SESSION OF 2024
SUPPLEMENTAL NOTE ON SENATE BILL NO. 455
As Amended by House Committee on Energy,
Utilities and Telecommunications
Brief*
SB 455, as amended, would add and amend law
regarding electric public utilities, nuclear-powered and coal-
fired electric generating facilities, and the Kansas Corporation
Commission (Commission).
Requirements for Nuclear-Powered and Coal-Fired
Electric Generating Facilities
The bill would include nuclear-powered and coal-fired
electric generating facilities, if determined by the Commission
to be just, reasonable, and necessary for the provision of
sufficient and efficient service.
Additionally, the bill would require nuclear-powered and
coal-fired electric generating facilities to do the following:
●Retain rate base appropriate to the facility;
●Recover expenses associated with operational
costs to provide greater certainty that generating
capacity will be available to all customers, including
during extreme weather events; and
●Recover any portion of the rate base and expenses
that are necessary for generation facilities to
operate at a low-capacity factor or to provide
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*Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at
http://www.kslegislature.org additional capacity while remaining offline during
normal operating conditions.
Abandonment or Retirement of Nuclear-Powered or
Fossil Fuel-Fired Electric Generating Units
The bill would prohibit the Commission from approving
the retirement of a unit, authorizing surcharges or issuance of
bonds for the decommissioning of a unit, or taking any other
action that would authorize or allow for the recovery of costs
related to the retirement of a unit, including stranded asset
recovery, unless:
●The utility demonstrates that the public utility would
be able to meet current and reasonably anticipated
future resource adequacy requirements of the
regional transmission organization or independent
system operator; and
●The abandonment or retirement of the unit will not
harm the utility’s ratepayers or decrease the utility’s
regional rate competitiveness, unless the
Commission determines higher costs are justified
in specified factors and are consistent with the
integrated resource planning framework. The utility
would be required to provide the Commission with
evidence of all known direct and indirect costs
related to the retirement or abandonment of the
unit and demonstrate such cost savings or avoided
or mitigated cost increases to customers will occur
as a result.
Petition for Determination of Ratemaking Principles and
Treatment
The bill would amend current law by extending the
timeline from 180 days to 240 days for the Commission to
make a determination of ratemaking principles and treatment
proposed by a petitioning public utility.
2- 455 The bill would also establish guidelines for the
Commission upon the instance a public utility files a petition
for a determination of ratemaking principles and treatment,
requiring the following:
●The issuance of a determination in an expeditious
manner; and
●When circumstances allow, issue a determination
in a time frame shorter than the 240-day deadline.
The bill would also require a public utility to provide the
Commission a notice no less than 30 days before the filing of
a petition. The bill would require the Commission, upon
receipt of the notice, to provide a notice of the public utility’s
intent to file a petition to each person or entity involved in the
public utility’s most recently concluded base rate case.
The bill would also establish proceedings guidelines:
●The application for intervention in any proceedings
must be submitted no later than 10 days after the
public utility’s filing of a petition for determination of
ratemaking principles and treatments; and
●The Commission must adopt a procedural
schedule for the proceedings no later than 30 days
after a petition is filed for a determination of
ratemaking principles and treatments.
[Note: Similar provisions regarding petitions for
determination of ratemaking principles were included in HB
2527, as amended by the House Committee on Energy,
Utilities and Telecommunications and passed by the House.]
3- 455 Annual Reports
The bill would require the Commission to prepare and
submit to the Legislature by December 1 of each year an
annual report based on the preceding calendar year that
provides:
●The number of unit retirement requests in the state;
●The nameplate capacity of each of the requested
units;
●Whether the request was approved or denied by
the Commission;
●The impact of any Commission-approved
retirement of a unit on the:
○Utility’s and state’s generation capacity by fuel
type;
○Required capacity reserve margins for the
utility and the overall capacity reserve margin
within the state;
○The utility’s need for capacity additions or
expansions at new or existing facilities as a
result of a unit retirement; and
○The utility’s need for additional power or
capacity reserve arrangements, and
●Whether the retirement resulted in stranded costs
for ratepayers that will be recovered by the utility
through securitization or through some other
charge on the customer bill.
The provisions of this section of the bill would expire on
July 1, 2034.
4- 455 Background
The bill was introduced by the Senate Committee on
Utilities at the request of a representative of Evergy.
[Note: The bill was amended by the Senate Committee
on Utilities to include amended provisions of SB 456, the
background of which is listed below.]
