As Amended by House Committee
Session of 2024
HOUSE BILL No. 2527
By Committee on Energy, Utilities and Telecommunications
Requested by Laura Lutz, on behalf of Evergy
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AN ACT concerning public utilities; relating to the state corporation
commission; authorizing cost recovery mechanisms for certain rate
base additions; requiring the commission to evaluate the capital
structure of certain public utilities without regard for entities affiliated
with such utility; authorizing certain public utilities to elect a specific
return on equity in rate proceedings; increasing the peak demand
threshold and discount term for public utilities to defer to a
regulatory asset and recover depreciation expenses relating to
certain rate base additions; establishing a cap on such cost
recovery and limiting the time that such cost recovery may be
implemented by a public utility; authorizing new economic
development electric rates for large facilities; removing requirements
for tracking and deferral to a regulatory asset of revenue reductions
caused by economic development rates limiting the time that such
economic development rates for large facilities may be
implemented by a public utility; prohibiting any revenue lost
through the implementation of economic development rates from
being imputed into the electric public utility's revenue
requirement; authorizing a rate adjustment mechanism for the
construction of new gas-fired electric generating facilities; limiting the
time that such rate adjustment mechanism may be implemented by
a public utility; extending the timeline for the commission to make
a determination of ratemaking principles and treatment prior to a
public utility constructing or acquiring a stake in an electric
generation or transmission facility; establishing procedural
requirements to support the timely completion of such proceedings;
amending K.S.A. 2023 Supp. 66-101j and 66-1239 and repealing the
existing sections.
Be it enacted by the Legislature of the State of Kansas:
New Section 1. (a) As used in this section:
(1) "Commission" means the state corporation commission.
(2) "Public utility" means the same as defined in K.S.A. 66-104, and
amendments thereto.
(3) "Qualifying electric plant" means all rate base additions by an
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electric public utility. "Qualifying electric plant" does not include
transmission facilities or new electric generating units.
(4) "Rate base cutoff date" means the date rate base additions are
accounted for in a general rate proceeding. In the absence of a commission
order that specifies the rate base cutoff date, "rate base cutoff date" means
the date as reflected in any jointly proposed procedural schedule submitted
by the parties in the applicable general rate proceeding, or the date that is
otherwise agreed to by such parties.
(5) "Weighted average cost of capital" means the return on rate base
used to determine the revenue requirement or that was approved to be
used for regulatory accounting purposes in the public utility's most
recently completed ordered return on rate base in a general rate
proceeding except that in the absence of any commission determination
made on or after July 1, 2021, and prior to July 1, 2024, to establish the
return on rate base for such public utility, the weighted average cost of
capital shall be determined using the public utility's actual capital structure
as of December 31, 2023, excluding short-term debt, the public utility's
actual cost of long-term debt and preferred stock as of December 31, 2023,
and a cost of common equity of 9.5%.
(b) Notwithstanding any other provision of law except K.S.A. 66-
1239(b)(5), and amendments thereto, commencing on July 1, 2024, a
public utility shall defer to a regulatory asset 100% 90% of all
depreciation expense and return associated with all qualifying electric
plants recorded to plant-in-service on the utility's books if the public utility
has provided notice to the commission of the public utility's election to
make such deferrals pursuant to subsection (f)(1). Such deferral shall
begin on July 1, 2024, if the public utility has notified the commission
of the public utility's election to make such deferral by such date or
shall begin on the date that such election is made if such election is
made after July 1, 2024. Except as provided in subsection (c), subsection
(f)(2) and the provisions of section 2, and amendments thereto, in each
general rate proceeding concluded after August 28, 2018, the balance of
the regulatory asset as of the rate base cutoff date shall be included in the
public utility's rate base without any offset, reduction or adjustment based
upon consideration of any other factor with the regulatory asset balance
arising from deferrals associated with qualifying electric plants placed in
service after the rate base cutoff date to be included in rate base in the next
general rate proceeding.
(c) The regulatory asset balances arising under this section shall be
adjusted to reflect any prudence disallowances ordered by the commission.
This section shall not be construed to affect existing law with respect to
the burdens of production and persuasion in general rate proceedings for
rate base additions.
