Session of 2025
Substitute for HOUSE BILL No. 2149
By Committee on Energy, Utilities and Telecommunications
3-12
AN ACT concerning distributed energy resources; requiring distributed
energy system retailers to disclose certain information to customers
who will construct, install and operate a distributed energy system;
requiring the attorney general to convene an advisory group to establish
a standard form for such disclosures and requiring publication thereof;
requiring electric public utilities to disclose certain information to
distributed energy retailers; providing criteria to determine appropriate
system size for a customer's distributed energy system that is subject to
parallel generation; establishing requirements for interconnection and
operation of a distributed energy system; increasing the total capacity
limitation for an electric public utility's provision of parallel generation
service; establishing powers and limitations relating thereto;
establishing notification requirements for when a system is no longer
producing energy or the customer seeks to repair or rebuild a
distributed energy system; amending K.S.A. 66-1,184 and 66-1268 and
repealing the existing sections.
Be it enacted by the Legislature of the State of Kansas:
New Section 1. (a) As used in sections 1 through 3, and amendments
thereto:
(1) "Distributed energy customer" means a property owner of a
single-family dwelling or multifamily dwelling of two units or fewer and
who is offered a contract from a distributed energy retailer for the
construction, installation or operation of a distributed energy system that is
primarily intended to offset the energy consumption of such single family
or multifamily dwelling.
(2) "Distributed energy retailer" means any person or entity that sells,
markets, solicits, advertises, finances, installs or otherwise makes available
for purchase a distributed energy system in the state of Kansas.
(3) "Distributed energy system" means any device or assembly of
devices and supporting facilities that is capable of feeding excess electrical
power generated by a customer's energy producing system into the utility's
system, such that all energy output and all other services will be fully
consumed by the distributed energy customer or the utility, and that is or
will be subject to an agreement under K.S.A. 66-1,184, 66-1263 et seq.,
and amendments thereto, or a net metering tariff that was voluntarily
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established by a utility.
(4) "Permission to operate" means the same as defined in K.S.A. 66-
1,184, and amendments thereto.
(5) "Utility" means an electric public utility, as defined by K.S.A. 66-
101a, and amendments thereto, any cooperative, as defined by K.S.A. 17-
4603, and amendments thereto, an electric utility owned by one or more
such cooperatives, a nonstock member-owned electric cooperative
corporation incorporated in this state or a municipally owned or operated
electric utility.
(b) No person or entity shall engage in the business or act in the
capacity of a distributed energy retailer within this state unless such person
or entity is registered with the secretary of state, in good standing and
authorized to conduct business in the state.
(c) Prior to entering into a contract with a distributed energy customer
for a distributed energy system, a distributed energy retailer shall provide
such customer a separate disclosure document that:
(1) Is written in at least 10-point type;
(2) is written in the language that the distributed energy retailer used
to speak to the distributed energy customer during the sales process or the
language requested by such customer;
(3) includes a description of the make and model of the distributed
energy system's major components and the expected useful life of the
distributed energy system;
(4) includes a guarantee concerning the quantity of energy that the
distributed energy system will generate on a measurable interval and a
remedy if such system does not comply with such guarantee within one
year following the date the system received permission to operate;
(5) does not contain blank spaces that may be subsequently filled in
with terms or conditions that materially affect the timing, value or
obligation of the contract unless such terms and conditions are separately
acknowledged in writing by the distributed energy customer;
(6) includes, in bold and highlighted type, the total aggregate cost to
the distributed energy customer that will be incurred over the entirety of
the contract. Such total aggregate cost shall be separately acknowledged in
writing by the distributed energy customer;
(7) includes a description of the ownership and transferability of any
tax credits, rebates, incentives or renewable energy certificates in
connection with the distributed energy system;
(8) includes the name and certification number of the individual
certified by the north American board of certified energy practitioners who
will oversee the permitting and installation of the distributed energy
system or the name and license number of the master electrician or
electrical contractor who will oversee the permitting and installation of the
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distributed energy system;
(9) provides a description of the process and all associated fees for
transferring any financing, warranty or other agreements relating to the
distributed energy system to a new owner;
(10) includes the name, phone number, email and mailing address of
the person or entity that the distributed energy customer may contact for
