375	375	of a similar nature.
376	376	Sec. 10. K.S.A. 66-1236 is hereby amended to read as follows: 66-
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420	420	1236. (a) In adopting procedures applicable in proceedings pursuant to
421	421	K.S.A. 66-1233, and amendments thereto, the state corporation
422	422	commission shall provide for:
423	423	(1) Confidentiality of information so that the amount of recovery
424	424	requested, the amount of recovery allowed, the method of cost recovery
425	425	requested and the method of cost recovery allowed is not disclosed;
426	426	(2) protective orders for all filings so that the citizens' utility
427	427	ratepayer board and the utilities regulation division of the office of the
428	428	attorney general may receive and review documents if the board
429	429	intervenes;
430	430	(3) procedures to reflect rules of the United States nuclear regulatory
431	431	commission or other regulatory bodies that govern the release of
432	432	information and documentation which an applicant is required to submit to
433	433	support the application or supply to the commission, commission staff or
434	434	intervenors;
435	435	(4) the security cost recovery charge to be unidentifiable on
436	436	customers' bills;
437	437	(5) the security cost recovery charge shall be allocated and added to
438	438	all wholesale and retail rates and future contracts. Any contract existing on
439	439	the effective date of this act, which does not specifically prohibit the
440	440	addition of such charges, shall have such charges added;
441	441	(6) review of security-related filings in an expedited manner with
442	442	reference only to security-related items to assure that the proposed items
443	443	provide enhanced security;
444	444	(7) denial of any expenditure that the commission determines is not
445	445	prudent or is not for security measures and approval of all other
446	446	expenditures; and
447	447	(8) recovery of capital expenditures over a period equal to not more
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450	450	/2 the usable lifetime of the capital investment.
451	451	(b) A determination by the commission of the prudence of an
452	452	expenditure for security measures shall not be based on standard
453	453	regulatory principles and methods of recovery and shall take fully into
454	454	account the findings and intent of the legislature as stated in K.S.A. 66-
455	455	1235, and amendments thereto.
456	456	(c) The provisions of this act and K.S.A. 66-1233, and amendments
457	457	thereto, shall apply recovery of prudent expenditures for enhanced security
458	458	incurred after September 11, 2001.
459	459	(d) Any confidential records or information relating to security
460	460	measures provided or received under the provisions of this act and K.S.A.
461	461	66-1233, and amendments thereto, shall not be subject to subpoena,
462	462	discovery or other demand in any administrative, criminal or civil action.
463	463	Sec. 11. K.S.A. 66-1502 is hereby amended to read as follows: 66-
464	464	1502. (a) (1) Whenever, in order to carry out the duties imposed upon it by
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508	508	law, the state corporation commission, in a proceeding upon its own
509	509	motion, on complaint, or upon an application to it, shall deem it necessary
510	510	to investigate any public utility or common carrier or make appraisals of
511	511	the property of any public utility, such public utility or common carrier, in
512	512	case the expenses reasonably attributable to such investigation or appraisal
513	513	exceed the sum of $100, including both direct and indirect expenses
514	514	incurred by the commission or its staff or, by the citizens' utility ratepayer
515	515	board or by the utilities regulation division of the office of the attorney
516	516	general, shall pay such expenses which shall be assessed against such
517	517	public utility or common carrier by the commission. Such expenses shall
518	518	be assessed beginning on the date that the proceeding is filed or beginning
519	519	three business days after the commission gives the public utility or
520	520	common carrier notice of the assessment by United States mail, whichever
521	521	is later. The state corporation commission shall give such public utility or
522	522	common carrier notice and opportunity for a hearing in accordance with
523	523	the provisions of the Kansas administrative procedure act. At such hearing,
524	524	the public utility or common carrier may be heard as to the necessity of
525	525	such investigation or appraisal and may show cause, if any, why such
526	526	investigation or appraisal should not be made or why the costs thereof
527	527	should not be assessed against such public utility or common carrier. The
528	528	finding of the commission as to the necessity of the investigation or
529	529	appraisal and the assessment of the expenses thereof shall be conclusive,
530	530	except that no such public utility or common carrier shall be liable for
531	531	payment of any such expenses incurred by such state corporation
532	532	commission or, citizens' utility ratepayer board or utilities regulation
533	533	division of the office of the attorney general in connection with any
534	534	proceeding before or within the jurisdiction of any federal regulatory body.
