SESSION OF 2025
SUPPLEMENTAL NOTE ON SUBSTITUTE FOR HOUSE
BILL NO. 2149
As Recommended by House Committee on
Energy, Utilities and Telecommunications
Brief*
Sub. for HB 2149 would establish consumer protections
for distributed energy customers and amend law related to
parallel generation service contracts and net metering,
including removing renewable generator capacity limits,
permitting the use of locational marginal pricing, establishing
a formula for determining the appropriate size for electrical
loads, and establishing the customer’s right to repair, among
other things.
Definitions (New Section 1)
The bill would define the following terms for the new
sections of law:
●“Distributed energy customer” (customer) would
mean a property owner of a single-family dwelling
or multi-family 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 a single-family or multi-family dwelling;
____________________
*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
https://klrd.gov/ ●“Distributed energy retailer” (retailer) would mean
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;
●“Distributed energy system” (system) would mean
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 state law or a net metering tariff
that was voluntarily established by a utility;
○[Note: An example of such system would be a
residential solar panel system that is
interconnected with the electric grid.]
●“Permission to operate” would be defined as it is in
continuing law; and
●“Utility” would mean an electric public utility, as
defined in law; any cooperative, as defined in law;
an electric utility owned by one or more such
cooperatives; a non-stock member-owned electric
cooperative corporation incorporated in Kansas; or
a municipally owned or operated electric utility.
Consumer Protections (New Section 1)
The bill would prohibit any person or entity from
engaging in the business of or act in the capacity of a retailer
within Kansas unless the person or entity is registered with
the Secretary of State, in good standing, and authorized to
conduct business in Kansas.
2- 2149 Retailer Disclosures
The bill would require a retailer, prior to entering into a
contract with a customer for a distributed energy system, to
provide each customer with a separate disclosure document
that:
●Is written in at least 10-point type;
●Is written in the language that the retailer used to
speak to the customer during the sales process or
the language requested by the customer;
●Includes a description of the make and model of
the system’s major components and the expected
useful life of the system;
●Includes a guarantee concerning the quantity of
energy that the system will generate on a
measurable interval and a remedy if the system
does not comply with the guarantee within one
year following the date the system received
permission to operate;
●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 the terms and conditions are
separately acknowledged in writing by the
customer;
●Includes, in bold and highlighted type, the total
aggregate cost to the customer that would be
incurred over the entirety of the contract. The total
aggregate cost would be required to be separately
acknowledged in writing by the customer;
3- 2149 ●Includes a description of the ownership and
transferability of any tax credits, rebates,
incentives, or renewable energy certificates in
connection with the system;
●Includes the name and certification number of the
individual certified by the North American Board of
Certified Energy Practitioners who would oversee
the permitting and installation of the system or the
name and license number of the master electrician
or electrical contractor who would oversee the
permitting and installation of the system;
●Provides a description of the process and all
associated fees for transferring any financing,
warranty, or other agreements relating to the
system to a new owner;
●Includes the name, phone number, email, and
mailing address of the person or entity that the
customer may contact for questions regarding
performance, maintenance, or repair of the system;
●Includes a description of the assumptions used for
any savings estimates that were provided to the
customer and a description of the applicable utility
billing structure that pertains to the system. The
descriptions and assumptions would be required to
include the same provisions as outlined in the
standard form published by the Attorney General;
●Includes a statement that the retailer would provide
the customer proof that, within 30 days of
completion of installation:
○All permits required for the installation of the
system were obtained prior to installation, if
applicable;
○The system was inspected and approved by a
qualified individual pursuant to the
4- 2149 requirements of any local municipal ordinance
or county resolution;
○The necessary interconnection applications
and documentation were submitted to and
approved by the affected utility; and
○The system received permission to operate;
●Includes a statement that any recurring payments
for a system are required to pause and not be due
if the system does not receive permission to
operate within 90 days of the date that the first
recurring payment is due. The recurring payments
could resume at the time that the system receives
permission to operate. Any payments due during
any pause would either be forgiven or added to the
end of the financing term and would not incur any
penalties for non-payment during the term;
●Includes a statement describing any rate
escalation, balloon payment, or potential
reconfiguration of payment structure;
●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 system are
included as part of the original contract price
should the 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;
●Includes a statement describing the expected start
and completion dates for the installation of the
system;
●Includes a statement indicating whether any
warranty or maintenance obligations related to the
system could be transferred by the retailer to a
third party and, if so, a statement that provides:
5- 2149 ○“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 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”;
●Includes a statement indicating whether the retailer
would place a lien, notice, or other filing on or
against real property as a result of the contract;
●Includes a statement, in bold and highlighted type,
indicating whether the retailer will impose any fees
or other costs upon the customer. If any fees or
other costs will be charged to the customer, the
aggregate total of the fees and other costs would
be required to be provided and separately
acknowledged in writing by the customer;
●Includes a statement in capital letters and bold and
highlighted type that states:
○“[name of retailer] is not affiliated with any
utility company or governmental agency and
shall not claim any such affiliation”; and
●Could include any additional information that the
retailer considers appropriate, only if such
additional information is not intended to conceal or
obscure the disclosures required pursuant to this
section.