questions regarding performance, maintenance or repair of the distributed
energy system;
(11) includes a description of the assumptions used for any savings
estimates that were provided to the distributed energy customer and
provides a description of the applicable utility billing structure that
pertains to the distributed energy system. Such descriptions and
assumptions shall include the same provisions as outlined in the standard
form published by the attorney general pursuant to section 3, and
amendments thereto;
(12) includes a statement that the distributed energy retailer shall
provide the distributed energy customer proof that, within 30 days of
completion of installation:
(A) All permits required for the installation of the distributed energy
system were obtained prior to installation, if applicable;
(B) the distributed energy system was inspected and approved by a
qualified individual pursuant to the requirements of any local municipal
ordinance or county resolution;
(C) the necessary interconnection applications and documentation
were submitted to and approved by the affected utility; and
(D) the distributed energy system received permission to operate;
(13) includes a statement that any recurring payments for a
distributed energy system shall pause and not be due if such system does
not receive permission to operate within 90 days of the date that the first
recurring payment is due. Such recurring payments may resume at the time
that such system receives permission to operate. Any payments due during
any such pause shall either be forgiven or added to the end of the financing
term and shall not incur any penalties for nonpayment during such term;
(14) includes a statement describing any rate escalation, balloon
payment or potential reconfiguration of payment structure;
(15) includes a statement as to whether operations or maintenance
services are included as part of the original contract price and whether the
costs to remove, reinstall and repair the distributed energy system are
included as part of the original contract price should the distributed energy
system need to be removed, reinstalled or repaired due to natural causes or
due to any exterior repair, replacement, construction or reconstruction
work on the premises;
(16) includes a statement describing the expected start and
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completion dates for the installation of the distributed energy system;
(17) includes a statement indicating whether any warranty or
maintenance obligations related to the distributed energy system may be
transferred by the distributed energy retailer to a third party and, if so, a
statement that provides: "The maintenance and repair obligations under
your contract may be assigned or transferred without your consent to a
third party who shall be registered with the secretary of state, in good
standing and authorized to conduct business in the state and bound to all
the terms of the contract. If a transfer occurs, you will be notified in
writing of any change to the name, mailing address, email or phone
number to use for questions and payments or to request system
maintenance or repair";
(18) includes a statement indicating whether the distributed energy
retailer shall place a lien, notice or other filing on or against real property
as a result of the contract;
(19) includes a statement, in bold and highlighted type, indicating
whether the distributed energy retailer will impose any fees or other costs
upon the distributed energy customer. If any such fees or other costs will
be charged to the distributed energy customer, the aggregate total of such
fees and other costs shall be provided and separately acknowledged in
writing by the distributed energy customer;
(20) includes a statement in capital letters and bold and highlighted
type that states: "[name of distributed energy retailer] is not affiliated with
any utility company or governmental agency and shall not claim any such
affiliation"; and
(21) may include any additional information that the distributed
energy retailer considers appropriate, only if such additional information is
not intended to conceal or obscure the disclosures required pursuant to this
section.
(d) The disclosure statement required pursuant to this section shall be
signed and dated by the distributed energy customer at least one calendar
day after the date that the contract for the distributed energy system was
executed.
(e) (1) Any person or entity that violates the provisions of subsection
(b) or any distributed energy retailer that fails to provide and perform the
disclosures in the form and manner required pursuant to this section or that
makes a materially misleading statement as a part of or when presenting
such disclosures shall be liable for a civil penalty in an amount not to
exceed $10,000 for each such violation. Such violator shall be liable to the
aggrieved person or distributed energy customer, or to the state, for the
payment of such civil penalty. Such civil penalty shall be recoverable in an
action brought by the aggrieved person or customer or the attorney
general, county attorney or district attorney. Any such civil penalty shall be
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in addition to any other relief that may be granted pursuant to any other
remedy available in law or equity.
(2) If a distributed energy retailer fails to comply with this section,
any contract entered into between the distributed energy retailer and the
distributed energy customer that pertains to the distributed energy system
shall be deemed null and void.
