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
The implications of SB 456 may have profound effects on state energy policy, particularly concerning fossil fuel facilities. By instituting a default position that favors the continued operation of these facilities, the bill seeks to mitigate potential disruptions in energy supply as the state transitions toward more renewable energy sources. Critics may argue that this could hinder advancements in cleaner energy alternatives. Furthermore, the annual reporting requirement will increase transparency regarding the performance and decisions surrounding the retirement of such units, showcasing trends in energy infrastructure management.
Summary
Senate Bill 456 establishes a rebuttable presumption against the retirement of fossil fuel-fired electric generating units in Kansas. The bill mandates that the state corporation commission must require sufficient evidence from utilities if they wish to retire such units. This includes demonstrating that any proposed retirement does not adversely impact ratepayers, the utility's rate competitiveness, or the overall reliability of the electric grid. The bill is envisioned to help maintain reliable energy supply while balancing economic and environmental considerations.
Contention
One notable aspect of the bill is the contention surrounding the testimonies and evidence that utilities must present to counter the presumption against retirement. Proponents argue that this is essential for ensuring that economic motivations do not undermine environmental goals. However, opponents of the bill may see it as an undue burden on utilities, potentially complicating their ability to adapt to market demands and environmental standards. Overall, the bill portrays the ongoing debate over balancing traditional energy sources with the growing necessity for sustainable energy practices.
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.
Extending the timelines for the state corporation commission to make a determination regarding rate-making treatment for electric generating or transmission facilities.
Authorizing electric public utilities to recover certain depreciation and construction work in progress expenses and limiting the time that such recovery may be implemented, authorizing the provision of economic development electric rates for certain large electric customers and limiting the time that such rates may be implemented, extending the timeline for the state corporation commission to issue an order in ratemaking treatment proceedings, authorizing electric public utilities to retain certain generating facilities in the utilty's rate base, prohibiting the commission from authorizing the retirement of certain generating facilities unless certain requirements are met, increasing the capacity limitation for the total amount of net metering facilities that may operate in the service territory of an investor-owned electric public utility, requiring net metering facilities to be appropriately sized based on the customer's average load and establishing requirements for exporting power from a net metering system to a utility.
Providing a property tax exemption for certain new electric generation facilities and sunsetting current property tax exemptions for such facilities removing certain requirements relating to the state corporation commission's determinations of cost recovery and prudent investments.
Extending the timelines for the state corporation commission to make a determination regarding rate-making treatment for electric generating or transmission facilities.
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.
Authorizing electric public utilities to recover certain depreciation and construction work in progress expenses and limiting the time that such recovery may be implemented, authorizing the provision of economic development electric rates for certain large electric customers and limiting the time that such rates may be implemented, extending the timeline for the state corporation commission to issue an order in ratemaking treatment proceedings, authorizing electric public utilities to retain certain generating facilities in the utilty's rate base, prohibiting the commission from authorizing the retirement of certain generating facilities unless certain requirements are met, increasing the capacity limitation for the total amount of net metering facilities that may operate in the service territory of an investor-owned electric public utility, requiring net metering facilities to be appropriately sized based on the customer's average load and establishing requirements for exporting power from a net metering system to a utility.