Kansas Senate Bill SB214

Kansas 2023-2024 Regular Session

• Introduced: 2/8/23
• Refer: 2/9/23
• Failed: 4/30/24

Caption

Prohibiting public utilities from recovering any dues, donations or contributions to any charitable or social organization or entity through customer rates.

Impact

The implications of SB214 are substantial as it will directly affect how public utilities allocate their budgets and manage their financial responsibilities. By amending existing laws to prevent rate recovery for charitable contributions, the Kansas state corporation commission will need to ensure that audits and rate proceedings are conducted without accounting for these expenditures. This change intends to maintain fairness in rate assessments and protect consumers from potential price hikes supporting non-essential expenditures.

Summary

Senate Bill 214 aims to prohibit public utilities, specifically electric, natural gas, and water companies, from recovering costs associated with dues, donations, or contributions to charitable and social organizations through customer rates. This bill is designed to limit the financial burden on customers by ensuring that utilities cannot pass on these contributions as part of their operational costs. The provisions of the bill are set to take effect on July 1, 2023, marking a significant shift in how public utilities operate within Kansas.

Contention

There may be points of contention surrounding SB214, particularly regarding whether this approach could hinder the ability of public utilities to support community initiatives. Supporters of the bill argue that it will prevent corporations from using ratepayers to fund charitable activities that should be covered through different means. Critics, however, might counter that this impedes the social responsibility of utilities and undermines their role in community development. The discussions around this legislation reflect a broader debate on the balance between consumer protection and corporate social responsibility.