(f) This section shall not apply to a transaction of real property on
which a distributed energy system is already located.
(g) The provisions of this section shall take effect and be in force
from and after July 1, 2025.
New Sec. 2. (a) To allow a distributed energy retailer to provide
informed and accurate information to a distributed energy customer
pursuant to section 1, and amendments thereto, upon request of any
distributed energy retailer, a utility shall disclose all applications, rules,
service standards, forms or other documents required for interconnection
of a distributed energy system pursuant to K.S.A. 66-1,184 or 66-1263 et
seq., and amendments thereto, or a net metering tariff that was voluntarily
established by a utility, including the utility's historic amount of
compensation per kilowatt hour for interconnected systems and the current
compensation amount for such systems. Such historic amount of
compensation shall be provided in a dollar amount and shown on a
monthly or similar billing period basis for not less than the preceding five
years.
(b) The provisions of this section shall take effect and be in force
from and after July 1, 2025.
New Sec. 3. (a) The attorney general shall appoint and convene an
advisory group to collectively develop, approve and periodically revise a
standard form that may be used by distributed energy retailers to perform
and provide the the disclosures required pursuant to section 1, and
amendments thereto. Such advisory group shall consist of the attorney
general or the attorney general's designee, representatives from interested
groups, including representatives of distributed energy retailers and
utilities, one or more members of the general public who owns residential
real property in this state, one or more assistant attorneys general and any
other members that the attorney general considers necessary or
appropriate.
(b) On or before July 1, 2025, the attorney general shall publish on
the attorney general's website the most current version of the standard
form that is developed and approved by the advisory group pursuant to this
section.
Sec. 4. K.S.A. 66-1,184 is hereby amended to read as follows: 66-
1,184. (a) As used in this section:
(1) "Avoided cost" means the incremental cost to a utility of electric
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energy that such utility would generate itself or purchase from another
source and as such term is interpreted by the federal energy regulatory
commission from time to time.
(2) "Distributed energy system" means any device or assembly of
devices and supporting facilities that are capable of feeding excess
electric power generated by a customer's energy producing system into the
utility's system, such that all energy output and all other services will be
fully consumed by the customer or the utility.
(3) "Export" means power that flows from a customer's electrical
system through such customer's billing meter and onto the utility's
electricity lines. "Export" includes the sum of power on all phase
conductors.
(4) "Interconnected" means a listed system that is designed to export
power and attached or connected on the customer's side of the retail meter
at the customer's delivery point.
(5) "Listed" means that the device or equipment has been tested and
certified to meet the institute of electrical and electronics engineers safety
standards that specifically pertain to the intended function of the device or
equipment.
(6) "Locational marginal price" means the hourly average market
price of alternating current energy per kilowatt hour established by the
applicable locational marginal price pricing node of the southwest power
pool.
(7) "Monthly system average cost of energy per kilowatt hour" means
the sum of all volumetric costs incurred by an electric utility during a
calendar month or similar billing period as billed to the utility by
generation and transmission providers and any volumetric generation
costs incurred by the utility to generate energy divided by the total amount
of retail kilowatt-hours that the utility sold in such month or billing period.
(8) "Permission to operate" means the operational date of the
customer's distributed energy system as determined by the utility.
(9) "Utility" means any electric public utility as defined in K.S.A. 66-
101a, and amendments thereto, cooperative as defined in K.S.A. 17-4603,
and amendments thereto, electric utility owned by one or more such
cooperatives, nonstock member-owned electric cooperative corporation
incorporated in this state or municipally owned or operated electric
utility.
(10) "Witness test" means an authorized representative of the electric
utility who measures or verifies a specific setting or operational condition.
(b) Except as provided in subsection (b), Except as otherwise
provided in this section, every public utility which provides retail electric
services in this state that provides retail electric service in this state shall
enter into a contract for parallel generation service with any person who is
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a customer of in good standing with such utility, upon request of such
customer, whereby that authorizes such customer may to attach or connect
to the utility's delivery and metering system an apparatus or a listed device
for the purpose of feeding exporting excess electrical power which is
generated by such customer's distributed energy producing system into to
the utility's system. No such apparatus or device shall either cause damage
to the public utility's system or equipment or present an undue hazard to
utility personnel. Every such contract shall include, but need not be limited
to, provisions relating to fair and equitable compensation on such
customer's monthly bill for energy supplied to the utility by such customer.
