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 6, 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 2228 by House Committee on Energy, Utilities and Telecommunications In accordance with KSA 75-3715a, the following fiscal note concerning HB 2228 is respectfully submitted to your committee. HB 2228 would require Kansas electric utilities not under the jurisdiction of the Kansas Corporation Commission to make net-metering available under the Net-Metering and Easy Connection Act. The bill would also remove the load size limitation of certain net-metered systems and increase the total generating capacity limit for all net-metered systems from 1.0 percent to 10.0 percent of a utility’s peak demand from the previous year. Additionally, HB 2228 would modify how excess energy generated by a net-metered system offsets a customer’s utility bill. Under current law, such excess energy is credited to the customer at a rate of 100.0 percent of the utility’s monthly system average cost of energy per kilowatt-hour. Under HB 2228, a customer’s balance of excess energy would be reduced by 25.0 percent and carried forward as kilowatt-hours against their energy consumption in subsequent months. According to the League of Kansas Municipalities, enactment of HB 2228 would have an unknown fiscal effect on cities due to the new requirements for municipally owned electrical utilities. The Kansas Corporation Commission and the Citizens’ Utility Ratepayer Board indicate that enactment of HB 2228 would not have a fiscal effect on agency operations. Sincerely, Adam Proffitt Director of the Budget cc: Peter Barstad, Kansas Corporation Commission Shonda Rabb, Citizens Utility Ratepayer Board