The bill would require the disclosure statement to be
signed and dated by the customer at least one calendar day
after the date that the contract for the system was executed.
6- 2149 Violations
The bill would require that any person or entity that
violates the disclosure provisions or any 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 part of, or when presenting, the
disclosures be liable for a civil penalty in an amount not to
exceed $10,000 for each violation.
The violator would be liable to the aggrieved person or
customer, or to the State, for repayment of the civil penalty.
The civil penalty would be recoverable in an action brought by
the aggrieved person or customer or the Attorney General,
county attorney, or district attorney. Any civil penalty would be
in addition to any other relief, which could be granted
pursuant to any other remedy available in law or equity.
If a retailer fails to comply with this section, any contract
entered into between the retailer and the customer that
pertains to the system would be deemed null and void.
This section would not apply to a transaction of real
property on which a system is already located.
This section would take effect on July 1, 2025.
Utility Disclosures (New Section 2)
To allow a retailer to provide informed and accurate
information to the customer, the bill would require a utility,
upon the request of any retailer, to disclose all applications,
rules, service standards, forms, or other documents required
for interconnection of a system pursuant to law or a net
metering tariff that was voluntarily established by a utility,
including utility’s historic amount of compensation per
kilowatt-hour for interconnected systems and the current
compensation amount for those systems. The historic amount
of compensation must be provided in a dollar amount and
7- 2149 shown on a monthly or similar billing period basis for not less
than the preceding five years.
This section would take effect on July 1, 2025.
Standard Disclosure Form (New Section 3)
The bill would require the Attorney General to appoint
and convene an advisory group to collectively develop,
approve, and periodically revise a standard form that could be
used by retailers to perform and provide the required
disclosures. The advisory group would consist of the
following:
●The Attorney General or their designee;
●Representatives from interested groups, including
representatives of distributed energy retailers and
utilities;
●One or more members of the general public who
own residential property in Kansas;
●One or more Assistant Attorneys General; and
●Any other members the Attorney General considers
necessary or appropriate.
The bill would require the Attorney General to publish on
their website, on or before July 1, 2025, the most current
version of the standard form that is developed and approved
by the advisory group.
8- 2149 Parallel Generation Service Contracts (Section 4)
Definitions (Subsection (a))
The bill would amend continuing law related to parallel
generation service contracts and incorporate the following
definitions:
●“Avoided cost” would mean the incremental cost to
an electric energy utility that the utility would
generate itself or purchase from another source
and as “avoided cost” is interpreted by the Federal
Energy Regulatory Commission (FERC) from time
to time;
●“Distributed energy system” would mean any
device or assembly of devices and supporting
facilities that are capable of feeding excess electric
power generated by the 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;
●“Export” would mean power that flows from a
customer’s electrical system through such
customer’s billing meter and onto the utility’s
electricity lines. It would include the sum of power
on all phase conductors;
●“Interconnected” would mean 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;
●“Listed” would mean 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;
9- 2149 ●“Locational marginal price” would mean the hourly
average market price of alternating current energy
per kilowatt-hour established by the applicable
locational marginal price pricing code of the
Southwest Power Pool (SPP);
●“Monthly system average cost of energy per
kilowatt hour” would mean 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;
●“Permission to operate” would mean the
operational date of the customer’s system as
determined by the utility;
●“Utility” would mean any electric public utility, as
defined in law; cooperative, as defined in law;
electric utility owned by one or more such
cooperatives; non-stock member-owned electric
cooperative corporation incorporated in Kansas; or
municipally owned or operated electric utility; and
●“Witness test” would mean an authorized
representative of the electric utility who measures
or verifies a specific setting or operational
condition.