(b) (1) For purposes of this subsection:
(A) "Utility" means an electric public utility, as defined by K.S.A. 66-
101a, and amendments thereto, any cooperative, as defined by K.S.A. 17-
4603, and amendments thereto, or a nonstock member-owned electric
cooperative corporation incorporated in this state, or a municipally owned
or operated electric utility;
(B) "school" means Cloud county community college and Dodge City
community college.
(2) Every utility which provides retail electric services in this state
shall enter into a contract for parallel generation service with any person
who is a customer of such utility, if such customer is a residential customer
of the utility and owns a renewable generator with a capacity of 25
kilowatts or less, or is a commercial customer of the utility and owns a
renewable generator with a capacity of 200 kilowatts or less or is a school
and owns a renewable generator with a capacity of 1.5 megawatts or less.
Such generator shall be appropriately sized for such customer's anticipated
electric load. A commercial customer who uses the operation of a
renewable generator in connection with irrigation pumps shall not request
more than 10 irrigation pumps connected to renewable generators be
attached or connected to the utility's system. At the customer's delivery
point on the customer's side of the retail meter such customer may attach
or connect to the utility's delivery and metering system an apparatus or
device for the purpose of feeding excess electrical power which is
generated by such customer's energy producing system into the utility's
system. No such apparatus or device shall either cause damage to the
utility's system or equipment or present an undue hazard to utility
personnel.
(c) (1) A utility may require any customer who is seeking to construct
and install a distributed energy system to submit an application prior to
any connection of the distributed energy system with the utility's system,
notify the utility of the proposed distributed energy system and verify that
such system is constructed, installed and operated in accordance with all
applicable standards and codes.
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(2) Any customer that submits an application to construct, install and
operate a distributed energy system shall have the option to remain on a
retail rate tariff that is identical to the same rate class for which such
customer would otherwise qualify as a retail customer who is not
otherwise receiving service under a parallel generation service tariff or
net metering tariff.
(3) A utility shall provide written notice of receipt of any application
submitted pursuant to this section to the applicant within 30 days
following such receipt. A utility shall approve or deny any such
application or a request for system certification pursuant to such an
application within 90 calendar days following receipt of such application
or request. If one or more additional studies are required, a utility shall
not be subject to such 90-day deadline but shall provide the applicant with
an estimated time frame for action on such application and act on such
application as soon as practicable after any such studies are completed. If
the utility denies such application or request, the utility shall provide to
the applicant a list of the reasons for such denial and the corrective
actions needed for approval.
(4) A utility may assess upon any customer requesting to install a
distributed energy system:
(A) A fair and reasonable nonrefundable interconnection application
fee;
(B) any applicable costs incurred by the utility for any study
conducted to verify and allow the requested export capacity to be
interconnected at the customer's point of delivery, including, but not
limited to, costs incurred as a result of the southwest power pool's study
processes; and
(C) costs associated with any related system upgrade costs, devices
and equipment required to be furnished by the utility for the provision of
accepting the requested export capacity.
(d) (1) Every such contract for parallel generation service shall
include, but need not be limited to, provisions relating to fair and equitable
compensation for energy supplied exported to the utility by such customer.
Except as authorized pursuant to paragraph (3), such compensation shall
be not less than 100% of the utility's monthly system average cost of
energy per kilowatt hour except that in the case of renewable generators
with a capacity of 200 kilowatts or less, such compensation shall be not
less than 150% of the utility's monthly system average cost of energy per
kilowatt hour not less than 100% of the utility's monthly avoided cost.
(2) A utility may shall credit such compensation to the customer's
account or pay such compensation to the customer at least annually or
when the total compensation due equals $25 or more.
(3) A utility shall disclose to any customer the formula that the utility
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uses to determine the compensation that the utility provides pursuant to a
contract for parallel generation service.
