Kansas House Bill HB2227

Kansas 2023-2024 Regular Session

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

Caption

Authorizing certain power purchase agreements with renewable energy suppliers, exempting the sales of electricity pursuant to power purchase agreements from public utility regulation and requiring electric public utilities to enter into parallel generation contracts with certain customers of the utility.

Impact

The implementation of HB 2227 is expected to alter the landscape of energy regulation within Kansas. By allowing renewable energy suppliers to enter into power purchase agreements without being classified under conventional public utility regulations, the bill promotes the growth of renewable energy sources. It will also require public utilities to establish parallel generation contracts with various types of customers, including residential, commercial, schools, religious organizations, and military installations. As a result, these customers will have more autonomy in how they manage their energy needs and benefit from the generation of renewable energy.

Summary

House Bill 2227 is a legislative measure designed to facilitate the sale of electricity generated by renewable energy suppliers to customer-generators through power purchase agreements. The bill permits renewable energy suppliers to engage in sales of electricity exclusively to their host customer-generators and exempts these transactions from certain regulations that apply to traditional public utilities. This initiative aims to enhance the development of renewable energy resources and create opportunities for consumers to produce and utilize their own energy effectively.

Contention

While the bill's proponents argue that it provides essential support for renewable energy initiatives and fosters greater consumer control over energy usage, there are concerns regarding the regulatory implications for public utilities. Critics may point out that exempting renewable energy suppliers from standard regulations could lead to uneven playing fields in the energy market. Furthermore, the bill necessitates careful monitoring of how consumer agreements impact competition among traditional utilities and their cost structures. The potential for different reimbursement rates based on the type of renewable generator could also be a point of contention as the bill is debated.