Removing Capacity Limits (Subsection (b))
The bill would make technical and conforming
amendments to the law, including clarifying that the customer
must be in good standing with the utility. The bill would
remove language from continuing law regarding
compensation, renewable generator capacity limits from this
section of the law, and certain definitions.
10- 2149 Applications (Subsection (c))
The bill would authorize a utility to require any customer
seeking to construct and install a system to submit an
application prior to any connection of the system with the
utility’s system; notify the utility of the proposed system; and
verify that the system is constructed, installed, and operated
with all applicable standards and codes. Any customer who
submits an application to construct, install, and operate a
system would have the option to remain on a retail rate tariff
that is identical to the same rate class for which the customer
would otherwise qualify as a retail customer who is not
otherwise receiving service under a parallel generation
service tariff or net metering tariff.
The bill would require a utility to provide notice to a
customer that the utility received the customer’s application
within 30 days following receipt of the application. The bill
would require the utility to act upon the application within 90
calendar days of receipt of the application. If one or more
additional studies are required, the utility would not be subject
to such a 90-day deadline but would provide the customer
with an estimated time frame for action on the application as
soon as practicable after any studies are completed. If the
application is denied, the utility would be required to provide
the customer with a list of the reasons for such denial and
corrective actions needed for approval.
The bill would allow a utility to assess upon any
customer requesting to install a system:
●A fair and reasonable non-refundable
interconnection application fee;
●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 SPP’s
study processes; and
11- 2149 ●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.
Compensation and Locational Marginal Pricing (Subsection
(d))
The bill would require every contract for parallel
generation service to include provisions relating to fair and
equitable compensation for energy exported to a utility by the
consumer. The compensation would not be less than 100
percent of the utility’s monthly avoided cost. A utility would be
required to credit the compensation to the customer’s
account and disclose to any customer the formula that the
utility uses to determine the compensation that the utility
provides pursuant to a contract for parallel generation
service.
The bill would provide an exception that a utility could
use the locational marginal price or 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 would compensate
the customer for the energy exported to the utility at least
annually. The compensation could be paid to the customer or
credited to the customer’s account. When determining
compensation, in no case would a utility issue an invoice for
energy exported to the utility by the customer’s system. Upon
the request of any customer who is subject to locational
marginal price compensation, the utility would be required to
disclose the locational marginal price and corresponding
amount of energy exported to the utility by the customer’s
system.
The locational marginal price exception would sunset on
July 1, 2030.
12- 2149 Terms and Conditions for Parallel Generation Service
(Subsection (f))
The bill would require a utility to furnish, own, and
maintain at the utility’s expense all necessary meters and
associated equipment for billing. A utility could install at the
utility’s expense load research meters and equipment to
monitor customer generation and load. The customer would
be required to provide the utility, at no expense to the utility, a
location for these meters and equipment.
The customer would be required to furnish, install,
operate, and maintain in good order and repair, at the
customer’s expense, a listed device that is suitable for the
operation of the customer’s system in parallel with the utility’s
system. The bill would allow the utility to install, own, and
maintain a disconnecting device located near the electric
meter(s) or allow the utility to require that a customer’s
system contain a switch, circuit breaker, fuse, or other device
or feature that could be accessed by the utility at any time
and would provide an authorized utility worker the ability to
manually disconnect the customer’s system from the utility’s
electric distribution system.
Before granting permission to operate a system, the bill
would allow the utility to require:
●A witness test of the customer’s system and
interconnection facilities;
●The customer to provide the certificate of
inspection of the customer’s system completed
pursuant to any municipal ordinance or code
requirements or a certification from an electrician
or electrical engineer licensed in Kansas that the
system is installed according to applicable codes
and standards,
●The customer to provide documentation that the
customer’s system was constructed and installed
13- 2149 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 continuing law.
