Authorizing the state corporation commission to increase or decrease an electric public utility's return on equity based on whether such utility's all-in average retail rate has increased or decreased.

Session of 2025
HOUSE BILL No. 2032
By Committee on Energy, Utilities and Telecommunications
Requested by Paul Snider on behalf of Kansans for Lower Electric Rates
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AN ACT concerning electric public utilities; relating to the state
corporation commission; authorizing the commission to increase or
decrease an electric public utility's return on equity based on whether
such utility's all-in average retail rate has increased or decreased;
requiring the commission to amend rates based on such changes;
defining all-in average retail rate.
Be it enacted by the Legislature of the State of Kansas:
Section 1. (a) Upon a showing by an electric public utility before the
state corporation commission at a public hearing and a finding by the
commission that such utility's all-in average retail rate has not increased
more than 1% in the preceding calendar year, the commission may order
an increase to such utility's return on equity in an amount up to 0.5%
above the return on equity authorized in such utility's most recent general
rate proceeding. Such increase shall be valid for the 12-months following
the issuance of such order.
(b) In a proceeding conducted pursuant to a complaint or the
commission's own motion, if the state corporation commission finds an
electric public utility's all-in average retail rate has increased more than
1% in the preceding calendar year, the commission may order a decrease
to such utility's return on equity in an amount up to 0.5% below the return
on equity authorized in such utility's most recent general rate proceeding.
Such decrease shall be valid for the 12-months following the issuance of
such order.
(c) The state corporation commission shall amend an electric public
utility's retail rates to include changes ordered pursuant to this section.
(d) As used in this section, "all-in average retail rate" means the total
cost of electricity a retail customer pays per kilowatt-hour and includes all
charges, fees, taxes, surcharges and customer charges.
Sec. 2. This act shall take effect and be in force from and after its
publication in the statute book.
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