Kansas House Bill HB2620

Kansas 2023-2024 Regular Session

• Introduced: 1/30/24
• Refer: 1/30/24
• Failed: 4/30/24

Caption

Establishing a rebuttable presumption against retirement of fossil fuel-fired electric generating units, requiring the state corporation commission to report on such retirements and extending the timelines for the commission to make a determination regarding rate-making treatment for generating or transmission facilities.

Impact

As a result of HB2620, the timelines for the KCC to make determinations regarding rate-making for electric-generating and transmission facilities will be extended. The bill requires utilities to provide detailed annual reports on requests for the retirement of electric generating units, including evaluations of the impacts to state energy generation, capacity margins, and potential stranded costs for ratepayers. This level of scrutiny reflects a move toward greater accountability and may deter unnecessary retirements of facilities critical to the state's energy infrastructure.

Summary

House Bill 2620 addresses key aspects of energy policy concerning public utilities in Kansas, explicitly establishing a rebuttable presumption against the retirement of fossil fuel-fired electric generating units. This bill seeks to enhance the oversight of the Kansas Corporation Commission’s (KCC) decisions regarding rate-making treatment for electric generation and transmission facilities. The proposed legislation mandates that the KCC must not approve the retirement of such units unless sufficient evidence is presented to overcome this presumption, effectively placing a higher burden of proof on utility companies to justify any retirement actions.

Contention

The bill has sparked discussions regarding its implications for Kansas's energy landscape, with supporters emphasizing the need for stability in energy generation to prevent disruptions in supply and rising costs for consumers. Critics, however, may view the bill as an obstacle to transitioning towards more renewable and cleaner energy sources, which could potentially hamper efforts to reduce carbon emissions. Additionally, the requirement for utilities to demonstrate economic viability and thorough assessments prior to retirement of fossil fuel units could lead to contentious debates on energy strategies in future legislative sessions.