Session of 2023
HOUSE BILL No. 2225
By Committee on Energy, Utilities and Telecommunications
1-30
AN ACT concerning utilities; relating to electric utilities; including cost
recovery of transmission-related costs for transmission facilities
constructed as a result of a directive from the regional transmission
organization; excluding cost recovery for transmission facilities
constructed as a result of internal or local planning; amending K.S.A.
66-1237 and repealing the existing section.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 66-1237 is hereby amended to read as follows: 66-
1237. (a) Any electric utility subject to the regulation of the state
corporation commission pursuant to K.S.A. 66-101, and amendments
thereto, may seek to recover costs associated with transmission of electric
power, in a manner consistent with the determination of transmission-
related costs from an order of a regulatory authority having legal
jurisdiction, through a separate transmission delivery charge included in
customers' bills. The electric utility's initial transmission delivery charge
resulting from this section may be determined by the commission either
from transmission-related costs approved in the electric utility's most
recent retail rate filing or in an order establishing rates in response to a
general retail rate application by an electric utility.
(b) (1) If an electric utility elects to recover its transmission-related
costs through a transmission delivery charge, such electric utility shall
have the right to implement a transmission delivery charge through an
application to the commission.
(1)(2) If an electric utility proposes to establish its initial transmission
delivery charge other than in connection with an application to the
commission that proposes a general retail rate change the commission
shall, effective the same date as the effective date of the initial
transmission delivery charge, unbundle the electric utility's retail rates in
such a manner that the sum of the revenue to be recovered from the initial
transmission delivery charge and the non-transmission-related retail rates
will be consistent with the revenue that would be recovered from the retail
rates in effect immediately prior to the effective date of the initial
transmission delivery charge.
(2)(3) If an electric utility proposes to establish its initial transmission
delivery charge in connection with an application to the commission for a
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general retail rate change, the commission shall, in its order in such rate
proceeding, determine the electric utility's transmission-related costs
related to its service to Kansas retail customers and determine an initial
transmission delivery charge sufficient to permit the electric utility to
recover from its Kansas retail customers such utility's transmission-related
costs incurred to provide service to such customers.
(c) Except as provided in subsection (d), all transmission-related costs
incurred by an electric utility and resulting from any order of a regulatory
authority having legal jurisdiction over transmission matters, including
orders setting rates on a subject-to-refund basis, shall be conclusively
presumed prudent for purposes of the transmission delivery charge and an
electric utility may change its transmission delivery charge whenever there
is a change in transmission-related costs resulting from such an order. The
commission may also order such a change if the utility fails to do so. An
electric utility shall submit a report to the commission at least 30 business
days before changing the utility's transmission delivery charge. If the
commission subsequently determines that all or part of such charge did not
result from an order described by this subsection, the commission may
require changes in the transmission delivery charge and impose
appropriate remedies, including refunds.
(d) (1) A for-profit, investor-owned electric utility serving more than
20,000 customers in Kansas that elects to recover such utility's
transmission-related costs through a transmission delivery charge
pursuant to this section may include, as a component of such charge, all
transmission-related costs associated with transmission facilities
constructed as a result of a notice to construct or similar directive from a
regional transmission organization or independent system operator that is
regulated by the federal energy regulatory commission, or any successor
agency.
(2) Such for-profit, investor-owned electric utility shall not include,
as a component of a transmission delivery charge, transmission-related
costs associated with transmission facilities constructed as a result of such
utility's internal or local planning processes absent a notice to construct
or similar directive from a regional transmission organization or
independent system operator that is regulated by the federal energy
regulatory commission, or any successor agency.
(3) On July 1, 2023, if a for-profit, investor-owned electric utility
serving more than 20,000 customers in Kansas, is recovering
transmission-related costs as described in subsection (d)(2) through a
transmission delivery charge:
(A) Within 90 days from such date, such utility shall file with the state
corporation commission a revision to such utility's transmission delivery
charge to remove recovery of costs as described in subsection (d)(2); and
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(B) within 240 days of receipt of such utility's request for revision, the
commission shall remove costs described in subsection (d)(2) and include
such costs as a component of such utility's rate base.
Sec. 2. K.S.A. 66-1237 is hereby repealed.
Sec. 3. This act shall take effect and be in force from and after its
publication in the statute book.
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