The utility could require periodic witness testing of the
customer’s system and interconnection facilities throughout
the provision of parallel generation service.
The bill would authorize the utility to have the right
and authority to disconnect and isolate the distributed energy
system without notice and at utility’s sole discretion when:
●Electric service to a customer’s premises is
discontinued for any reason;
●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;
●Hazardous conditions are occurring or are believed
to be occurring on the utility’s system as a result of
the operation of the system or protective
equipment;
●The utility identifies uninspected or unapproved
equipment or modifications to the system after
initial approval;
●There is recurring abnormal operational,
substandard operation, or inadequate maintenance
of the distributed energy system;
●The customer fails to remit payment to the utility for
any amounts owed, including, but not limited to,
amounts invoiced;
●The customer does not comply with the obligations
of the interconnection agreement, except that, if
such non-compliance is not an emergency
14- 2149 situation, the utility shall give the customer 90 days
to cure the non-compliance prior to disconnecting
and isolating the distributed energy system; or
●Disconnection is necessary due to emergency or
maintenance purposes. In the event that the utility
disconnects the system for maintenance, the utility
would make reasonable efforts to reconnect the
system as soon as practicable.
The bill would allow the customer to retain the authority
to temporarily disconnect the customer’s system from the
utility’s system at any time. Any such disconnection would not
be construed as a customer’s termination of the
interconnection agreement absent an express action to
terminate such agreement pursuant to the terms and
conditions of the agreement.
Formula for Appropriately Sized Electrical Load (Subsection
(g))
The bill would determine the export capacity of a
customer’s distributed energy system to be appropriately
sized for each customer’s electric load by:
●Dividing the customer’s historic consumption in
kilowatt-hours for the previous 12-month period by
8,760.
●Then dividing the quotient by a capacity factor of:
○0.144 when the customer is in the service
territory of an investor-owned utility; and
○0.288 when the customer is in the service
territory of a cooperative as defined in law,
electric utility owned by one or more
cooperatives, non-stock member-owned
electric cooperative corporation incorporated
in Kansas, or municipally owned or operated
electric utility.
15- 2149 If the customer does not have historic consumption data
that adequately reflects the customer’s consumption at the
premises, the bill would set the customer’s historic
consumption for the previous 12-month period to be 7.15
kilowatt-hours per square foot of conditioned space and
would round the amount determined by the historic
consumption formulas to the nearest one kilowatt alternating
current power increment.
Aggregate Export Capacity (Subsection (h))
The bill would require, except as provided in the
following “Exclusions” subsection, each utility to 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 and systems that are subject
to a net metering tariff that was either voluntarily established
by the utility or by law, equals or exceeds the following:
●Commencing July 1, 2025, 6 percent of the utility’s
historic peak demand;
●Commencing July 1, 2026, 7 percent of the utility’s
historic peak demand; and
●Commencing July 1, 2027, and each year
thereafter, 8 percent of the utility’s historic peak
demand.
The bill would allow the utility to limit the export capacity
of additional systems to be connected to the utility’s system
due to the capacity of the distribution line to which the system
would be connected.
16- 2149 Exclusions (Subsection (i))
The bill would clarify that a utility would not be required
to make parallel generation service available to any customer
who has a new or expanded facility that receives electric
service at a voltage of 34.5 kilovolts or higher and
commences such electric service on or after July 1, 2025.
In determining a utility’s historic peak demand, a utility’s
peak demand would 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.
This subsection would expire on July 1, 2026.
Export-limiting Devices (Subsection (j))
The bill would require the following provisions regarding
export-limiting devices for any customer with a system:
●The customer would own and maintain any
necessary export-limiting device;
●Protections would be in place to restrict the export-
limiting device settings to qualified persons;
●The utility would have the option to require a
witness test of the export-liming device’s functions
or settings prior to granting permission to operate
and at any time during which the distributed energy
system is connected to the utility’s system;
●The export capacity of the system would not be
increased without prior approval of the utility;
●The customer would allow the utility to perform
periodic witness tests of the export-limiting device’s
functions or settings upon request;
17- 2149 ●If the export-limiting device’s functions or settings
are incorrect or if the device fails to limit the export
of power below the designated 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. The utility could require and
conduct a witness test prior to authorizing
operation of the system; and
●The utility would 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.