535	535	(2) The commission shall ascertain the expenses of any such
536	536	investigation or appraisal and by order assess such expenses against the
537	537	public utility or common carrier investigated or whose property is
538	538	appraised in such proceeding, and shall render a bill therefor, by United
539	539	States mail, to the public utility or common carrier, either at the conclusion
540	540	of the investigation or appraisal, or from time to time during such
541	541	investigation or appraisal. Such bill shall constitute notice of such
542	542	assessment and demand of payment thereof. Upon a bill rendered to such
543	543	public utility or common carrier, within 15 days after the mailing thereof,
544	544	such public utility or common carrier shall pay to the commission the
545	545	amount of the assessment for which it is billed. Such payment when made
546	546	shall be transmitted by the commission to the state treasurer, who shall
547	547	credit the same to the appropriations made for the use of such commission
548	548	or for the use of the citizens' utility ratepayer board. The total amount, in
549	549	any one state fiscal year for which any public utility or common carrier
550	550	shall be assessed under the provisions of this section shall not exceed the
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594	594	following: (1) For a public utility or common carrier that is under the
595	595	jurisdiction of the commission and has not filed an annual report with the
596	596	commission pursuant to K.S.A. 66-123, and amendments thereto, prior to
597	597	the beginning of the commission's fiscal year, actual expenses, including
598	598	direct and indirect expenses incurred by the commission or the
599	599	commission's staff or, by the citizens' utility ratepayer board or by the
600	600	utilities regulation division of the office of the attorney general; and (2) for
601	601	any other public utility or common carrier under the jurisdiction of the
602	602	commission, 0.6% of the public utility's or common carrier's gross
603	603	operating revenues derived from intrastate operations as reflected in the
604	604	last annual report filed with the commission pursuant to K.S.A. 66-123,
605	605	and amendments thereto, prior to the beginning of the commission's fiscal
606	606	year. The commission may render bills in one fiscal year for costs incurred
607	607	within a previous fiscal year.
608	608	(b) The commission, in accordance with the procedures prescribed by
609	609	subsection (a), may assess against an entity, other than a residential or
610	610	small commercial ratepayer, that is not subject to assessment pursuant to
611	611	subsection (a) actual expenses of any services extended, filings processed
612	612	or actions certified by the commission for the entity.
613	613	Sec. 12. K.S.A. 66-1503 is hereby amended to read as follows: 66-
614	614	1503. (a) (1) The state corporation commission shall determine within 15
615	615	days after each quarter-year for each such quarter-year, the total amount of
616	616	its expenditures during such period of time and, the total amount of
617	617	expenditures of the citizens' utility ratepayer board during such period of
618	618	time and the total amount of expenditures of the utilities regulation
619	619	division of the office of the attorney general. The total amount shall
620	620	include the salaries of members and employees and all other lawful
621	621	expenditures of the commission and, the board and the utilities regulation
622	622	division, including all expenditures in connection with investigations or
623	623	appraisals made under the provisions of K.S.A. 66-1502, and amendments
624	624	thereto, except that there shall not be included in such total amount of
625	625	expenditures for the purpose of this section the expenditures during such
626	626	period of time which are otherwise provided for by fees and assessments
627	627	made under other existing laws for the regulation of motor carriers or for
628	628	administering the oil proration and the oil and gas conservation laws.
629	629	(2) From the amount determined under paragraph (1) of this
630	630	subsection, the commission shall deduct:
631	631	(A) All amounts collected under K.S.A. 66-1502, and amendments
632	632	thereto, during such period of time; and
633	633	(B) the amounts of all fees collected during such period of time under
634	634	the provisions of subsection (b)(1) of K.S.A. 66-1a01(b)(1), and
635	635	amendments thereto.
636	636	(3) To the remainder after making the deductions under paragraph (2)
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680	680	of this subsection, the commission shall add such amount as in its
681	681	judgment may be required to satisfy any deficiency in the prior assessment
682	682	period's assessment and to provide for anticipated increases in necessary
683	683	expenditures for the current assessment period.