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(d) Parts of regulatory asset balances created under this section that
are not included in rate base shall include carrying costs at the public
utility's weighted average cost of capital, plus applicable federal, state and
local income or excise taxes. Regulatory asset balances arising under this
section that are included in rate base shall be recovered in rates through a
20-year amortization beginning on the date new rates reflecting such
amortization take effect.
(e) (1) Depreciation expense deferred under this section shall account
for all qualifying electric plants plant placed into service less retirements
of the plant replaced by such qualifying electric plant.
(2) Return deferred under this section shall be determined using the
weighted average cost of capital applied to the change in plant-related rate
base caused by the qualifying electric plant, plus applicable federal, state
and local income or excise taxes. In determining the return deferred, the
public utility shall account for changes in all plant-related accumulated
deferred income taxes and changes in accumulated depreciation, excluding
retirements.
(f) (1) This section shall only apply to any public utility that has
elected to make the deferrals for which this section provides and filed a
notice with the commission of such election.
(2) A public utility that makes such election shall be authorized to
make the deferrals authorized by this section until December 31, 2030,
except that, upon application by such public utility, the commission
may authorize the public utility to continue to make the deferrals
authorized by this section until December 31, 2036. Any such
application shall be filed with the commission on or before December
31, 2028. The commission shall issue a determination on an
application filed pursuant to this subsection within 240 days of the
date that such application is filed. If requested by the public utility, an
intervenor in the application docket or commission staff, the
commission shall hold a hearing on such application. When making a
determination upon such application, the commission may consider
factors that the commission deems just and reasonable and condition
the commission's determination on any factors that are relevant to the
deferrals authorized pursuant to this section. If the commission denies
the public utility's application, such denial shall only act to prohibit
the public utility from making such deferrals after December 31, 2030,
and shall not otherwise affect or terminate any deferral that is
authorized to be made pursuant to this section or any regulatory or
ratemaking treatment of the regulatory assets arising from such
deferrals.
(g) The provisions of this section shall not be construed to restrict
or limit the authority of the commission to authorize a public utility to
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use deferral accounting treatment for any rate base addition, such as a
new electric generating unit, that is not considered a qualifying
electric plant pursuant to this section.
New Sec. 2. (a) As used in this section:
(1) "Commission" means the state corporation commission.
(2) "Large public utility" means a public utility as defined in K.S.A.
66-104, and amendments thereto, that serves not less than 20,000 retail
customers in Kansas on July 1, 2024.
(b) In any general rate proceeding filed pursuant to K.S.A. 66-117,
and amendments thereto, the commission shall evaluate any large public
utility on a stand-alone basis and, for purposes of establishing the revenue
requirement, utilize such public utility's test year capital structure, without
regard to the capital structure or investments of any other entities with
which such public utility may be affiliated, unless the commission finds
based on evidence in the record that the large public utility's parent
company does not hold an investment-grade credit rating from at least one
nationally recognized credit rating agency. The capital structure shall
include the relative proportions of common equity, long-term debt and
preferred stock consistent with the public utility's test year.
(c) (1) In any general rate proceeding filed pursuant to K.S.A. 66-117,
and amendments thereto, a large public utility may elect to base its return
on equity on the fully-litigated case 12-month average from the most
recent report issued in the regulatory research associates regulatory focus
publication, or its successor publication, for the applicable utility type. In
the case of large public utilities that are also electric public utilities, fully-
litigated observations from cases for electric utilities in restructured
jurisdictions or special rider or non-base rate cases in other jurisdictions
shall be excluded from the average. If the large public utility elects to use
such return on equity, such election shall be conclusive and binding on the
commission for purposes of determining the revenue requirement and,
except as provided in paragraph (2), no other evidence of return on equity
shall be admitted.
(2) The commission may establish pursuant to a commission order,
operational metrics for large public utilities which, if achieved, may result
in an adjustment of up to 25 basis points above or below the regulatory
research associates regulatory focus publication, or its successor
publication, to the fully-litigated case average return on equity determined
pursuant to paragraph (1), where dictated by customer service, operations,
changing economic or market conditions or other relevant factors.
