Extending the timelines for the state corporation commission to make a determination regarding rate-making treatment for electric generating or transmission facilities.
Impact
If enacted, HB2597 would amend existing laws to streamline the rate-making process, allowing public utilities to gain approval for their proposed rate-making principles more efficiently. The requirement for the commission to respond within a longer period could reduce delays in project approvals, which advocates argue will facilitate faster infrastructure development. On the flip side, the bill raises concerns regarding regulatory oversight, as the extended timeline may limit the commission's ability to thoroughly assess the implications of rate changes on consumers and overall market conditions.
Summary
House Bill 2597 focuses on public utility regulation in the state of Kansas, specifically addressing the rate-making treatment for electric generating and transmission facilities. The bill proposes extending the timelines for the state corporation commission to determine the applicable rate-making principles following the submission of a petition by a public utility. This extension aims to provide utility companies with greater certainty regarding the costs incurred in constructing and operating such facilities over their useful lives, thereby potentially encouraging investment in electric infrastructure.
Contention
The passage of HB2597 may result in a more centralized authority for public utilities as they navigate rate-making proceedings. Notably, the provision allowing for automatic approval of proposed rate-making principles if the commission fails to act within the specified timeframe could be viewed as diminishing the regulatory role of the commission. Opponents argue that this could lead to less scrutiny over utility practices and potentially result in higher costs for consumers if utilities are given a freer hand in determining their rates.
Establishing a rebuttable presumption against retirement of fossil fuel-fired electric generating units, requiring the state corporation commission to report on such retirements and extending the timelines for the commission to make a determination regarding rate-making treatment for generating or transmission facilities.
Establishing a rebuttable presumption against retirement of fossil fuel-fired electric generating units, requiring the state corporation commission to report on such retirements and extending the timelines for the commission to make a determination regarding rate-making treatment for generating or transmission facilities.
Authorizing electric public utilities to recover certain depreciation and construction work in progress expenses and limiting the time that such recovery may be implemented, authorizing the provision of economic development electric rates for certain large electric customers and limiting the time that such rates may be implemented, extending the timeline for the state corporation commission to issue an order in ratemaking treatment proceedings, authorizing electric public utilities to retain certain generating facilities in the utilty's rate base, prohibiting the commission from authorizing the retirement of certain generating facilities unless certain requirements are met, increasing the capacity limitation for the total amount of net metering facilities that may operate in the service territory of an investor-owned electric public utility, requiring net metering facilities to be appropriately sized based on the customer's average load and establishing requirements for exporting power from a net metering system to a utility.
Providing a property tax exemption for certain new electric generation facilities and sunsetting current property tax exemptions for such facilities removing certain requirements relating to the state corporation commission's determinations of cost recovery and prudent investments.
Electric utility renewable energy standard obligations modified, wind projects exempted from certificate of need proceedings, low-voltage transmission lines included in definition of solar energy generating system for siting purposes, and Public Utility Commission authority modified to issue site permits for electric generation facilities.
Establishing a rebuttable presumption against retirement of fossil fuel-fired electric generating units, requiring the state corporation commission to report on such retirements and extending the timelines for the commission to make a determination regarding rate-making treatment for generating or transmission facilities.
Establishing a rebuttable presumption against retirement of fossil fuel-fired electric generating units, requiring the state corporation commission to report on such retirements and extending the timelines for the commission to make a determination regarding rate-making treatment for generating or transmission facilities.
Authorizing electric public utilities to recover certain depreciation and construction work in progress expenses and limiting the time that such recovery may be implemented, authorizing the provision of economic development electric rates for certain large electric customers and limiting the time that such rates may be implemented, extending the timeline for the state corporation commission to issue an order in ratemaking treatment proceedings, authorizing electric public utilities to retain certain generating facilities in the utilty's rate base, prohibiting the commission from authorizing the retirement of certain generating facilities unless certain requirements are met, increasing the capacity limitation for the total amount of net metering facilities that may operate in the service territory of an investor-owned electric public utility, requiring net metering facilities to be appropriately sized based on the customer's average load and establishing requirements for exporting power from a net metering system to a utility.