Regulation (Subsection (k))
Regarding parallel generation service, for a utility
subject to the jurisdiction, regulation, supervision, and control
(regulation) of the Kansas Corporation Commission (KCC),
the bill would require that service under any parallel
generation service contract would be subject to either the
utility’s rules and regulations on file with the KCC, which
would include a standard interconnection process and
requirements for the utility’s system, or the current Federal
Energy Regulatory Commission (FERC) interconnection
procedures and regulations.
For a utility that is not subject to KCC regulation, the bill
would require that service under any parallel generation
service contract would be subject to the current FERC
interconnection procedures and regulations.
The bill would clarify that, in any case where the
customer and a utility that is subject to KCC regulation cannot
agree to terms and conditions of any contract provided for by
this section, the KCC would be required to establish the terms
and conditions for the contract.
18- 2149 Fees (Subsection (l))
The bill would prohibit a utility from imposing any
additional fees, charges, or requirements for the provision of
parallel generation service unless expressly authorized in this
section.
The bill would also clarify that nothing in this section
could be construed to:
●Prohibit a utility from charging a customer for the
use of the utility’s system; and
●Authorize a utility to charge a customer for power
exported to the utility by a customer.
Canceling Service Contracts (Subsection (m))
The bill would require any customer who has received
utility approval to construct or operate a system to notify the
utility within 30 calendar days following the date when the
construction has been canceled or the system is permanently
shut down. The utility would be required to cancel the parallel
generation service contract with the customer upon receipt of
such notice.
If a utility has reason to suspect that a customer’s
system has been abandoned and is no longer producing
energy, the utility could request verification from the customer
that the system is still functioning, or that the customer has a
reasonable plan to reenergize the system.
If a customer fails to repair the system or provide a
reasonable plan to complete the repairs within six months,
the utility would have the option to cancel the parallel
generation service contract with the customer.
19- 2149 Upon cancellation of any parallel generation service
contract, the utility would not be obligated to refund any fees
previously paid by the customer.
Right to Repair (Subsection (n))
The bill would establish a customer’s right to repair or
rebuild their system with listed equipment as long as the
repair or rebuild does not cause an increase in export
capacity.
If a customer repairs or replaces a system, the customer
would be required to notify the utility prior to the 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 would 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 would not be required to submit a new parallel
generation service application to the utility.
The bill would prohibit a customer from repairing or
replacing a distributed energy system in a way that increases
the export capacity of the system without providing prior
notification to the utility. The utility would be permitted to
require the customer to submit a new parallel generation
service application to include the provisions and requirements
relating to the system.
Demand Response (Subsection (p))
The bill would clarify that nothing in this section could be
construed to require any cooperative, non-stock member-
owned electric cooperative corporation incorporated in
Kansas or a municipally owned or operated electric utility to
opt-in to or otherwise participate in any demand response or
distributed energy resource aggregation programs.
20- 2149 Net Metering and Easy Connection Act (Section 5)
The bill would amend the Net Metering and Easy
Connection Act to include several provisions similar to the
amendments made to the Parallel Generation Service
Contracts law in the bill.
Canceling Interconnection Agreements (Subsection (c))
The bill would require any customer-generator who has
received approval from a utility to construct or operate a net
metering facility to notify the utility within 30 days of when the
construction has been canceled or the facility is permanently
shut down. The utility would be required to cancel the
interconnection agreement with the customer upon receipt of
the notice.
If a utility has reason to suspect that a customer-
generator’s facility has been abandoned and is no longer
producing energy, the utility could 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 the
repairs within six months, the utility would have the option to
cancel the interconnection agreement with the customer-
generator.
Upon cancellation of any interconnection agreement, the
utility would not be obligated to refund any fees previously
paid by the customer-generator.
Right to Repair (Subsection (d))
The bill would establish a customer-generator’s right to
repair or rebuild their net metering facility that is subject to an
interconnection agreement with listed equipment as long as
the repair or rebuild does not cause an increase in export
capacity.
