Session Law

Identifying Information:L. 2001 ch. 196
Other Identifying Information:2001 House Bill 2245
Tax Type:Corporate Income Tax
Brief Description:An Act concerning electric generation; relating to certain parallel generation services; pro- viding for issuance of bonds for certain purposes; amending K.S.A. 66-1,184 and re- pealing the existing section.
Keywords:


Body:


CHAPTER 196

HOUSE BILL No. 2245


An Act concerning electric generation; relating to certain parallel generation services; pro-

viding for issuance of bonds for certain purposes; amending K.S.A. 66-1,184 and repealing the existing section.




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

Section 1. K.S.A. 66-1,184 is hereby amended to read as follows: 66-

1,184. (a) Except as provided in subsection (b), every public 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, upon request of such customer, whereby 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 gen-

erated by such customer's energy producing system into the utility's sys-

tem. No such apparatus or device shall either cause damage to the public

utility's system or equipment or present an undue hazard to utility per-

sonnel. 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, and.

(b) (1) For purposes of this subsection, ``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.

(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 kil-

owatts or less, or is a commercial customer of the utility and owns a

renewable generator with a capacity of 100 kilowatts or less. Such cus-

tomer 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. Every such contract shall include, but need not be limited to,

provisions relating to fair and equitable compensation for energy supplied

to the utility by such customer. Such compensation shall be not less than

150% of the utility's monthly system average cost of energy per kilowatt

hour. A utility may 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.

(c) The following terms and conditions shall apply to contracts en-

tered into under subsection (a) or (b): (a)

(1) The utility will supply, own, and maintain all necessary meters

and associated equipment utilized for billing. In addition, and for the

purposes of monitoring customer generation and load, the utility may

install at its expense, load research metering. The customer shall supply,

at no expense to the utility, a suitable location for meters and associated

equipment used for billing and for load research; (b)

(2) for the purposes of insuring 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 produc-

tion 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; (c)

(3) 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 suitable

for the operation of the generator 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, the

utility may install, own, and maintain a disconnecting device located near

the electric meter or meters. Interconnection facilities between the cus-

tomer's and the utility's equipment shall be accessible at all reasonable

times to utility personnel. The customer may be required to reimburse

the utility for any equipment or facilities required as a result of the in-

stallation by the customer of generation in parallel with the utility's serv-

ice. 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; and (d)

(4) the utility may require a special agreement for conditions related

to technical and safety aspects of parallel generation.

(d) Service under any such contract entered into under subsection (a)

or (b) shall be subject to the utility's rules and regulations on file with the

state corporation commission.

New Sec. 2. (a) For the purpose of financing the construction, ren-

ovation or repair of one or more facilities which generate electricity solely

by use of hydropower and which each have a capacity of more than two

but less than 25 megawatts, the Kansas development finance authority is

hereby authorized to issue revenue bonds in amounts sufficient to pay

the costs of such construction, renovation or repair, including any re-

quired interest on the bonds during construction, renovation or repair,

plus all amounts required for costs of the bond issuance and for any

required reserves on the bonds. The bonds, and interest thereon, issued

pursuant to this section shall be payable from revenues derived from sales

of electricity generated by the generation facility or facilities.

(b) The provisions of subsection (a) of K.S.A. 74-8905, and amend-

ments thereto, shall not prohibit the issuance of bonds by the Kansas

development finance authority for the purposes of this section and any

such issuance of bonds is exempt from the provisions of subsection (a) of

K.S.A. 74-8905 and amendments thereto, which would operate to pre-

clude such issuance.

(c) Revenue bonds, including refunding revenue bonds, issued here-

under shall not constitute an indebtedness of the state of Kansas, nor

shall they constitute indebtedness within the meaning of any constitu-

tional or statutory provision limiting the incurring of indebtedness.

(d) Revenue bonds, including refunding revenue bonds, issued here-

under and the income derived therefrom are and shall be exempt from

all state, county and municipal taxation in the state of Kansas, except

Kansas estate taxes.

Sec. 3. K.S.A. 66-1,184 is hereby repealed.

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

publication in the statute book.

Approved May 22, 2000.


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Date Composed: 09/25/2001 Date Modified: 09/25/2001