SB 455
Senate Committee on Utilities
In the Senate Committee hearing, proponent testimony
was provided by a representative of Evergy. The proponent
indicated the bill would be a tool to provide flexibility for how
Evergy manages its generation fleet. The proponent stated
the language in the bill would allow a coal plant to run less
but still be available for winter and summer peaks when
needed for reliability. The proponent expressed that this
legislation would prevent outside entities from forcing a coal
plant to shut down due to inactivity.
Opponent testimony was provided by a representative
of the Kansas Sierra Club. The representative indicated the
Kansas Sierra Club is uncomfortable with policy proposals
that would prolong coal plant use when more eco-friendly
resources are available. Additionally, the representative
indicated this legislation would not make a significant change
to the current status quo of energy regulation, nor would it
give Kansans or their leaders a comprehensive vision of
Kansas’ energy future.
Neutral testimony was provided by a representative of
the Kansas Industrial Consumers Group and Kansans for
Lower Energy Rates and a representative of the Commission.
Both representatives expressed concern over the necessity of
the bill at this time.
5- 455 The Senate Committee amended the bill to:
●Require the Commission to issue a determination
of ratemaking principles and treatment within 240
days of the date of the petition being filed;
●Establish guidelines for the Commission regarding
the retirement or abandonment of a fossil fuel-fired
electric generating unit;
●Add language describing legislative intent in
regards to the filing of a petition for a determination
of ratemaking principles and treatment; and
●Establish an annual report to be submitted by the
Commission to the Legislature by December 1 of
each year until July 1, 2034.
House Committee on Energy, Utilities and
Telecommunications
In the House Committee hearing, proponent testimony
was provided by representatives of Evergy, Kansans for
Lower Electric Rates and the Kansas Industrial Consumer
Group, Kansas Electric Cooperatives, Inc., the Citizens’ Utility
Ratepayer Board, and the Kansas Chamber. Proponents
generally stated that the bill would help ensure energy
reliability and establish a process to retire generating units.
Opponent testimony was provided by a representative
of the Kansas Sierra Club, stating that, although the
amendment would alleviate some concerns, the bill itself is
not necessary, could be counterproductive, and would be a
costly extension to the life of coal power.
Neutral testimony was provided by a representative of
the Commission, who requested a balloon amendment.
The House Committee amended the bill to:
6- 455 ●Alter the prerequisites needed to permit the
Commission to take action in relation to the
abandonment or retirement of a facility;
●Clarify language regarding the annual report;
●Extend the purview of the bill to include nuclear-
powered facilities;
●Make technical changes.
Fiscal Information
According to the fiscal note prepared by the Division of
the Budget on the bill, as introduced, the Commission and
Citizens’ Utility Ratepayer Board indicated enactment of the
bill would have no fiscal effect.
SB 456
The bill was introduced by the Senate Committee on
Utilities at the request of a representative of the Kansas
Chamber.
Senate Committee on Utilities
In the Senate Committee hearing, proponent testimony
was provided by representatives of the Kansas Chamber,
Kansas Electric Cooperatives, Inc., and Kansas Industrial
Consumers Group and Kansans for Lower Electric Rates.
The proponents indicated the bill is a straightforward
approach to establish criteria to ensure that fossil fuel
generation that customers have paid for will not be
prematurely retired or abandoned without thorough
consideration by the Commission. The proponents explained
the bill would provide certainty to all stakeholders, including
customers, that Kansas will have sufficient generating
resources for the future.
7- 455 Written-only proponent testimony was provided by a
representative of the Citizens’ Utility Ratepayer Board.
Opponent testimony was provided by representatives of
Kansas Interfaith Action and Kansas Sierra Club. The
opponents indicated enactment of the bill is unnecessary as
utilities and regulators already consider a robust set of criteria
and considerations in their evaluations of utility plans and
proposals. The opponents further expressed that without
provisions distinguishing the evaluation of power generation
in near-term or long-term components, the bill would create a
disposition against beneficial investments with payoffs over
time.
Neutral testimony was provided by representatives of
the Commission, the Energy Policy Network, and Evergy.
Written-only neutral testimony was provided by a
representative of The Nature Conservancy.
Fiscal Information
According to the fiscal note prepared by the Division of
the Budget on the bill, as introduced, the Commission and
Citizens’ Utility Ratepayer Board indicated enactment of the
bill would have no fiscal effect.
Kansas Corporation Commission; electric generating facilities; fossil fuels;
generation; rate base; coal-fired electric generating facilities; public utilities; rates;
transmission; fossil-fuel fired electric generation units; retirement; abandonment;
annual retirement request report
8- 455