(4) (A) A utility may use locational marginal price or the monthly
system average cost of energy per kilowatt hour to determine
compensation for energy exported to the utility by the customer. Any such
utility that uses locational marginal price or monthly system average cost
of energy per kilowatt hour shall compensate the customer for the energy
exported to the utility at least annually. Such compensation may be paid to
such customer or credited to the customer's account. When determining
compensation pursuant to this paragraph, in no case shall a utility issue
an invoice for energy exported to the utility by the customer's distributed
energy system. Upon the request of any customer who is subject to such
locational marginal price compensation pursuant to this paragraph, the
utility shall disclose the locational marginal price and the corresponding
amount of energy exported to the utility by the customer's distributed
energy system.
(B) The provisions of this paragraph shall expire on July 1, 2030.
(3)(e) A customer-generator of any investor owned investor-owned
utility shall have the option of entering into a contract pursuant to this
subsection (b) section or utilizing the net metering and easy connection
act. The customer-generator shall exercise the option in writing, filed with
the utility.
(c)(f) The following terms and conditions shall apply to contracts
entered into under subsection (a) or (b) for parallel generation service:
(1) The utility will supply shall furnish, own, and maintain, at the
utility's expense, all necessary meters and associated equipment utilized for
billing. In addition, and for the purposes of monitoring customer
generation and load,;
(2) the utility may install, at its the utility's expense, load research
metering. meters and equipment to monitor customer generation and load.
The customer shall supply provide, at no expense to the utility, a suitable
location for such meters and associated equipment used for billing and for
load research;
(2)(3) for the purposes of insuring ensuring the safety and quality of
utility system power, the utility shall have the right to require the customer,
at certain times and as electrical operating conditions warrant, to limit the
production of electrical energy from the generating facility to an amount
no greater than the load at the customer's facility of which the generating
facility is a part;
(3)(4) the customer shall furnish, install, operate, and maintain in
good order and repair and without cost to the utility, such relays, locks and
seals, breakers, automatic synchronizer, and other control and protective
apparatus as shall be designated by the utility as being required as, at the
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customer's expense, a listed device that is suitable for the operation of the
generator customer's distributed energy system in parallel with the utility's
system. In any case where the customer and the utility cannot agree to
terms and conditions of any such contract, the state corporation
commission shall establish the terms and conditions for such contract. In
addition,
(5) the utility may install, own, and maintain a disconnecting device
located near the electric meter or meters. or may require that a customer's
distributed energy system contain a switch, circuit breaker, fuse or other
device or feature that may be accessed by the utility at any time and would
provide an authorized utility worker the ability to manually disconnect the
customer's distributed energy system from the utility's electric distribution
system;
(6) interconnection facilities between the customer's and the utility's
equipment shall be accessible at all reasonable times to utility personnel.
Upon notification by the customer of the customer's intent to construct and
install parallel generation, the utility shall provide the customer a written
estimate of all costs that will be incurred by the utility and billed to the
customer to accommodate the interconnection. The customer may be
required to reimburse the utility for any equipment or facilities required as
a result of the installation by the customer of generation in parallel with
the utility's service.;
(7) the customer shall notify the utility prior to the initial energizing
and start-up testing of the customer-owned generator, and the utility shall
have the right to have a representative present at such test customer's
distributed energy system;
(4) the utility may require a special agreement for conditions related
to technical and safety aspects of parallel generation; and
(5)(8) prior to granting permission to operate, the utility may
require:
(A) A witness test of the customer's distributed energy system and
interconnection facilities;
(B) the customer to provide the certificate of inspection of the
customer's distributed energy system completed pursuant to any municipal
ordinance or code requirements or a certification from an electrician or
electrical engineer licensed in this state that the system is installed
according to applicable codes and standards; and
(C) the customer to provide documentation that the customer's
distributed energy system was constructed and installed under the
direction of a person who is certified by the north American board of
certified energy practitioners or a master electrician or electrical
contractor licensed under the provisions of K.S.A. 12-1525 et seq., and
