Kansas 2023-2024 Regular Session

Kansas Senate Bill SB455 Compare Versions

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	1	+	Session of 2024
1	2		SENATE BILL No. 455
2		-	AN ACT concerning electric public utilities; relating to eminent domain; prohibiting public
3		-	utilities from exercising eminent domain for the siting or placement of solar powered
4		-	generation facilities; amending K.S.A. 2023 Supp. 66-104 and repealing the existing
5		-	section.
	3	+	By Committee on Utilities
	4	+	2-6
	5	+	AN ACT concerning electric public utilities; relating to the state
	6	+	corporation commission; authorizing electric public utilities to retain
	7	+	certain electric generating facilities in the utility's rate base; amending
	8	+	K.S.A. 2023 Supp. 66-1239 and repealing the existing section.
6	9		Be it enacted by the Legislature of the State of Kansas:
7		-	Section 1. K.S.A. 2023 Supp. 66-104 is hereby amended to read as
8		-	follows: 66-104. (a) The term "public utility," As used in this act, shall
9		-	be construed to mean "public utility" means every corporation,
10		-	company, individual, association of persons, their trustees, lessees or
11		-	receivers, that now or hereafter may own, control, operate or manage,
12		-	except for private use, any equipment, plant or generating machinery,
13		-	or any part thereof, for the transmission of telephone messages or for
14		-	the transmission of telegraph messages in or through any part of the
15		-	state, or the conveyance of oil and gas through pipelines in or through
16		-	any part of the state, except pipelines less than 15 miles in length and
17		-	not operated in connection with or for the general commercial supply of
18		-	gas or oil, and all companies for the production, transmission, delivery
19		-	or furnishing of heat, light, water or power. No cooperative,
20		-	cooperative society, nonprofit or mutual corporation or association that
21		-	is engaged solely in furnishing telephone service to subscribers from
22		-	one telephone line without owning or operating its own separate central
23		-	office facilities, shall be subject to the jurisdiction and control of the
24		-	commission as provided in this section, except that it shall not construct
25		-	or extend its facilities across or beyond the territorial boundaries of any
26		-	telephone company or cooperative without first obtaining approval of
27		-	the commission. The term "Transmission of telephone messages" shall
28		-	include includes the transmission by wire or other means of any voice,
29		-	data, signals or facsimile communications, including all such
30		-	communications now in existence or as may be developed in the future.
31		-	(b) The term "Public utility" shall also include includes that
32		-	portion of every municipally owned or operated electric or gas utility
33		-	located in an area outside of and more than three miles from the
34		-	corporate limits of such municipality, but regulation of the rates,
35		-	charges and, terms and conditions of service of such utility within such
36		-	area shall be subject to commission regulation only as provided in
37		-	K.S.A. 66-104f, and amendments thereto. Nothing in this act shall
38		-	apply to a municipally owned or operated utility, or portion thereof,
39		-	located within the corporate limits of such municipality or located
40		-	outside of such corporate limits but within three miles thereof.
41		-	(c) Except as provided in this section, the power and authority to
42		-	control and regulate all public utilities and common carriers situated
43		-	and operated wholly or principally within any city or principally
44		-	operated for the benefit of such city or its people, shall be vested
45		-	exclusively in such city, subject only to the right to apply for relief to
46		-	the corporation commission as provided in K.S.A. 66-133, and
47		-	amendments thereto, and to the provisions of K.S.A. 66-104e, and
48		-	amendments thereto. A transit system principally engaged in rendering
49		-	local transportation service in and between contiguous cities in this and
50		-	another state by means of street railway, trolley bus and motor bus
51		-	lines, or any combination thereof, shall be deemed to be a public utility
52		-	as that term is used in this act and shall be subject to the jurisdiction of
53		-	the commission.
54		-	(d) The term "Public utility" shall does not include any activity of
55		-	an otherwise jurisdictional corporation, company, individual,
56		-	association of persons, their trustees, lessees or receivers as to the
57		-	marketing or sale of:
58		-	(1) Compressed natural gas for end use as motor vehicle fuel; or
59		-	(2) electricity that is purchased through a retail electric supplier in
60		-	the certified territory of such retail electric supplier, as such terms are SENATE BILL No. 455—page 2
61		-	defined in K.S.A. 66-1,170, and amendments thereto, for the sole
62		-	purpose of the provision of electric vehicle charging service to end
63		-	users.
64		-	(e) (1) Except as provided in paragraph (2), at the option of an
65		-	otherwise jurisdictional entity, the term "public utility" shall does not
66		-	include any activity or facility of such entity as to the generation,
67		-	marketing and sale of electricity generated by an electric generation
68		-	facility or addition to an electric generation facility that:
69		-	(A) Is newly constructed and placed in service on or after January
70		-	1, 2001; and
71		-	(B) is not in the rate base of:
72		-	(i) An electric public utility that is subject to rate regulation by the
73		-	state corporation commission;
74		-	(ii) any cooperative, as defined by K.S.A. 17-4603, and
75		-	amendments thereto, or any nonstock member-owned cooperative
76		-	corporation incorporated in this state; or
77		-	(iii) a municipally owned or operated electric utility.