684	684	(b) The amount determined under subsection (a) shall be assessed by
685	685	the commission against all public utilities and common carriers subject to
686	686	the jurisdiction of the commission and shall not exceed, during any fiscal
687	687	year, the greater of $100 or 0.2% of the respective utility's or common
688	688	carrier's gross operating revenues derived from intrastate operation as
689	689	reflected in the last annual report filed with the commission pursuant to
690	690	K.S.A. 66-123, and amendments thereto, prior to the beginning of the
691	691	commission's fiscal year or made available to the commission upon
692	692	request. Such assessment shall be paid to the commission within 15 days
693	693	after the notice of assessment has been mailed to such public utilities and
694	694	common carriers, which notice of assessment shall constitute demand of
695	695	payment thereof.
696	696	(c) The commission shall remit all moneys received by or for it for
697	697	the assessment imposed under this section to the state treasurer in
698	698	accordance with the provisions of K.S.A. 75-4215, and amendments
699	699	thereto. Upon receipt of each such remittance, the state treasurer shall
700	700	deposit the entire amount in the state treasury. Ten percent of each such
701	701	deposit shall be credited to the state general fund and the balance shall be
702	702	credited to the public service regulation fund.
703	703	Sec. 13. K.S.A. 66-2204 is hereby amended to read as follows: 66-
704	704	2204. (a) At the time that a natural gas public utility files a petition with
705	705	the commission seeking to establish or change a GSRS, it shall submit
706	706	proposed GSRS rate schedules and its supporting documentation regarding
707	707	the calculation of the proposed GSRS with the petition and shall serve
708	708	commission staff and, the citizens citizens' utility ratepayer board and the
709	709	utilities regulation division of the office of the attorney general with a copy
710	710	of its petition, its proposed rate schedules and its supporting
711	711	documentation.
712	712	(b) (1) When a petition, along with any associated proposed rate
713	713	schedules, is filed pursuant to the provisions of K.S.A. 66-2202 through
714	714	66-2204, and amendments thereto, the commission shall conduct an
715	715	examination of the proposed GSRS;
716	716	(2) the staff of the commission shall examine information of the
717	717	natural gas public utility to confirm that the underlying costs are in
718	718	accordance with the provisions of K.S.A. 66-2202 through 66-2204, and
719	719	amendments thereto, and to confirm proper calculation of the proposed
720	720	charge. The staff shall submit a report regarding its examination to the
721	721	commission not later than 60 days after the petition is filed. No other
722	722	revenue requirement or ratemaking issues may be examined in
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766	766	consideration of the petition or associated proposed rate schedules filed
767	767	pursuant to the provisions of K.S.A. 66-2202 and 66-2204, and
768	768	amendments thereto;
769	769	(3) the commission may hold a hearing on the petition and any
770	770	associated rate schedules and shall issue an order to become effective not
771	771	later than 120 days after the petition is filed; and
772	772	(4) if the commission finds that a petition complies with the
773	773	requirements of K.S.A. 66-2202 through 66-2204, and amendments
774	774	thereto, the commission shall enter an order authorizing the natural gas
775	775	public utility to impose a GSRS that is sufficient to recover appropriate
776	776	pretax revenue, as determined by the commission pursuant to the
777	777	provisions of K.S.A. 66-2202 through 66-2204, and amendments thereto.
778	778	(c) A natural gas utility may effectuate a change in its rate pursuant to
779	779	the provisions of this section no more often than once every 12 months.
780	780	(d) In determining the appropriate pretax revenue, the commission
781	781	shall consider only the following factors:
782	782	(1) The net original cost of eligible infrastructure system investments.