amendments thereto;
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(9) the utility may periodically require a witness test of the customer's
distributed energy system and interconnection facilities throughout the
provision of parallel generation service;
(10) the utility shall have the right and authority to disconnect and
isolate a customer's distributed energy system without notice and at
utility's sole discretion when:
(A) Electric service to a customer's premises is discontinued for any
reason;
(B) adverse electrical effects, such as power quality problems, are
occurring or are believed to be occurring on the utility's system or the
electrical equipment of other utility customers;
(C) hazardous conditions on the utility's system are occurring or are
believed to be occurring as a result of the operation of the distributed
energy system or protective equipment;
(D) the utility identifies uninspected or unapproved equipment or
modifications to the distributed energy system after initial approval;
(E) there is recurring abnormal operation, substandard operation or
inadequate maintenance of the distributed energy system;
(F) the customer fails to remit payment to the utility for any amounts
owed, including, but not limited to, amounts invoiced;
(G) the customer does not comply with the obligations of the
interconnection agreement, except that, if such noncompliance is not an
emergency situation, the utility shall give a customer 90 days to cure the
noncompliance prior to disconnecting and isolating the distributed energy
system; or
(H) such disconnection is necessary due to emergency or
maintenance purposes. In the event that the utility disconnects the
distributed energy system for maintenance, the utility shall make
reasonable efforts to reconnect the distributed generating system as soon
as practicable; and
(11) the customer shall retain the authority to temporarily disconnect
such customer's distributed energy system from the utility's system at any
time. Any such temporary disconnection shall not be construed as a
customer's termination of the interconnection agreement without an
express action to terminate such agreement pursuant to the terms and
conditions of the agreement.
(g) The export capacity of a customer's renewable energy system
shall be appropriately sized for such customer's anticipated electric load
as follows:
(1) (A) Divide the customer's historic consumption in kilowatt-hours
for the previous 12-month period by 8,760 and divide such quotient by a
capacity factor of:
(i) 0.144 when such customer is in the service territory of an
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investor-owned utility; and
(ii) 0.288 when such customer is in the service territory of a
cooperative as defined in K.S.A. 17-4603, and amendments thereto, an
electric utility owned by one or more of such cooperatives, a nonstock
member-owned electric cooperative corporation incorporated in this state
or a municipally owned or operated electric utility; or
(B) if the customer does not have historic consumption data that
adequately reflects the customer's consumption at such premises, the
customer's historic consumption for the previous 12-month period shall be
7.15 kilowatt-hours per square foot of conditioned space; and
(2) round the amount determined pursuant to paragraph (1) up to the
nearest one kilowatt alternating current power increment.
(h) (1) Except as provided in subsection (i), each utility shall, make
parallel generation service available to customers who are in good
standing with the utility, on a first-come, first-served basis, until the
utility's aggregate export capacity from all distributed energy systems,
including systems that are subject to a parallel generation service tariff
established pursuant to this section and systems that are subject to a net
metering tariff that was either voluntarily established by the utility or
pursuant to K.S.A. 66-1263 et seq., and amendments thereto, equals or
exceeds the following:
(A) Commencing on July 1, 2025, 6% of the utility's historic peak
demand;
(B) commencing on July 1, 2026, 7% of the utility's historic peak
demand; and
(C) commencing on July 1, 2027, and each year thereafter, 8% of the
utility's historic peak demand.
(2) The utility may limit the number and size export capacity of
renewable generators additional distributed energy systems to be
connected to the utility's system due to the capacity of the distribution line
to which such renewable generator would distributed energy system will be
connected, and in no case shall the utility be obligated to purchase an
amount greater than 4% of such utility's peak power requirements.
(i) (1) A utility shall not be required to make parallel generation
service available to any customer who has a new or expanded facility that
recieves electric service at a voltage of 34.5 kilovolts or higher and
commences such electric service on or after July 1, 2025.
(2) To determine a utility's historic peak demand for purposes of
subsection (h), a utility's peak demand shall not include the additional
demand of any new or expanded facility of an industrial, commercial or
data center customer that receives electric service at a voltage of 34.5
kilovolts or higher and commences such electric service on or after July 1,
2025.
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(3) The provisions of this subsection shall expire on July 1, 2026.
