Session Law

Identifying Information:L. 2003 ch. 148
Other Identifying Information:2003 House Substitute for Senate Bill 263*
Tax Type:Other
Brief Description:An Act relating to public utilities; concerning prior determination of rate-making principles and treatment by the corporation commission; repealing section 1 of 2003 Substitute for Senate Bill No. 104.
Keywords:


Body:

CHAPTER 148

HOUSE Substitute for SENATE BILL No. 263*

(Amends Chapter 113)


An Act relating to public utilities; concerning prior determination of rate-making principles

and treatment by the corporation commission; repealing section 1 of 2003 Substitute


for Senate Bill No. 104.


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

Section 1. (a) As used in this section:

(1) ``Commission'' means the state corporation commission;

(2) ``contract'' means a public utility's contract for the purchase of

electric power in the amount of at least $5,000,000 annually;

(3) ``generating facility'' means any electric generating plant or im-

provement to existing generation facilities;

(4) ``stake'' means a public utility's whole or fractional ownership

share or leasehold or other proprietary interest in a generating facility or

transmission facility;

(5) ``public utility'' has the meaning provided by K.S.A. 66-104, and

amendments thereto; and

(6) ``transmission facility'' means: (A) Any existing line, and support-

ing structures and equipment, being upgraded for the transfer of elec-

tricity with an operating voltage of 69 kilovolts or more of electricity; or

(B) any new line, and supporting structures and equipment, being con-

structed for the transfer of electricity with an operating voltage of 230

kilovolts or more of electricity.

(b) (1) Prior to undertaking the construction of, or participation in,

a transmission facility, a public utility may file with the commission a

petition for a determination of the rate-making principles and treatment,

as proposed by the public utility, that will apply to the recovery in whole-

sale or retail rates of the cost to be incurred by the public utility to acquire

such public utility's stake in the transmission facility during the expected

useful life of the transmission facility.

(2) The commission shall issue an order setting forth the rate-making

principles and treatment that will be applicable to the public utility's stake

in the transmission facility in all rate-making proceedings on and after

such time as the transmission facility is placed in service or the term of

the contract commences.

(3) The commission in all proceedings in which the cost of the public

utility's stake in the transmission facility is considered shall utilize the

rate-making principles and treatment applicable to the transmission fa-

cility.

(4) If the commission fails to issue a determination within 180 days

of the date a petition for a determination of rate-making principles and

treatment is filed, the rate-making principles and treatment proposed by

the petitioning public utility will be deemed to have been approved by

the commission and shall be binding for rate-making purposes during the

useful life of the transmission facility.

(5) If the commission does not have jurisdiction to set wholesale rates

for use of the transmission facility the commission need not consider rate-

making principles and treatment for wholesale rates for the transmission

facility.

(c) (1) Prior to undertaking the construction of, or participation in,

a generating facility or prior to entering into a new contract, a public

utility may file with the commission a petition for a determination of the

rate-making principles and treatment, as proposed by the public utility,

that will apply to recovery in wholesale or retail rates of the cost to be

incurred by the public utility to acquire such public utility's stake in the

generating facility during the expected useful life of the generating facility

or the recovery in rates of the contract during the term thereof.

(2) Any utility seeking a determination of rate-making principles and

treatment under subsection (c)(1) shall as a part of its filing submit the

following information: (A) A description of the public utility's conserva-

tion measures; (B) a description of the public utility's demand side man-

agement efforts; (C) the public utility's ten-year generation and load fore-

casts; and (D) a description of all power supply alternatives considered

to meet the public utility's load requirements.

(3) In considering the public utility's supply plan, the commission

may consider if the public utility issued a request for proposal from a

wide audience of participants willing and able to meet the needs identi-

fied under the public utility's generating supply plan, and if the plan

selected by the public utility is reasonable, reliable and efficient.

(4) The commission shall issue an order setting forth the rate-making

principles and treatment that will be applicable to the public utility's stake

in the generating facility or to the contract in all rate-making proceedings

on and after such time as the generating facility is placed in service or

the term of the contract commences.

(5) The commission in all proceedings in which the cost of the public

utility's stake in the generating facility or the cost of the purchased power

under the contract is considered shall utilize the rate-making principles

and treatment applicable to the generating facility or contract.

(6) If the commission fails to issue a determination within 180 days

of the date a petition for a determination of rate-making principles and

treatment is filed, the rate-making principles and treatment proposed by

the petitioning public utility will be deemed to have been approved by

the commission and shall be binding for rate-making purposes during the

useful life of the generating facility or during the term of the contract.

(d) The public utility shall have one year from the effective date of

the determination of the commission to notify the commission whether

it will construct or participate in the construction of the generating or

transmission facility or whether it will perform under terms of the con-

tract.

(e) If the public utility notifies the commission within the one-year

period that the public utility will not construct or participate in the con-

struction of the generating or transmission facility or that it will not per-

form under the terms of the contract, then the determination of rate-

making principles pursuant to subsection (b) or (c) shall be of no further

force or effect, shall have no precedential value in any subsequent pro-

ceeding, and there shall be no adverse presumption applied in any future

proceeding as a result of such notification.

(f) If the public utility notifies the commission under subsection (d)

that it will construct or participate in a generating facility or purchase

power contract and subsequently does not, it will be required to notify

the commission immediately and file an alternative supply plan with the

commission per subsection (c) within 90 days.

Sec. 2. Section 1 of 2003 Substitute for Senate Bill No. 104 is hereby

repealed.

Sec. 3. This act shall take effect and be in force from and after its

publication in the statute book.

Approved May 19, 2002.


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