21- 2149 If a customer-generator repairs or replaces a facility, the
customer would be required to notify the utility prior to the
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 would
have the right to require and conduct a witness test prior to
authorizing operation of the facility. A customer who repairs
and replaces a facility would not be required to submit a new
net metering interconnection application to the utility.
The bill would prohibit a customer-generator from
repairing or replacing a facility system in a way that increases
the export capacity of the system without providing prior
notification to the utility. The utility would be permitted to
require the customer-generator to submit a new net metering
interconnection application to include the new provisions and
requirements relating to the facility.
The bill would be in effect upon publication in the
Kansas Register.
Background
The bill was introduced by the House Committee on
Energy, Utilities and Telecommunications at the request of a
representative of the Clean Energy Business Council.
House Committee on Energy, Utilities and
Telecommunications
In the House Committee hearing, proponent testimony
was provided by representatives of the Clean Energy
Business Council and King Solar. The proponents generally
stated that the bill seeks to create consistency in distributed
generation policy, create disclosure requirements for solar
retailers, address technical concerns about the interaction
with the electric grid, and provide guardrails for how an
existing system can be repaired. The proponents emphasized
22- 2149 that the bill as introduced is not their final product and that
they are working with other stakeholders to perfect the
language.
Written-only proponent testimony was provided by
representatives of Artisun Solar, Hutton Energy Service,
Kansans for Lower Electric Rates, and Kansas Industrial
Consumers Group.
Opponent testimony was provided by representatives of
Evergy, Heartland Rural Electric Cooperatives, Kansas
Electric Cooperatives, Kansas Municipal Energy Agency,
Kansas Municipal Utilities, and Midwest Energy. The
opponents generally expressed concern with the language in
the bill as introduced, including the compensation formula
and the absence of device isolation provisions, and discussed
their negotiations to propose various amendments.
Written-only opponent testimony was provided by a
representative of Pioneer Electric Cooperatives, Prairieland
Electric Cooperatives, Southern Pioneer Electric Company,
Sunflower Electric Power Corporation, The Victory Electric
Cooperative Association, Western Cooperative Electric
Association, and Wheatland Electric Cooperative.
Written-only neutral testimony was provided by a
representative of the Kansas Chamber, who requested an
amendment to the definition of “distributed energy systems.”
No other testimony was provided.
The House Committee amended the bill to:
Definitions
●Alter the definition of “distributed energy customer”
to specify that it would mean a property owner of a
single-family dwelling or multi-family dwelling of
two units or fewer;
23- 2149 ●Alter the definition of “distributed energy retailer” to
include any person or entity that finances or installs
a distributed energy system;
●Alter the definition of “distributed energy system” to
specify that it would mean any device(s) 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;
●Remove the definition of “financed distributed
energy system”;
●Alter the definition of “utility” to include electric
utilities owned by one or more cooperatives;
●Remove the term “financed” before references to
“distributed energy system” throughout;
●Remove references to “renewable” energy
throughout;
Consumer Protections
●Require that distributed energy retailers be
registered with the Secretary of State, in good
standing, and authorized to conduct business in
Kansas;
Retailer Disclosure s
●Include a description of the expected useful life of
the distributed energy system;
●Require certain terms and conditions to be
acknowledged in writing by the customer;
24- 2149 ●Clarify that the individual certified by the North
American Board of Certified Energy Practitioners
would oversee the permitting and installation of the
system;
●Require a description of all associated fees for
transferring any financing, warranty, or other
agreements to a new owner;
●Require the description and assumptions used for
savings estimates to include the same provisions
as outlined in the Attorney General’s standard form;
●Clarify that proof of all permits for installation is
required only if applicable;
●Include a statement as to whether the costs to
remove, reinstall, and repair the system are
included as part of the original contract price,
should the system be affected by natural causes or
exterior work on the premises;
●Alter the required language about the potential
transfer of maintenance obligations to require the
third party to be registered with the Secretary of
State, in good standing, and authorized to conduct
business in Kansas;
●Clarify that a statement would indicate whether the
retailer shall place a lien, notice, or other filing on
or against real property;
●Establish a maximum civil penalty of $10,000 for
each violation of disclosure requirements;
●Clarify that the section regarding consumer
protections would not apply to a transaction of real
property on which a system is already located;
●Clarify that the consumer protection provisions
would take effect on July 1, 2025;
25- 2149 Utility Disclosures
●Require a utility to disclose, upon request, all other
documents required for interconnection of a
distributed energy system or a net metering tariff
that was voluntarily established by a utility;
●Remove a provision regarding the disclosure of the
historic amount of compensation on the utility’s
website;
●Clarify that the utility disclosure provisions would
take effect on July 1, 2025;
Standard Disclosure Form
