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 C. Proffitt, Director Laura Kelly, Governor Division of the Budget January 31, 2024 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 2588 by House Committee on Energy, Utilities and Telecommunications In accordance with KSA 75-3715a, the following fiscal note concerning HB 2588 is respectfully submitted to your committee. HB 2588 would amend current law to increase the capacity limitation for the total amount of generation facilitates subject to net metering, require generation facilities to be appropriately sized, and establish requirements for exporting power to a utility. The bill would generally apply to interconnection agreements between Kansas customer-generators and utilities. The bill would establish certain parameters on the availability of these agreements relative to total utility rate generation, capacity size of qualifying customer generation facilities, and the availability of time- varying rates for customer generators. The Kansas Corporation Commission indicates that the enactment of the bill would not have a fiscal effect on KCC’s revenues or expenditures. The Citizens’ Utility Ratepayer Board (CURB) indicates that the enactment of the bill, with respect to utility rates in general, could open a general docket with the Kansas Corporation Commission, but the proceedings are not likely to have a fiscal effect on CURB’s revenues or expenditures. The Kansas Association of Counties indicates that the fiscal effect associated with the enactment of the bill cannot be estimated for county governments. The League of Kansas Municipalities indicates that the enactment of the bill would have a fiscal effect on cities from the The Honorable Leo Delperdang, Chairperson Page 2—HB 2588 retail rate generated from the excess energy, in addition to the creation of a cross-subdivision of customers; however, the fiscal effect cannot be estimated. Sincerely, Adam C. Proffitt Director of the Budget cc: Jay Hall, Kansas Association of Counties Peter Barstad, Kansas Corporation Commission Shonda Rabb, Citizens Utility Ratepayer Board Wendi Stark, League of Kansas Municipalities