78		-	(2) The provisions of this subsection shall not be construed to
79		-	affect the authority of the state corporation commission to regulate any
80		-	activity or facility of an otherwise jurisdictional entity with regard to
81		-	wire stringing pursuant to K.S.A. 66-183 et seq., and amendments
82		-	thereto.
83		-	(f) Additional generating capacity achieved through efficiency
84		-	gains by refurbishing or replacing existing equipment at generating
85		-	facilities placed in service before January 1, 2001, shall not qualify
86		-	under subsection (e).
87		-	(g) For purposes of the authority to appropriate property through
88		-	eminent domain, the term "public utility" shall does not include any
89		-	activity for the siting or placement of:
90		-	(1) Wind powered electrical generators or turbines, including the
91		-	towers; or
92		-	(2) solar powered electric generation equipment, including
93		-	panels.
94		-	Sec. 2. K.S.A. 2023 Supp. 66-104 is hereby repealed. SENATE BILL No. 455—page 3
	10	+	Section 1. K.S.A. 2023 Supp. 66-1239 is hereby amended to read as
	11	+	follows: 66-1239. (a) As used in this section:
	12	+	(1) "Commission" means the state corporation commission;
	13	+	(2) "contract" means a public utility's contract for the purchase of
	14	+	electric power in the amount of at least $5,000,000 annually;
	15	+	(3) "generating facility" means any electric generating plant or
	16	+	improvement to existing generation facilities;
	17	+	(4) "stake" means a public utility's whole or fractional ownership
	18	+	share or leasehold or other proprietary interest in a generating facility or
	19	+	transmission facility;
	20	+	(5) "public utility" means the same as defined in K.S.A. 66-104, and
	21	+	amendments thereto; and
	22	+	(6) "transmission facility" means: (A) Any existing line, and
	23	+	supporting structures and equipment, being upgraded for the transfer of
	24	+	electricity with an operating voltage of 34.5 kilovolts or more of
	25	+	electricity; or (B) any new line, and supporting structures and equipment,
	26	+	being constructed for the transfer of electricity with an operating voltage
	27	+	of 230 kilovolts or more of electricity.
	28	+	(b) (1) Prior to undertaking the construction of, or participation in, a
	29	+	transmission facility, a public utility may file with the commission a
	30	+	petition for a determination of the rate-making principles and treatment, as
	31	+	proposed by the public utility, that will apply to the recovery in wholesale
	32	+	or retail rates of the cost to be incurred by the public utility to acquire such
	33	+	public utility's stake in the transmission facility during the expected useful
	34	+	life of the transmission facility.
	35	+	(2) The commission shall issue an order setting forth the rate-making
	36	+	principles and treatment that will be applicable to the public utility's stake
	37	+	in the transmission facility in all rate-making proceedings on and after
	38	+	such time as the transmission facility is placed in service or the term of the
	39	+	contract commences.
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	76	+	(3) The commission in all proceedings in which the cost of the public
	77	+	utility's stake in the transmission facility is considered shall utilize the rate-
	78	+	making principles and treatment applicable to the transmission facility.
	79	+	(4) If the commission fails to issue a determination within 180 days
	80	+	of the date a petition for a determination of rate-making principles and
	81	+	treatment is filed, the rate-making principles and treatment proposed by
	82	+	the petitioning public utility will be deemed to have been approved by the
	83	+	commission and shall be binding for rate-making purposes during the
	84	+	useful life of the transmission facility.
	85	+	(5) If the commission does not have jurisdiction to set wholesale rates
	86	+	for use of the transmission facility the commission need not consider rate-
	87	+	making principles and treatment for wholesale rates for the transmission
	88	+	facility.
	89	+	(c) (1) Prior to undertaking the construction of, or participation in, a
	90	+	generating facility, prior to entering into a new contract or prior to retiring
	91	+	or abandoning a generating facility, or within a reasonable time after
	92	+	retirement or abandonment if filing before retirement or abandonment is
	93	+	not possible under the circumstances, a public utility may file with the
	94	+	commission an application for a determination of the rate-making
	95	+	principles and treatment, as proposed by the public utility, that will apply
	96	+	to:
	97	+	(A) Recovery in wholesale or retail rates of the cost to be incurred by
	98	+	the public utility to acquire such public utility's stake in the generating
	99	+	facility during the expected useful life of the generating facility or the
	100	+	recovery in rates of the contract during the term thereof; or
	101	+	(B) reflection in wholesale or retail rates of the costs to be incurred
	102	+	and the cost savings to be achieved by the public utility in retiring or
	103	+	abandoning such public utility's stake in the generating facility, including,
	104	+	but not limited to, the reasonableness of such retirement or abandonment.