(d) The commission shall consider all admissible evidence on return
on equity and select a reasonable return on equity for a large public utility
that does not elect the return on equity treatment in subsection (c)"Public
utility" means the same as defined in K.S.A. 66-104, and amendments
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thereto.
(3) "Qualifying regulatory asset" means any regulatory asset
balance arising pursuant to section 1, and amendments thereto, from
the rate base cutoff date in the public utility's prior general rate
proceeding to the rate base cutoff date in the current general rate
proceeding in which the revenue requirement impact cap is applied.
(4) "Rate base cutoff date" means the date rate base additions
are accounted for in a general rate proceeding. In the absence of a
commission order that specifies the "rate base cutoff date," "rate base
cutoff date" means the date as reflected in any jointly proposed
procedural schedule submitted by the parties in the applicable general
rate proceeding or the date that is otherwise agreed to by the parties.
(5) "Revenue requirement impact cap" means the product of:
(A)
1
/12 of 1.5% multiplied by the number of months that have
elapsed from the effective date of new base rates in an electric public
utility's most recently completed general rate proceeding to the
effective date of new base rates in the general rate proceeding in which
the cap is applied; and
(B) the retail revenue requirement used to set base rates in the
electric public utility's most recently completed general rate
proceeding concluded prior to the general rate proceeding in which
the cap is applied.
(b) The provisions of this section apply to any public utility that
has elected to make the deferrals authorized pursuant to section 1,
and amendments thereto, until the public utility's authority to make
such deferrals expires pursuant to section 1, and amendments thereto.
(c) Any part of a public utility's retail revenue requirement used
to set the public utility's base rates in any general rate proceeding of
the public utility that is concluded on or after July 1, 2024, and that
consists of a revenue requirement arising from inclusion in rate base
of the qualifying regulatory asset balance shall not exceed the revenue
requirement impact cap. If inclusion in rate base of the full balance of
the qualifying regulatory asset balance would cause the public utility
to exceed the revenue requirement impact cap, any part of the
qualifying regulatory asset balance that exceeds the revenue
requirement impact cap shall not be included in rate base and the
qualifying regulatory asset balance shall be reduced accordingly as a
penalty.
Sec. 3. K.S.A. 2023 Supp. 66-101j is hereby amended to read as
follows: 66-101j. (a) Notwithstanding the provisions of K.S.A. 66-101b or
66-109, and amendments thereto, the commission shall authorize an
electric public utility to implement economic development rate schedules
that provide discounts from otherwise applicable standard rates for electric
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service for new or expanded facilities of industrial or commercial
customers that are not in the business of selling or providing goods or
services directly to the general public. To be eligible for such discounts,
such customer shall:
(1) Have incentives from one or more local, regional, state or federal
economic development agencies to locate such new or expanded facilities
in the electric public utility's certified service territory;
(2) qualify for service under the electric public utility's non-
residential and non-lighting rate schedules for such new or expanded
facility; and
(3) not receive the discount together with service provided by the
electric public utility pursuant to any other special contract agreements.
(b) The discount authorized by this section shall only be applicable to
new facilities or expanded facilities that have:
(1) A peak demand that is reasonably projected to be at least 200
kilowatts within two years of the date the customer first receives service
under the discounted rate and is not the result of shifting existing demand
from other facilities of the customer in the electric public utility's certified
service territory and:
(A) Has an annual load factor that is reasonably projected to equal or
exceed the electric public utility's annual system load factor within two
years of the date the customer first receives service under the discounted
rate; or
(B) otherwise warrants a discounted rate based on any of the
following factors:
(i) The number of new permanent full-time jobs created or the
percentage increase in existing permanent full-time jobs created;
(ii) the level of capital investment;
(iii) additional off-peak usage;
(iv) curtailable or interruptible load;
(v) new industry or technology; or
(vi) competition with existing industrial customers; or
(2) a peak demand that is reasonably projected to be at least 300
kilowatts within two years of the date the customer first receives
service under the discounted rate and is not the result of shifting
existing demand from other facilities of the customer in the electric
public utility's certified service territory and:
(A) An annual load factor that is reasonably projected to be at
least 55% within two years of the date the customer first receives
service under the discounted rate; and
(B) the facility shall, once first achieved, maintain the peak
demand and load factor for the remaining duration of the discounted
rate; or
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(3) a peak demand that is reasonably projected to be at least 300
kilowatts 25 megawatts within two years of the date the customer first
receives service under the discounted rate and is not the result of shifting
existing demand from other facilities of the customer in the electric public
utility's certified service territory and:
(A) An annual load factor that is reasonably projected to be at least
55% within two years of the date the customer first receives service under
the discounted rate; and
(B) the facility shall, once first achieved, maintain the peak demand
and load factor for the remaining duration of the discounted rate.
