Session Law

Identifying Information:L. 2003 ch. 132
Other Identifying Information:2003 House Bill 2374*
Tax Type:Other
Brief Description:An Act concerning public utilities;relating to procedures to recover certain security costs.



HOUSE BILL No. 2374*

An Act concerning public utilities;

relating to procedures to recover certain security costs.

Be it enacted by the Legislature of the State of Kansas:

Section 1. This act may be cited as the Kansas energy security act.

Sec. 2. The legislature finds that:

(a) Actual and threatened acts of terrorism directed at the American

people make it clear that government must take enhanced measures to

protect its citizens and provide for greater security of services essential

to the public welfare.

(b) The threat of terrorism extends to utilities that provide basic serv-

ices upon which individual citizens, schools, hospitals, nursing homes, day

care centers, businesses and industry rely.

(c) Under these extraordinary circumstances, practices and proce-

dures that would otherwise apply in regulatory proceedings shall not ham-

per the government in performing its most basic purposes: Providing for

the security of its citizens and protecting the public welfare.

Sec. 3. (a) In adopting procedures applicable in proceedings pursu-

ant to K.S.A. 66-1233, and amendments thereto, the state corporation

commission shall provide for:

(1) Confidentiality of information so that the amount of recovery re-

quested, the amount of recovery allowed, the method of cost recovery

requested and the method of cost recovery allowed is not disclosed;

(2) protective orders for all filings so that the citizens' utility ratepayer

board may receive and review documents if the board intervenes;

(3) procedures to reflect rules of the United States nuclear regulatory

commission or other regulatory bodies that govern the release of infor-

mation and documentation which an applicant is required to submit to

support the application or supply to the commission, commission staff or


(4) the security cost recovery charge to be unidentifiable on custom-

ers' bills;

(5) the security cost recovery charge shall be allocated and added to

all wholesale and retail rates and future contracts. Any contract existing

on the effective date of this act, which does not specifically prohibit the

addition of such charges, shall have such charges added;

(6) review of security-related filings in an expedited manner with ref-

erence only to security-related items to assure that the proposed items

provide enhanced security;

(7) denial of any expenditure that the commission determines is not

prudent or is not for security measures and approval of all other expend-

itures; and

(8) recovery of capital expenditures over a period equal to not more

than 1/2 the usable lifetime of the capital investment.

(b) A determination by the commission of the prudence of an ex-

penditure for security measures shall not be based on standard regulatory

principles and methods of recovery and shall take fully into account the

findings and intent of the legislature as stated in section 2, and amend-

ments thereto.

(c) The provisions of this act and K.S.A. 66-1233, and amendments

thereto, shall apply recovery of prudent expenditures for enhanced se-

curity incurred after September 11, 2001.

Sec. 4. This act shall take effect and be in force from and after its

publication in the Kansas register.

Approved April 21, 2002.

Published in the Kansas Register May 1, 2002.


Date Composed: 10/29/2003 Date Modified: 10/29/2003