783	783	The net original cost shall be defined as the original cost of eligible
784	784	infrastructure system investments less associated retirements of existing
785	785	infrastructure;
786	786	(2) the accumulated deferred income taxes associated with the
787	787	eligible infrastructure system investments, as adjusted to comply with
788	788	internal revenue service regulations;
789	789	(3) the accumulated depreciation associated with the eligible
790	790	infrastructure system investments;
791	791	(4) the current state, federal and local income tax or excise rates;
792	792	(5) the natural gas public utility's actual regulatory capital structure as
793	793	determined during the most recent general rate proceeding of the natural
794	794	gas public utility;
795	795	(6) the actual cost rates for the natural gas public utility's debt and
796	796	preferred stock as determined during the most recent general rate
797	797	proceeding of the natural gas public utility;
798	798	(7) the natural gas public utility's cost of common equity as
799	799	determined during the most recent general rate proceeding of the natural
800	800	gas public utility;
801	801	(8) the current depreciation rates applicable to the eligible
802	802	infrastructure system investments; and
803	803	(9) in the event information pursuant to paragraphs (5), (6) and (7)
804	804	are unavailable and the commission is not provided with such information
805	805	on an agreed-upon basis, the commission shall utilize the average of the
806	806	recommendations contained in the testimony submitted by the natural gas
807	807	public utility and commission staff during the most recent general rate
808	808	proceeding of the natural gas public utility to determine the capital
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852	852	structure, recommended cost rates for debt and preferred stock and
853	853	recommended cost of common equity to determine the average weighted
854	854	cost of capital.
855	855	(e) (1) The monthly GSRS charge shall be allocated among the
856	856	natural gas public utility's classes of customers in the same manner as
857	857	costs for the same type of facilities was allocated among classes of
858	858	customers in the natural gas public utility's most recent general rate
859	859	proceeding. If that allocation is not available or determinable, the
860	860	commission shall utilize the average of the recommendations contained in
861	861	the testimony submitted by the natural gas public utility and the
862	862	commission staff regarding class allocation of costs. A GSRS shall be
863	863	charged to customers as a monthly fixed charge and not based on
864	864	volumetric consumption. Such monthly charge shall not increase more
865	865	than $.80 per residential customer over the base rates in effect for the
866	866	initial filing of a GSRS. Thereafter, each filing shall not increase the
867	867	monthly charge more than $.80 per residential customer over the most
868	868	recent filing of a GSRS;
869	869	(2) at the end of each twelve-month 12-month calendar period the
870	870	GSRS is in effect, the natural gas public utility shall reconcile the
871	871	differences between the revenues resulting from a GSRS and the
872	872	appropriate pretax revenues as found by the commission for that period
873	873	and shall submit the reconciliation and a proposed GSRS adjustment to the
874	874	commission for approval to recover or refund the difference, as
875	875	appropriate, through adjustments of the GSRS charge.
876	876	(f) (1) A natural gas public utility that has implemented a GSRS
877	877	pursuant to the provisions of K.S.A. 66-2202 through 66-2204, and
878	878	amendments thereto, shall file revised rate schedules to reset the GSRS to
879	879	zero when new base rates and charges become effective for the natural gas
880	880	public utility following a commission order establishing customer rates in
881	881	a general rate proceeding that incorporates in the utility's base rates,
882	882	subject to subsections (h) and (i), eligible costs previously reflected in the
883	883	currently effective GSRS; and
884	884	(2) upon the inclusion in a natural gas public utility's base rates
885	885	subject to subsections (h) and (i) of eligible costs previously reflected in a
886	886	GSRS, the natural gas public utility shall immediately thereafter reconcile
887	887	any previously unreconciled GSRS revenues as necessary to ensure that
888	888	revenues resulting from the GSRS match as closely as possible the
889	889	appropriate pretax revenues as found by the commission for that period.
890	890	(g) A natural gas public utility's filing of a petition or change to a
891	891	GSRS pursuant to the provisions of K.S.A. 66-2202 through 66-2204, and
892	892	amendments thereto, shall not be deemed to be a rate increase for purposes
893	893	of K.S.A. 66-117, and amendments thereto.
894	894	(h) Commission approval of a petition, and any associated rate
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938	938	schedules, to establish or change a GSRS pursuant to the provisions of
939	939	K.S.A. 66-2202 through 66-2204, and amendments thereto, shall in no
940	940	way be binding upon the commission in determining the ratemaking
941	941	treatment to be applied to eligible infrastructure system investments during
942	942	a subsequent general rate proceeding when the commission may undertake
943	943	to review the reasonableness and prudence of such costs. In the event the
944	944	commission disallows, during a subsequent general rate proceeding,
945	945	recovery of costs associated with eligible infrastructure system
946	946	investments previously included in a GSRS, the natural gas public utility
947	947	shall offset its GSRS in the future as necessary to recognize and account
948	948	for any such over collections.