(c) The discount authorized by this section shall be determined by
reducing otherwise applicable charges associated with the rate schedule
applicable to the new or expanded existing facility by a fixed percentage
for each year of service under the discount for a period of up to:
(1) Five years to facilities that qualify pursuant to subsection (b)(1)
or (b)(2); and
(2) 10 years to facilities that qualify pursuant to subsection (b)(2) (b)
(3).
(d) (1) For discounts to facilities that qualify pursuant to subsection
(b)(1), the average of the annual discount percentages shall not:
(1) exceed 20% for discounts that qualify pursuant to subsection (b)
(1), but, except that such discounts may be between 5% to 30% in any
year; and of such five-year period.
(2) For discounts to facilities that qualify pursuant to subsection
(b)(2), the average of the annual discount percentages shall not exceed
40%, except that such discounts may be between 20% and 50% in any
year of such five-year period.
(3) For discounts to facilities that qualify pursuant to subsection (b)
(2) (b)(3), the average of the annual discount percentages shall not
exceed:
(A) For the first five years of the discount period, 40% for discounts
that qualify pursuant to subsection (b)(2), but, except that such discounts
may be between 20% to 50% in any year of such five-year period; and
(B) for the final five years of the discount period, 20%, except that
such discounts may be between 10% and 30% in any year of such five-
year period.
(d)(e) In each general rate proceeding concluded after the effective
date of this section, the commission shall allocate the reduced level of
revenues arising from the discounted rates provided for in this section
through the application of a uniform percentage adjustment to the revenue
requirement responsibility for all customer classes of the electric public
utility providing such discounted rate, including the classes with customers
that qualify for discounts under this section, except for rates for service
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provided to customers under contract rates either approved by the
commission pursuant to K.S.A. 2023 Supp. 66-101i, and amendments
thereto, or the commission's general ratemaking authority July 1, 2024,
the difference in revenues generated by applying the discounted rates
authorized pursuant to this section and the revenues that would have
been generated without such discounts shall not be imputed into the
electric public utility's revenue requirement.
(e) (1) The commission shall approve a tracking mechanism to track
reductions in revenue experienced by the electric public utility serving the
facility as a result of the discount rate from the date the discount rate
becomes effective; and
(2) such reductions in revenue shall be deferred to a regulatory asset
and shall accrue interest at the weighted average cost of capital used by the
commission to set the electric public utility's rates in its most recently
concluded general rate proceeding with the balance of such regulatory
asset to be included in the rate base and revenue requirement of the electric
public utility in each of the utility's general rate proceedings through an
amortization of the balance over a reasonable period until fully collected
from the utility's non-contract rate customers.
(f) The provisions of this section shall not apply to rates for service
provided to customers under contract rates approved by the commission
pursuant to K.S.A. 2023 Supp. 66-101i, and amendments thereto, or the
commission's general ratemaking authority according to custom and
practice of the commission in place prior to the effective date of this
section.
(g) Starting in January 2023, the commission shall biennially provide
a status report to the legislature about any discounts from tariffed rates
authorized pursuant to this section. Such report shall include the:
(1) Number of entities with such discounts;
(2) number of entities with increased load;
(3) number of entities with decreased load;
(4) aggregate load and change in aggregate load on an annual basis;
(5) total subsidy and the subsidy for each individual contract;
(6) annual and cumulative rate impact on non-contract rate
customers; and
(7) estimated economic development impact of entities with
discounted rates that occurred as a result of such discounts through an
evaluation of the annual: (A) Total employment for such entities; (B)
change in employment for such entities; and (C) tax revenue generated by
such entities.