●Insert a provision requiring the Attorney General to
appoint an advisory group charged with developing
a standard disclosure form, which the bill would
require to be published on the Attorney General’s
website on or before July 1, 2025;
Parallel Generation Service Contracts
Definitions
●Insert definitions for “avoided cost” and “distributed
energy system”;
●Remove the definition for “limited export”;
●Replace “underwriters laboratories,” in the
definition of “listed”, with “the institute of electrical
and electronics engineers”;
●Remove a line in the definition of “locational
marginal price” pertaining to $0.01 per kilowatt-
hour of alternating current;
26- 2149 ●Replace references to “renewable” energy systems
with references to “distributed” energy systems;
●Replace the definition of “utility”;
●Clarify that a witness test must be performed by an
authorized representative of the electric utility;
Applications
●Insert provisions outlining application requirements
for customers seeking to construct and install a
distributed energy system with the utility’s system;
●Remove the bill’s interconnection application fee
schedule and replace it with a provision stating
that, for any customer requesting to install a
distributed energy system, a utility may assess:
○A fair and reasonable non -refundable
interconnection application fee;
○Any applicable costs incurred by the utility for
any study conducted on export capacity; and
○Costs associated with any related system
upgrade costs, devices, and equipment
required to be furnished by the utility in order
to accept the requested export capacity;
Compensation and Locational Marginal Pricing
●Change the calculation of compensation for
exported energy to be not less than 100 percent of
the utility’s monthly avoided cost;
●Replace the provision related to locational marginal
pricing, removing references to Midwest Energy,
and move the sunset from 2035 to 2030;
Terms and Conditions for Parallel Generation Service
27- 2149 ●Clarify that the utility would furnish, own, and
maintain all necessary meters and equipment at
the utility’s expense;
●Restore a provision allowing the utility to limit the
energy production from the generating facility to an
amount no greater than the load at the customer’s
facility;
●Clarify that the customer would be required to
furnish, install, operate, and maintain a listed
device at the customer’s expense;
●Add that the utility would be permitted to require
that a customer’s system contain a switch, circuit
breaker, fuse, or other device or feature that may
be accessed by the utility to manually disconnect
the system;
●Remove a provision permitting the utility to require
a customer to reimburse the utility for any devices
or equipment required to be furnished;
●Add a provision requiring documentation that the
customer’s system was constructed and installed
under the direction of a person who is certified by
the North American Board of Certified Energy
Practitioners, a master electrician, or licensed
electrical contractor;
●Insert a provision granting the utility the right and
authority to disconnect and isolate the distributed
energy system without notice and at a utility’s sole
discretion under certain circumstances;
●Insert a provision stating the customer would retain
the authority to temporarily disconnect the
customer’s system at any time. The disconnection
would not be construed as a termination of
agreement without express action;
28- 2149 ●Remove a paragraph regarding special
agreements for technical and safety conditions;
Formula for Appropriate ly Size d Electrical Load
●Change the formula for determining the appropriate
size for distributed energy systems to differentiate
capacity factors by types of utilities;
●Replace certain provisions regarding rounding to
the nearest standard size with rounding to the
nearest one kilowatt alternating current power
increment;
Aggregate Export Capacity
●Require each utility to 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 equals or
exceeds the following:
○Commencing July 1, 2025, 6 percent of the
utility’s historic peak demand;
○Commencing July 1, 2026, 7 percent of the
utility’s historic peak demand; and
○Commencing July 1, 2027, and each year
thereafter, 8 percent of the utility’s historic
peak demand;
Exclusions
●Provide an exception to the aggregate export
capacity requirement by not requiring a utility to
make parallel generation service available to any
customer who has a new or expanded facility that
receives electric service at a voltage of 34.5
kilovolts or higher and commences such electric
service on or after July 1, 2025;
29- 2149 ●Determine a utility’s historic peak demand for
purposes of the aggregate export capacity; 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;
●Set a sunset date of July 1, 2026, for the
exclusions provisions;
Export- l imiting Devices
●Authorize a utility to require a witness test of the
export-limiting device’s functions or settings prior to
granting permission to operate and at any time
during which the distributed energy system is
connected to the utility’s system;
●Allow a utility to require and conduct a witness test
prior to authorizing operation of the system after a
repair or reprogramming of the export-limiting
device is completed;
Regulation
●Specify that parallel generation service contracts
shall be subject to utilities under the jurisdiction,
regulation, and supervision, and control of the KCC
shall be subject to the utility’s interconnection
procedures and rules and regulations on file with
the KCC;
●Specify for those utilities not subject to KCC
regulation, that service for any parallel generation
service contracts shall be subject to current FERC
interconnection procedures and regulations;
30- 2149 ●Clarify a provision regarding when a customer and
utility cannot agree on contract terms and
conditions to specify a “utility” is one that is
regulated by the KCC.