	105	+	(2) Any utility seeking a determination of rate-making principles and
	106	+	treatment under subsection (c)(1) shall as a part of its filing submit the
	107	+	following information: (A) A description of the public utility's
	108	+	conservation measures; (B) a description of the public utility's demand
	109	+	side management efforts; (C) the public utility's ten-year generation and
	110	+	load forecasts; and (D) a description of all power supply alternatives
	111	+	considered to meet the public utility's load requirements.
	112	+	(3) In considering the public utility's supply plan, the commission
	113	+	may consider if the public utility issued a request for proposal from a wide
	114	+	audience of participants willing and able to meet the needs identified under
	115	+	the public utility's generating supply plan, and if the plan selected by the
	116	+	public utility is reasonable, reliable and efficient.
	117	+	(4) The commission shall issue an order setting forth the rate-making
	118	+	principles and treatment that will be applicable to the public utility's stake
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	162	+	in the generating facility or to the contract in all rate-making proceedings
	163	+	on and after such time as the generating facility is:
	164	+	(A) Placed in service or the term of the contract commences; or
	165	+	(B) retired or abandoned.
	166	+	(5) The commission in all proceedings in which the cost of the public
	167	+	utility's stake in the generating facility or the cost of the purchased power
	168	+	under the contract is considered shall utilize the rate-making principles and
	169	+	treatment applicable to the generating facility, contract or retired or
	170	+	abandoned generating facility.
	171	+	(6) If the commission fails to issue a determination within 180 days
	172	+	of the date a petition for a determination of rate-making principles and
	173	+	treatment is filed, the rate-making principles and treatment proposed by
	174	+	the petitioning public utility will be deemed to have been approved by the
	175	+	commission and shall be binding for rate-making purposes during the
	176	+	useful life of the generating facility, during the term of the contract or
	177	+	during the period when the cost of the retired or abandoned generating
	178	+	facility is reflected in customer rates.
	179	+	(d) The public utility shall have one year from the effective date of
	180	+	the determination of the commission to notify the commission whether it
	181	+	will construct or participate in the construction of the generating or
	182	+	transmission facility, whether it will perform under terms of the contract or
	183	+	whether it will retire or abandon the generating facility.
	184	+	(e) If the public utility notifies the commission within the one-year
	185	+	period that the public utility will not construct or participate in the
	186	+	construction of the generating or transmission facility, that it will not
	187	+	perform under the terms of the contract or that it will not retire or abandon
	188	+	the generating facility, then the determination of rate-making principles
	189	+	pursuant to subsection (b) or (c) shall be of no further force or effect, shall
	190	+	have no precedential value in any subsequent proceeding, and there shall
	191	+	be no adverse presumption applied in any future proceeding as a result of
	192	+	such notification.
	193	+	(f) If the public utility notifies the commission under subsection (d)
	194	+	that it will construct or participate in a generating facility or purchase
	195	+	power contract and subsequently does not, or that it will retire or abandon
	196	+	a generating facility and subsequently does not, it will be required to notify
	197	+	the commission immediately and file an alternative supply plan with the
	198	+	commission pursuant to subsection (c) within 90 days.
	199	+	(g) For coal-fired electric generating facilities, if determined by the
	200	+	commission to be just, reasonable and necessary for the provision of
	201	+	sufficient and efficient service, an electric public utility shall be permitted
	202	+	to:
	203	+	(1) Retain such facilities in such utility's rate base;
	204	+	(2) recover expenses associated with the operation of such facilities
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	248	+	that remain in service to provide greater certainty that generating capacity
	249	+	will be available to provide essential service to customers, including
	250	+	during extreme weather events; and
	251	+	(3) recover any portion of such utility's rate base and prudently
	252	+	incurred expenses necessary for such facilities:
	253	+	(A) To operate at a low-capacity factor; or
	254	+	(B) that are offline during normal operating conditions and providing
	255	+	capacity only.
	256	+	Sec. 2. K.S.A. 2023 Supp. 66-1239 is hereby repealed.
95	257		Sec. 3. This act shall take effect and be in force from and after its
96	258		publication in the statute book.
97		-	I hereby certify that the above BILL originated in the
98		-	SENATE, and passed that body
99		-	__________________________
100		-	SENATE adopted
101		-	Conference Committee Report ________________
102		-	_________________________
103		-	President of the Senate.
104		-	_________________________
105		-	Secretary of the Senate.
106		-
107		-	Passed the HOUSE
108		-	as amended _________________________
109		-	HOUSE adopted
110		-	Conference Committee Report ________________
111		-	_________________________
112		-	Speaker of the House.
113		-	_________________________
114		-	Chief Clerk of the House.
115		-	APPROVED _____________________________
116		-	_________________________
117		-	Governor.
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