(h) An electric public utility shall be authorized to only
implement discounted rates for facilities that qualify for such
discounted rates pursuant to subsection (b)(3) until December 31,
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2030, except that, upon application by such public utility, the
commission may authorize the public utility to continue to implement
such discounted rates for facilities that qualify for such discounted
rates pursuant to subsection (b)(3) until December 31, 2036. Any such
application shall be filed with the commission on or before December
31, 2028. The commission shall issue a determination on an
application filed pursuant to this subsection within 240 days of the
date that such application is filed. If requested by the public utility, an
intervenor in the application docket or commission staff, the
commission shall hold a hearing on such application. When
considering and making a determination upon such application, the
commission may consider factors that the commission deems just and
reasonable and condition the commission's determination on any
factors that are relevant to the discounted rates for facilities that
qualify for such discounted rates pursuant to subsection (b)(3). If the
commission denies the public utility's application, such denial shall
only act to prohibit the public utility from implementing discounted
rates for facilities that qualify for such discounted rates pursuant to
subsection (b)(3) after December 31, 2030, and shall not otherwise
affect or terminate any discounted rates implemented by the public
utility pursuant to this section or any regulatory or ratemaking
treatment of such discounted rates.
(i) For the purposes of this section:
(1) "Electric public utility" means the same as prescribed defined in
K.S.A. 66-101a, and amendments thereto, but does not include any such
utility that is a cooperative as defined in K.S.A. 66-104d, and amendments
thereto, or owned by one or more such cooperatives;
(2) "expanded facility" means a separately metered facility of the
customer, unless the utility determines that the additional costs of separate
metering of such facility would exceed the associated benefits or that it
would be difficult or impractical to install or read the meter, that has not
received service in the electric utility's certified service territory in the
previous 12 months; and
(3) "new facility" means a building of the customer that has not
received electric service in the electric utility's certified service territory in
the previous 12 months.
Sec. 4. K.S.A. 2023 Supp. 66-1239 is hereby amended to read as
follows: 66-1239. (a) As used in this section:
(1) "Commission" means the state corporation commission;
(2) "contract" means a public utility's contract for the purchase of
electric power in the amount of at least $5,000,000 $10,000,000 annually;
(3) "generating facility" means any electric generating plant or
improvement to existing generation facilities;
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(4) "stake" means a public utility's whole or fractional ownership
share or leasehold or other proprietary interest in a generating facility or
transmission facility;
(5) "public utility" means the same as defined in K.S.A. 66-104, and
amendments thereto; and
(6) "transmission facility" means: (A) Any existing line, and
supporting structures and equipment, being upgraded for the transfer of
electricity with an operating voltage of 34.5 kilovolts or more of
electricity; or (B) any new line, and supporting structures and equipment,
being constructed for the transfer of electricity with an operating voltage
of 230 kilovolts or more of electricity.
(7) "Weighted average cost of capital" means the same as defined in
section 1, and amendments thereto.
(b) (1) Prior to undertaking the construction of, or participation in, a
transmission facility, a public utility may file with the commission a
petition for a determination of the rate-making principles and treatment, as
proposed by the public utility, that will apply to the recovery in wholesale
or retail rates of the cost to be incurred by the public utility to acquire such
public utility's stake in the transmission facility during the expected useful
life of the transmission facility.
(2) The commission shall issue an order setting forth the rate-making
principles and treatment that will be applicable to the public utility's stake
in the transmission facility in all rate-making proceedings on and after
such time as the transmission facility is placed in service or the term of the
contract commences.
(3) The commission in all proceedings in which the cost of the public
utility's stake in the transmission facility is considered shall utilize the rate-
making principles and treatment applicable to the transmission facility.
(4) If the commission fails to issue a determination within 180 240
days of the date a petition for a determination of rate-making principles
and treatment is filed, the rate-making principles and treatment proposed
by the petitioning public utility will be deemed to have been approved by
the commission and shall be binding for rate-making purposes during the
useful life of the transmission facility.
(5) If the commission does not have jurisdiction to set wholesale rates
for use of the transmission facility the commission need not consider rate-
making principles and treatment for wholesale rates for the transmission
facility.