949	949	(i) Nothing in this section shall be construed as limiting the authority
950	950	of the commission to review and consider the costs of infrastructure
951	951	system investments, along with other costs, during any general rate
952	952	proceeding of any natural gas public utility.
953	953	Sec. 14. K.S.A. 74-601 is hereby amended to read as follows: 74-601.
954	954	(a) There is hereby created the state corporation commission, which shall
955	955	consist of three members appointed by the governor, subject to
956	956	confirmation by the senate as provided in K.S.A. 75-4315b, and
957	957	amendments thereto. Except as provided by K.S.A. 46-2601, no person
958	958	appointed to the commission shall exercise any power, duty or function as
959	959	a member of the commission until confirmed by the senate. No more than
960	960	two members of the commission shall belong to the same political party.
961	961	Each member shall be appointed for a term of four years and until a
962	962	successor has been appointed and confirmed. In case of a vacancy in the
963	963	office of a member of the commission, the governor shall appoint a
964	964	successor to fill the vacancy for the unexpired term.
965	965	(b) The terms of members who are serving on the commission on the
966	966	effective date of this act shall expire on March 15, of the year in which
967	967	such member's term would have expired under the provisions of this
968	968	section prior to amendment by this act. Thereafter, members shall be
969	969	appointed for terms of four years and until their successors are appointed
970	970	and confirmed appointed or elected in accordance with this section.
971	971	(b) (1) The terms of the commissioners who are serving on the
972	972	commission on July 1, 2023, shall expire on March 15 of the year in which
973	973	such terms would have expired under the provisions of this section prior to
974	974	the 2023 amendments made to this section by this act except that the term
975	975	of any commissioner shall be extended until the commissioner's successor
976	976	is appointed or elected pursuant to the following:
977	977	(A) The position held by the commissioner whose term expires on
978	978	March 15, 2024, shall be known as commissioner position one. Upon the
979	979	expiration of such term, the governor shall appoint a commissioner to the
980	980	position for a term ending on the second Monday in January 2025.
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1024	1024	Thereafter, such position shall be filled by the commissioner elected to
1025	1025	such position pursuant to section 1, and amendments thereto.
1026	1026	(B) The position held by the commissioner whose term expires on
1027	1027	March 15, 2026, shall be known as commissioner position two. Upon the
1028	1028	expiration of such commissioner's term, the governor shall appoint a
1029	1029	commissioner to the position for a term ending on the second Monday in
1030	1030	January 2027. Thereafter, such position shall be filled by the
1031	1031	commissioner elected to such position pursuant to section 1, and
1032	1032	amendments thereto.
1033	1033	(C) The position held by the commissioner whose term expires on
1034	1034	March 15, 2027, shall known as commissioner position three. Upon the
1035	1035	expiration of such commissioner's term, the governor shall appoint a
1036	1036	commissioner to such position for a term ending on the second Monday in
1037	1037	January 2029. Thereafter, such position shall be filled by the
1038	1038	commissioner elected to such position pursuant to section 1, and
1039	1039	amendments thereto.
1040	1040	(2) Commissioners appointed by the governor pursuant to this
1041	1041	subsection shall be subject to confirmation by the senate as provided in
1042	1042	K.S.A. 75-4315b, and amendments thereto. Except as provided by K.S.A.
1043	1043	46-2601, no person appointed to the commission shall exercise any power,
1044	1044	duty or function as a commissioner until confirmed by the senate. The
1045	1045	governor shall not appoint any person to the commission pursuant to this
1046	1046	subsection if such appointment would result in all commissioners
1047	1047	belonging to the same political party.
1048	1048	(c) Any vacancy occurring on the commission shall be filled pursuant
1049	1049	to K.S.A. 25-312, and amendments thereto.
1050	1050	(c)(d) (1) Except as otherwise provided in paragraph (2), the
1051	1051	commission shall elect one of its members as chairperson of the
1052	1052	commission.
1053	1053	(2) On February 1, 2024, and on February 1 of each of the
1054	1054	succeeding four calendar years, the governor shall appoint the
1055	1055	chairperson of the commission for a one-year term. Such term shall end
1056	1056	on the succeeding February 1. No chairperson appointed pursuant to this
1057	1057	paragraph shall serve more than three consecutive terms as chairperson
1058	1058	of the commission.
