Kansas House Bill HB2156

Kansas 2023-2024 Regular Session

• Introduced: 1/24/23
• Refer: 1/24/23
• Failed: 4/30/24

Caption

Authorizing public utilities subject to the jurisdiction of the state corporation commission to establish rates that benefit low-income residential customers.

Impact

The impact of HB2156 on state laws revolves around its provisions to permit below-cost rates for low-income customers while providing some legal protections against accusations of discrimination against other residential customers. This means that utilities could implement pricing designed to alleviate financial strain on low-income households without facing legal challenges usually associated with preferential treatment. The bill aims to enhance the ability of utilities to serve disadvantaged populations, potentially improving affordability and accessibility to essential services.

Summary

House Bill 2156, proposed during the 2023 legislative session, addresses the authority of public utilities to establish rates that specifically benefit low-income residential customers. This bill allows public utilities under the jurisdiction of the state corporation commission to propose rates, terms, or charges that may be lower than the cost of service, as long as they are deemed just and reasonable. This is significant as it establishes a framework for utilities to support financially vulnerable customers without violating existing laws regarding rate equity among different customer groups.

Contention

While the bill seeks to aid low-income customers, it could elicit contention concerning the financial repercussions on other residential consumers. By allowing for rates that may not reflect the full cost of service, there are concerns that this could lead to increased rates for other demographics, which could be seen as unjust or disproportionately burdensome. Additionally, some stakeholders may argue about the implications of altering the existing regulatory framework by providing this type of flexibility in rate-setting, raising questions about the long-term viability and fairness of such an approach.