(c) (1) Prior to undertaking the construction of, or participation in,
acquiring a stake in a generating facility, prior to entering into a new
contract or prior to retiring or abandoning a generating facility, or within a
reasonable time after retirement or abandonment if filing before retirement
or abandonment is not possible under the circumstances, a public utility
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may file with the commission an application for a determination of the
rate-making principles and treatment, as proposed by the public utility, that
will apply to:
(A) Recovery in wholesale or retail rates of the cost to be incurred by
the public utility to acquire such public utility's stake in the generating
facility during the expected useful life of the generating facility or the
recovery in rates of the contract during the term thereof; or
(B) reflection in wholesale or retail rates of the costs to be incurred
and the cost savings to be achieved by the public utility in retiring or
abandoning such public utility's stake in the generating facility, including,
but not limited to, the reasonableness of such retirement or abandonment.
(2) Any utility seeking a determination of rate-making principles and
treatment under subsection (c)(1) shall as a part of its filing submit the
following information: (A) A description of the public utility's
conservation measures; (B) a description of the public utility's demand
side management efforts; (C) the public utility's ten-year generation and
load forecasts; and (D) a description of all power supply alternatives
considered to meet the public utility's load requirements describe how the
public utility's stake in the generating facility is consistent with the public
utility's most recent preferred plan and resource acquisition strategy
submitted to the commission.
(3) In considering the public utility's supply preferred plan and
resource acquisition strategy, the commission may consider if the public
utility issued a request for proposal from a wide audience of participants
willing and able to meet the needs identified under the public utility's
generating supply preferred plan, and if the plan selected by the public
utility is reasonable, reliable and efficient.
(4) The commission shall issue an order setting forth the rate-making
principles and treatment that will be applicable to the public utility's stake
in the generating facility or to the contract in all rate-making proceedings
and all securitization proceedings on and after such time as the generating
facility is:
(A) Placed in service or the term of the contract commences; or
(B) retired or abandoned.
(5) (A) With respect to a new gas-fired generating facility, unless the
commission timely elects not to set forth ratemaking principles applicable
in the future on the grounds that acquiring a stake in such a generating
facility is not reasonable, then notwithstanding any other provision of law,
the public utility shall be permitted to implement a new rate adjustment
mechanism designed to recover the return on 100% of amounts recorded
to construction work in progress on the public utility's books for the public
utility's stake in such a generating facility, which shall not exceed the
definitive cost estimate found reasonable by the commission in a
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proceeding conducted pursuant to this section for the public utility's
acquisition of the public utility's stake in such generating facility,
unless otherwise ordered by the commission in a subsequent
proceeding, at the weighted average cost of capital without offset,
adjustment or reduction for any other issue or consideration, except that
such return shall be in lieu of any otherwise applicable allowance for
funds used during construction that would have accrued from and after the
effective date of inclusion of construction work in progress in such rate
adjustment mechanism. A rate adjustment mechanism authorized pursuant
to this section shall become effective not sooner than 365 days after
construction of the generation facility begins and within 30 60 days of the
filing for the establishment of such mechanism by the public utility. As
construction of the public utility's stake in such a generating facility
continues and the balance of construction work in progress grows, the rate
adjustment mechanism in effect shall be subject to periodic increases,
without adjustment, offset or reduction for any other issue or
consideration, except that such periodic increases shall not occur more
frequently than once every six months. Except as provided in this section,
the public utility's customers shall be charged pursuant to such rate
adjustment mechanism until such time as new base rates reflecting the
public utility's investment in such generating facility take effect, with such
base rates to include a deferral for depreciation expense incurred and
carrying costs on any unrecovered portion of such investment at the public
utility's weighted average cost of capital as determined in the rate-making
proceeding setting such base rates that occurred between the date such
generation facility was placed in service on the public utility's books and
the effective date of base rates in such proceeding. A rate adjustment
mechanism authorized pursuant to this section shall be permitted to
remain in effect for a period not to exceed six years.
(B) If a public utility implements a rate adjustment mechanism
pursuant to this paragraph and subsequently terminates the initiative
to acquire a stake in the generating facility, the commission shall have
the authority, after a hearing is held on the matter, to order the public
utility to refund customers any amounts collected through such rate
adjustment mechanism.