1059	1059	(3) The chairperson of the commission shall receive an annual salary
1060	1060	in an amount equal to the annual salary prescribed by law for the chief
1061	1061	judge of the court of appeals, payable monthly. Each other member of the
1062	1062	commission shall receive an annual salary in an amount equal to the
1063	1063	annual salary paid by the state to a judge of the court of appeals, other than
1064	1064	the chief judge, payable monthly. Each member of the commission shall
1065	1065	devote full time to the duties of the office.
1066	1066	(d)(e) The provisions of the Kansas governmental operations
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1110	1110	accountability law apply to the state corporation commission and the
1111	1111	commission is subject to audit, review and evaluation under such law.
1112	1112	Sec. 15. K.S.A. 74-605 is hereby amended to read as follows: 74-605.
1113	1113	(a) No person owning any bonds, stock or property in any railroad
1114	1114	company or other common carrier or public utility, or who is in the
1115	1115	employment of, or who is in any way or manner pecuniarily interested has
1116	1116	any pecuniary interest in, any railroad company or other common carrier
1117	1117	or public utility, shall be eligible, except as hereinafter provided in this
1118	1118	section, to the office of commissioner, attorney or secretary of said the
1119	1119	commission, nor shall such commissioner, attorney or secretary hold any
1120	1120	office of profit or any position under any committee of any political party,
1121	1121	or hold any other position of honor, profit or trust under or by virtue of any
1122	1122	of the laws of the United States or of the state of Kansas. Said Such
1123	1123	commissioners shall be qualified electors of the state, and shall not while
1124	1124	such commissioners engage in any occupation or business inconsistent
1125	1125	with their duties as such commissioners.
1126	1126	And(b) If any member of the commission, at the time of his
1127	1127	appointment such member assumes the office of commissioner, shall own
1128	1128	any bonds, stock or property in any railroad company or other common
1129	1129	carrier or public utility, or is in the employment of, or is in any way or
1130	1130	manner pecuniarily interested has any pecuniary interest in any railroad
1131	1131	company or any common carrier or public utility, such commissioner or
1132	1132	other appointee shall within thirty (30) days divest himself of such interest
1133	1133	or employment, and upon his failing to do so he. If such member fails to
1134	1134	divest of such interest or employment pursuant to this section, such
1135	1135	member shall forfeit his the office, and the governor shall remove such
1136	1136	commissioner and shall appoint his successor, who shall hold until a
1137	1137	successor is appointed and qualified and a vacancy shall be declared.
1138	1138	Such vacancy shall be filled pursuant to section 1, and amendments
1139	1139	thereto.
1140	1140	(c) Each of said the commissioners, attorney and secretary shall be
1141	1141	sworn, before entering upon the discharge of the same, to faithfully
1142	1142	perform the duties of the respective offices. Said The commission is
1143	1143	authorized and empowered to employ, subject to the approval of the
1144	1144	governor, such extra accountants, engineers, experts and special assistants
1145	1145	as in its the commission's judgment may be necessary and proper to carry
1146	1146	the provisions of this act into effect, and to fix their compensation; and.
1147	1147	Such employees shall hold their office during at the pleasure of said the
1148	1148	commission: Provided, That. No person related by blood or marriage to
1149	1149	any member of such commission shall be appointed or employed by said
1150	1150	the commission.
1151	1151	Sec. 16. K.S.A. 74-630 is hereby amended to read as follows: 74-630.
1152	1152	(a) The state corporation commission may appoint persons to the positions
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1196	1196	specified in subsection (b) to serve as full-time employees of the state.
1197	1197	Such persons shall be in the unclassified service of the Kansas civil service
1198	1198	act and shall receive compensation fixed by the state corporation
1199	1199	commission and approved by the governor, subject to the limitations of
1200	1200	appropriations therefor.
1201	1201	(b) The offices to which this section apply are the following:
1202	1202	(1) The director of the division of utilities;
1203	1203	(2) the director of the division of conservation;
1204	1204	(3) the director of the division of transportation;
1205	1205	(4) the director of public affairs and consumer protection;
1206	1206	(5) the general counsel; and
1207	1207	(6) the executive director, who shall also serve as secretary to the
1208	1208	state corporation commission.