Fees
●Clarify that nothing the section would be construed
to:
○Prohibit a utility from charging a distributed
energy customer for the use of the utility’s
system; and
○Authorize a utility to charge a distributed
energy customer for power exported to the
utility by a customer.
Canceling Service Contracts
●Reduce the time period from 24 months to 6
months for a customer to repair a system or
provide a reasonable plan to complete repairs to a
system before a utility has the option to cancel the
parallel generation service contract with such
customer;
Right to Repair
●Specify that when a customer receives approval
from a utility to construct or operate a distributed
energy system, that customer shall notify the utility
within 30 calendar days following the date when
construction has been canceled or permanently
shut down;
●Provide the right to repair listed equipment to the
customer so long as the listed equipment does not
increase the system’s export capacity:
○After a customer does conduct the right to
repair their system, the utility will have the
31- 2149 right to require and conduct a witness test
prior to authorizing operation of the system;
and
○Before a customer exercises the right to
repair their system, they shall be required to
notify the utility if the repairs would increase
the export capacity of the system;
Demand Response
●Specify that nothing in the section shall be
construed to require any cooperative as defined in
continuing law, non-stock member-owned electric
cooperative corporation incorporated in Kansas or
municipally owned or operated electric utility to opt-
in to or otherwise participate in any demand
response or distributed energy resource
aggregation programs;
Net Metering and Easy Connection Act
●Update the net metering statute to require any
customer-generator who has received approval
from a utility to construct or operate a net metering
facility to notify the utility within 30 days when the
construction has been canceled or permanently
shut down;
●Provide the right to repair listed equipment for a
customer-generator of a net metering system so
long as the listed equipment does not increase the
system’s export capacity:
○After a customer does exercise the right to
repair their system, the utility will have the
right to require and conduct a witness test
prior to authorizing operation of the system;
and
○Before a customer exercises the right to
repair their system, the bill would require the
32- 2149 customer to notify the utility if the repairs
would increase the export capacity of the
system;
●Make technical and conforming changes; and
●Change the effective date to upon publication in the
Kansas Register.
The House Committee recommended a substitute bill be
passed incorporating the amendments.
Fiscal Information
According to the fiscal note prepared by the Division of
the Budget on the bill, as introduced, the Citizen’s Utility
Ratepayer Board (CURB) indicates that enactment of the bill
would not have an immediate fiscal effect on operations but
would potentially create dockets on new tariffs in the future
that would require intervention by the Board. CURB
anticipates that it would be able to handle the additional
workload within existing resources. The KCC indicates that
enactment of the bill would not have a fiscal effect on
operations. Any fiscal effect associated with enactment of the
bill is not reflected in The FY 2026 Governor’s Budget Report.
The League of Kansas Municipalities indicates that
enactment of the bill could increase operating expenditures or
decrease revenues to cities; however, a fiscal effect cannot
be estimated. The Kansas Association of Counties indicates
that enactment of the bill would have a fiscal effect for any
county that qualifies as an energy retailer; however, a fiscal
effect cannot be estimated.
Energy; utilities; distributed energy systems; distributed generation; consumer
protections; parallel generation; solar power
33- 2149