Division of the Budget
Landon State Office Building Phone: (785) 296-2436
900 SW Jackson Street, Room 504 adam.c.proffitt@ks.gov
Topeka, KS 66612 http://budget.kansas.gov
Adam Proffitt, Director Laura Kelly, Governor
Division of the Budget
February 8, 2023
The Honorable Leo Delperdang, Chairperson
House Committee on Energy, Utilities and Telecommunications
300 SW 10th Avenue, Room 582-N
Topeka, Kansas 66612
Dear Representative Delperdang:
SUBJECT: Fiscal Note for HB 2225 by House Committee on Energy, Utilities and
Telecommunications
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2225 is
respectfully submitted to your committee.
HB 2225 would prohibit electrical utilities from recovering costs associated with
transmission facilities constructed as a result of such utility’s internal or local planning processes.
The bill would only allow the recovery of transmission related costs if such facilities were
constructed due to a directive from a regional transmission organization or independent system
operator that is regulated by the Federal Energy Regulatory Commission. The bill would only
apply to electrical utility companies that are under the jurisdiction of the Kansas Corporation
Commission.
Estimated State Fiscal Effect
FY 2023
SGF
FY 2023
All Funds
FY 2024
SGF
FY 2024
All Funds
Revenue -- -- -- --
Expenditure -- 40,000 -- 40,000
FTE Pos. -- -- -- --
The Citizens’ Utility Ratepayer Board indicates that enactment of HB 2225 would increase
the agency’s involvement in utility rate cases, resulting in $40,000 of additional expenditures from
the agency fee fund in FY 2023, FY 2024, and all subsequent fiscal years. These expenditures
would be made to retain expert consultants to evaluate the recoverability of transmission related The Honorable Leo Delperdang, Chairperson
Page 2—HB 2225
costs and analyze the impact of such costs on consumers’ utility rates. This estimate assumes that
the additional consulting fees would total $60,000 per rate case and that the agency would
intervene in one rate case every 18 months, on average.
According to the Kansas Corporation Commission, enactment of HB 2225 would not have
a fiscal effect on agency operations. Any fiscal effect associated with HB 2225 is not reflected in
The FY 2024 Governor’s Budget Report.
Sincerely,
Adam Proffitt
Director of the Budget
cc: Peter Barstad, Kansas Corporation Commission
Shonda Rabb, Citizens Utility Ratepayer Board