1209	1209	Sec. 17. K.S.A. 75-4318 is hereby amended to read as follows: 75-
1210	1210	4318. (a) Subject to the provisions of subsection (g), all meetings for the
1211	1211	conduct of the affairs of, and the transaction of business by, all legislative
1212	1212	and administrative bodies and agencies of the state and political and taxing
1213	1213	subdivisions thereof, including boards, commissions, authorities, councils,
1214	1214	committees, subcommittees and other subordinate groups thereof,
1215	1215	receiving or expending and supported in whole or in part by public funds
1216	1216	shall be open to the public and no binding action by such public bodies or
1217	1217	agencies shall be by secret ballot. Meetings of task forces, advisory
1218	1218	committees or subcommittees of advisory committees created pursuant to
1219	1219	a governor's executive order shall be open to the public in accordance with
1220	1220	this act.
1221	1221	(b) Notice of the date, time and place of any regular or special
1222	1222	meeting of a public body or agency designated in subsection (a) shall be
1223	1223	furnished to any person requesting such notice, except that:
1224	1224	(1) If notice is requested by petition, the petition shall designate one
1225	1225	person to receive notice on behalf of all persons named in the petition, and
1226	1226	notice to such person shall constitute notice to all persons named in the
1227	1227	petition;
1228	1228	(2) if notice is furnished to an executive officer of an employees'
1229	1229	organization or trade association, such notice shall be deemed to have been
1230	1230	furnished to the entire membership of such organization or association;
1231	1231	and
1232	1232	(3) the public body or agency may require that a request to receive
1233	1233	notice must be submitted again to the public body or agency prior to the
1234	1234	commencement of any subsequent fiscal year of the public body or agency
1235	1235	during which the person wishes to continue receiving notice, but, prior to
1236	1236	discontinuing notice to any person, the public body or agency must notify
1237	1237	the person that notice will be discontinued unless the person resubmits a
1238	1238	request to receive notice.
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1282	1282	(c) It shall be the duty of the presiding officer or other person calling
1283	1283	the meeting, if the meeting is not called by the presiding officer, to furnish
1284	1284	the notice required by subsection (b).
1285	1285	(d) Prior to any meeting mentioned by subsection (a), any agenda
1286	1286	relating to the business to be transacted at such meeting shall be made
1287	1287	available to any person requesting the agenda.
1288	1288	(e) The use of cameras, photographic lights and recording devices
1289	1289	shall not be prohibited at any meeting mentioned by subsection (a), but
1290	1290	such use shall be subject to reasonable rules designed to insure the orderly
1291	1291	conduct of the proceedings at such meeting.
1292	1292	(f) Except as provided by section 22 of article 2 of the constitution of
1293	1293	the state of Kansas, interactive communications in a series shall be open if
1294	1294	they collectively involve a majority of the membership of the public body
1295	1295	or agency, share a common topic of discussion concerning the business or
1296	1296	affairs of the public body or agency, and are intended by any or all of the
1297	1297	participants to reach agreement on a matter that would require binding
1298	1298	action to be taken by the public body or agency.
1299	1299	(g) The provisions of the open meetings law shall not apply:
1300	1300	(1) To any administrative body that is authorized by law to exercise
1301	1301	quasi-judicial functions when such body is deliberating matters relating to
1302	1302	a decision involving such quasi-judicial functions;
1303	1303	(2) to the prisoner review board when conducting parole hearings or
1304	1304	parole violation hearings held at a correctional institution;
1305	1305	(3) to any impeachment inquiry or other impeachment matter referred
1306	1306	to any committee of the house of representatives prior to the report of such
1307	1307	committee to the full house of representatives; and
1308	1308	(4) if otherwise provided by state or federal law or by rules of the
1309	1309	Kansas senate or house of representatives; and
1310	1310	(5) to the the state corporation commission.
1311	1311	Sec. 18. K.S.A. 25-101, 25-101a, 25-4001, 25-4142, 66-117a, 66-
1312	1312	1236, 66-1502, 66-1503, 66-2204, 74-601, 74-605, 74-630 and 75-4318
1313	1313	and K.S.A. 2022 Supp. 66-1,251 are hereby repealed.
1314	1314	Sec. 19. This act shall take effect and be in force from and after its
1315	1315	publication in the statute book.
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