(C) A public utility shall be authorized to implement a rate
adjustment mechanism pursuant to this paragraph until December 31,
2030, except that, upon application by such public utility, the
commission may authorize the public utility to continue to implement
a rate adjustment mechanism pursuant to this paragraph until
December 31, 2036. Any such application shall be filed with the
commission on or before December 31, 2028. The commission shall
issue a determination on an application filed pursuant to this
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subsection within 240 days of the date that such application is filed. If
requested by the public utility, an intervenor in the application docket
or commission staff, the commission shall hold a hearing on such
application. When considering and making a determination upon such
application, the commission may consider factors that the commission
deems just and reasonable and condition the commission's
determination on any factors that are relevant to the rate adjustment
mechanism authorized pursuant to this paragraph. If the commission
denies the public utility's application, such denial shall only act to
prohibit the public utility from implementing a rate adjustment
mechanism after December 31, 2030, and shall not otherwise affect or
terminate any rate adjustment mechanism implemented by the public
utility pursuant to this section or any regulatory or ratemaking
treatment of such rate adjustment mechanism.
(6) The commission in all proceedings in which the cost of the public
utility's stake in the generating facility or the cost of the purchased power
under the contract is considered shall utilize the rate-making principles and
treatment applicable to the generating facility, contract or retired or
abandoned generating facility.
(6)(7) If the commission fails to issue a determination within 180 240
days of the date a petition for a determination of rate-making principles
and treatment is filed, the rate-making principles and treatment proposed
by the petitioning public utility will be deemed to have been approved by
the commission and shall be binding for rate-making purposes during the
useful life of the generating facility, during the term of the contract or
during the period when the cost of the retired or abandoned generating
facility is reflected in customer rates.
(d) (1) It is the intent of the legislature that when a public utility
files a petition for a determination of ratemaking principles and
treatment pursuant to subsection (b) or (c), consistent with the state
corporation commission's customary practices, the commission shall:
(A) Issue a determination on such petition in an expeditious
manner; and
(B) when circumstances allow, attempt to issue such
determination in a period of time that is less than the 240-day deadline
to issue such determination established pursuant to subsection (b) or
(c).
(2) In furtherance of such legislative intent, a public utility that
intends to file a petition for a determination of ratemaking principles
and treatment pursuant to this section shall provide notice to the
commission of such public utility's intent to file such petition not less
than 30 days before filing a petition pursuant to this section. Upon
receipt of such notice, the commission shall provide notice of the
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public utility's intent to file a petition pursuant to this section to each
person or entity that was a party to or an intervenor in the public
utility's most recently concluded base rate case.
(3) In any proceeding conducted pursuant to this section, any
application for intervention in such proceeding shall be submitted not
later than 10 days after the public utility's filing of a petition for a
determination of ratemaking principles and treatment. The
commission shall adopt a procedural schedule for the proceeding not
later than 30 days after a public utility files a petition for a
determination of ratemaking principles and treatment pursuant to
this section.
(e) The public utility shall have one year from the effective date of
the determination of the commission to notify the commission whether it
will construct or participate in the construction of acquire a stake in the
generating or transmission facility, whether it will perform under terms of
the contract or whether it will retire or abandon the generating facility.
(e)(f) If the public utility notifies the commission within the one-year
period that the public utility will not construct or participate in the
construction of acquire a stake in the generating or transmission facility,
that it will not perform under the terms of the contract or that it will not
retire or abandon the generating facility, then the determination of rate-
making principles pursuant to subsection (b) or (c) shall be of no further
force or effect, shall have no precedential value in any subsequent
proceeding, and there shall be no adverse presumption applied in any
future proceeding as a result of such notification.
(f)(g) If the public utility notifies the commission under subsection
(d) (e) that it will construct or participate acquire a stake in a generating
facility or participate in a purchase power contract and subsequently does
not, or that it will retire or abandon a generating facility and subsequently
does not, it will be required to notify the commission immediately in the
proceeding it initiated pursuant to this section and file an alternative
supply plan with the commission pursuant to subsection (c) within 90 days
provide notification of a change in the utility's preferred resource plan as
required by commission order.
Sec. 5. K.S.A. 2023 Supp. 66-101j and 66-1239 are hereby repealed.
Sec. 6. This act shall take effect and be in force from and after its
publication in the statute book.
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