(j) For any customer with a distributed energy system:
(1) The customer shall own and maintain any necessary export-
limiting device;
(2) protections shall be in place to restrict the export-limiting device
settings to qualified persons;
(3) the utility shall have the option to require a witness test of the
export-limiting device's functions or settings prior to granting permission
to operate and at any time while the distributed energy system is
connected to the utility's system;
(4) the export capacity of the system shall not be increased without
prior approval of the utility;
(5) the customer shall allow the utility to perform periodic witness
tests of the export-limiting device's functions or settings upon request;
(6) if the export-limiting device's functions or settings are incorrect
or if the device fails to limit the export of power below the designed export
capacity for more than 15 minutes in any single event, the customer shall
cease operation of the system until repair or reprogramming of the export-
limiting device is completed. For purposes of this subparagraph, the utility
may require and conduct a witness test prior to authorizing the customer
to resume operation of the system; and
(7) the utility shall not restrict the brand or model of the export-
limiting device if the device is approved by the manufacturer of a listed
distributed energy system or is listed to perform such operations in
conjunction with the customer's system.
(d)(k) (1) (A) For a utility that is subject to the jurisdiction,
regulation, supervision and control of the state corporation commission,
service under any parallel generation service contract entered into under
subsection (a) or (b) shall be subject to either the utility's rules and
regulations on file with the state corporation commission, which shall
include a standard interconnection process and requirements for such
utility's system, or the current federal energy regulatory commission
interconnection procedures and regulations.
(B) For a utility that is not subject to the jurisdiction, regulation,
supervision and control of the state corporation commission, service
under any parallel generation service contract shall be subject to the
current federal energy regulatory commission interconnection procedures
and regulations.
(e)(2) In any case where the owner of the renewable generator
customer and the a utility that is subject to the jurisdiction, regulation,
supervision and control of the state corporation commission cannot agree
to terms and conditions of any contract provided for by this section, the
state corporation commission shall establish the terms and conditions for
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such contract.
(l) A utility shall not impose any additional fees, charges or
requirements for the provision of parallel generation service unless
expressly authorized pursuant to this section. Nothing in this section shall
be construed to:
(1) Prohibit a utility from charging a distributed energy customer for
the use of the utility's system; and
(2) authorize a utility to charge a distributed energy customer for
power exported to the utility by such customer.
(m) (1) Any customer who has received approval from a utility to
construct or operate a distributed energy system pursuant to this section
shall notify the utility within 30 calendar days following the date that the
construction has been canceled or the system is permanently shut down.
Upon receipt of such notice, the utility shall cancel the parallel generation
service contract with such customer.
(2) If a utility has reason to suspect that a customer's distributed
energy system has been abandoned and is no longer producing energy,
such utility may request verification from the customer that the system is
still functioning, or that the customer has a reasonable plan to reenergize
the system. If the customer fails to repair the system or provide a
reasonable plan to complete such repairs within six months, the utility
shall have the option to cancel the parallel generation service contract
with such customer.
(3) Upon cancellation of any parallel generation service contract
pursuant to this subsection, the utility shall not be obligated to refund any
fees previously paid by the customer.
(n) (1) A customer shall have the right to repair or rebuild such
customer's distributed energy system with listed equipment as long as such
repair or rebuilding does not cause an increase in export capacity.
(2) If a customer repairs or replaces a distributed energy system, the
customer shall notify the utility prior to such repair or replacement and
provide proof that the new equipment complies with the same rules,
regulations and approved capacity as the original installation. The utility
shall have the right to require and conduct a witness test prior to
authorizing operation of the system. A customer who repairs or replaces a
system pursuant to this paragraph shall not be required to submit a new
parallel generation service application to the utility.
(3) A customer shall not repair or replace a distributed energy system
in a way that increases the export capacity of the system without providing
prior notification to the utility. The utility may require the customer to
submit a new parallel generation service application to include the new
provisions and requirements relating to such system.
(f)(o) (1) The governing body of any school desiring to proceed under
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this section shall, prior to taking any action permitted by this section, make
a finding that either:
(1)(A) Net energy cost savings will accrue to the school from such
renewable generation over a 20-year period; or
(2)(B) that such renewable generation is a science project being
conducted for educational purposes and that such project may not recoup
the expenses of the project through energy cost savings.
(2) Any school proceeding under this section may contract or enter
into a finance, pledge, loan or lease-purchase agreement with the Kansas
development finance authority as a means of financing the cost of such
renewable generation.
(g)(p) Each kilowatt of nameplate capacity of the parallel generation
of electricity provided for in this section shall count as 1.10 kilowatts
toward the compliance of the affected utility, as defined in K.S.A. 66-
1257, and amendments thereto, and with whom the customer-generator has
contracted, with the renewable energy standards act in K.S.A. 66-1256
through 66-1262, and amendments theretoNothing in this section shall be
construed to require any cooperative as defined in K.S.A. 17-4603, and
amendments thereto, electric utility owned by one or more such
cooperatives, nonstock member-owned electric cooperative corporation
incorporated in this state or municipally owned or operated electric utility
to opt in to or otherwise participate in any demand response or distributed
energy resource aggregation programs.
(h)(q) The provisions of the net metering and easy connection act
shall not preclude the state corporation commission from approving net
metering tariffs upon request of an electric utility for other methods of
renewable generation not prescribed in subsection (b)(1) of K.S.A. 66-
1264(b)(1), and amendments thereto.
Sec. 5. K.S.A. 66-1268 is hereby amended to read as follows: 66-
1268. (a) Net metered facilities must meet all applicable safety,
performance, interconnection and reliability standards established by the
national electrical code, the national electrical safety code, the institute of
electrical and electronics engineers, underwriters laboratories, the federal
energy regulatory commission and any local governing authorities. A
utility may require that a customer-generator's system contain a switch,
circuit breaker, fuse or other easily accessible device or feature located in
immediate proximity to the customer-generator's metering equipment that
would allow a utility worker the ability to manually and instantly
disconnect the unit from the utility's electric distribution system.
(b) A utility may not require a customer-generator whose net
metering facility meets the standards in subsection (a) to comply with
additional safety or performance standards or perform or pay for additional
tests or purchase additional liability insurance. A utility shall not be liable
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directly or indirectly for permitting or continuing to allow an attachment of
a net metered facility or for the acts or omissions of the customer-
generator that cause loss or injury, including death, to any third party.
(c) (1) Any customer-generator who has received approval from a
utility to construct or operate a net metering facility shall notify the utility
within 30 calendar days following the date that the construction has been
canceled or the facility is permanently shut down. Upon receipt of such
notice, the utility shall cancel the interconnection agreement with such
customer.
(2) If a utility has reason to suspect that a customer-generator's
facility has been abandoned and is no longer producing energy, such
utility may request verification from the customer-generator that the
facility is still functioning or that the customer-generator has a reasonable
plan to reenergize the facility. If the customer-generator fails to repair the
facility or provide a reasonable plan to complete such repairs within six
months, the utility shall have the option to cancel the interconnection
agreement with such customer-generator.
(3) Upon cancellation of any interconnection agreement pursuant to
this subsection, the utility shall not be obligated to refund any fees
previously paid by the customer-generator.
(d) (1) A customer-generator shall have the right to repair or rebuild
such customer-generator's net metering facility that is subject to an
interconnection agreement with listed equipment as long as such repair or
rebuilding does not cause an increase in export capacity.
(2) If a customer-generator repairs or replaces a facility, the
customer shall notify the utility prior to such repair or replacement and
provide proof that the new equipment complies with the same rules,
regulations and approved capacity as the original installation. The utility
shall have the right to require and conduct a witness test prior to
authorizing operation of the facility. A customer who repairs or replaces a
facility pursuant to this paragraph shall not be required to submit a new
net metering interconnection application to the utility.
(3) A customer-generator shall not repair or replace a facility system
in a way that increases the export capacity of the system without providing
prior notification to the utility. The utility may require the customer-
generator to submit a new net metering interconnection application to
include the new provisions and requirements relating to such facility.
Sec. 6. K.S.A. 66-1,184 and 66-1268 are hereby repealed.
Sec. 7. This act shall take effect and be in force from and after its
publication in the Kansas register.
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