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Substitute for HOUSE BILL No. 2149
AN A CT concerning distributed energy resources; requiring distributed energy system
retailers to disclose certain information to customers who will construct, install and
operate a distributed energy system; requiring the attorney general to convene an
advisory group to establish a standard form for such disclosures and requiring
publication thereof; requiring electric public utilities to disclose certain information
to distributed energy retailers; providing criteria to determine appropriate system size
for a customer's distributed energy system that is subject to parallel generation;
establishing requirements for interconnection and operation of a distributed energy
system; increasing the total capacity limitation for an electric public utility's
provision of parallel generation service; establishing powers and limitations relating
thereto; establishing notification requirements for when a system is no longer
producing energy or the customer seeks to repair or rebuild a distributed energy
system; amending K.S.A. 66-1,184 and 66-1268 and repealing the existing sections.
Be it enacted by the Legislature of the State of Kansas:
New Section 1. (a) As used in sections 1 through 3, and
amendments thereto:
(1) "Distributed energy customer" means a property owner of a
single-family dwelling or multifamily dwelling of two units or fewer
and who is offered a contract from a distributed energy retailer for the
construction, installation or operation of a distributed energy system
that is primarily intended to offset the energy consumption of such
single family or multifamily dwelling.
(2) "Distributed energy retailer" means any person or entity that
sells, markets, solicits, advertises, finances, installs or otherwise makes
available for purchase a distributed energy system in the state of
Kansas.
(3) "Distributed energy system" means any device or assembly of
devices and supporting facilities that is capable of feeding excess
electrical power generated by a customer's energy producing system
into the utility's system, such that all energy output and all other
services will be fully consumed by the distributed energy customer or
the utility, and that is or will be subject to an agreement under K.S.A.
66-1,184, 66-1263 et seq., and amendments thereto, or a net metering
tariff that was voluntarily established by a utility.
(4) "Permission to operate" means the same as defined in K.S.A.
66-1,184, and amendments thereto.
(5) "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, an electric utility owned by
one or more such cooperatives, a nonstock member-owned electric
cooperative corporation incorporated in this state or a municipally
owned or operated electric utility.
(b) No person or entity required to be registered with the secretary
of state pursuant to the business entity standard treatment act, K.S.A.
17-1901 et seq., and amendments thereto, shall engage in the business
or act in the capacity of a distributed energy retailer within this state
unless such person or entity is registered with the secretary of state, in
good standing and authorized to conduct business in the state.
(c) Prior to entering into a contract with a distributed energy
customer for a distributed energy system, a distributed energy retailer
shall provide such customer a separate disclosure document that:
(1) Is written in at least 10-point font;
(2) is written in the language that the distributed energy retailer
used to speak to the distributed energy customer during the sales
process or the language requested by such customer;
(3) includes a description of the make and model of the distributed
energy system's major components and the expected useful life of the
distributed energy system;
(4) includes a guarantee concerning the quantity of energy that the
distributed energy system will generate on a measurable interval and a
remedy if such system does not comply with such guarantee within one
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year following the date the system received permission to operate;
(5) does not contain blank spaces that may be subsequently filled
in with terms or conditions that materially affect the timing, value or
obligation of the contract unless such terms and conditions are
separately acknowledged in writing by the distributed energy customer;
(6) includes, in bold font and highlighted type, the total aggregate
cost to the distributed energy customer that will be incurred over the
entirety of the contract. Such total aggregate cost shall be separately
acknowledged in writing by the distributed energy customer;
(7) includes a description of the ownership and transferability of
any tax credits, rebates, incentives or renewable energy certificates in
connection with the distributed energy system;
(8) includes the name and certification number of the individual
certified by the north American board of certified energy practitioners
who will oversee the permitting and installation of the distributed
energy system or the name and license number of the master electrician
or electrical contractor who will oversee the permitting and installation
of the distributed energy system;
(9) provides a description of the process and all associated fees for
transferring any financing, warranty or other agreements relating to the
distributed energy system to a new owner;
(10) includes the name, phone number, email and mailing address
of the person or entity that the distributed energy customer may contact
for questions regarding performance, maintenance or repair of the
distributed energy system;
(11) includes a description of the assumptions used for any
savings estimates that were provided to the distributed energy customer
and provides a description of the applicable utility billing structure that
pertains to the distributed energy system. Such descriptions and
assumptions shall include the same provisions as outlined in the
standard form published by the attorney general pursuant to section 3,
and amendments thereto;
(12) includes a statement that the distributed energy retailer shall
provide the distributed energy customer proof that, within 30 days of
completion of installation:
(A) All permits required for the installation of the distributed
energy system were obtained prior to installation, if applicable;
(B) the distributed energy system was inspected and approved by
a qualified individual pursuant to the requirements of any local
municipal ordinance or county resolution;
(C) the necessary interconnection applications and documentation
were submitted to and approved by the affected utility; and
(D) the distributed energy system received permission to operate;
(13) includes a statement that any recurring payments for a
distributed energy system shall pause and not be due if such system
does not receive permission to operate within 90 days of the date that
the first recurring payment is due. Such recurring payments may
resume at the time that such system receives permission to operate. Any
payments due during any such pause shall either be forgiven or added
to the end of the financing term and shall not incur any penalties for
nonpayment during such term;
(14) includes a statement describing any rate escalation, balloon
payment or potential reconfiguration of payment structure;
(15) includes a statement as to whether operations or maintenance
services are included as part of the original contract price and whether
the costs to remove, reinstall and repair the distributed energy system
are included as part of the original contract price should the distributed
energy system need to be removed, reinstalled or repaired due to
natural causes or due to any exterior repair, replacement, construction
or reconstruction work on the premises;
(16) includes a statement describing the expected start and
completion dates for the installation of the distributed energy system;
(17) includes a statement indicating whether any warranty or
maintenance obligations related to the distributed energy system may
Substitute for HOUSE BILL No. 2149—page 3
be transferred by the distributed energy retailer to a third party and, if
so, a statement that provides: "The maintenance and repair obligations
under your contract may be assigned or transferred without your
consent to a third party who , if required pursuant to state law, shall be
registered with the secretary of state, in good standing and authorized
to conduct business in the state and bound to all the terms of the
contract. If a transfer occurs, you will be notified in writing of any
change to the name, mailing address, email or phone number to use for
questions and payments or to request system maintenance or repair";
(18) includes a statement indicating whether the distributed energy
retailer shall place a lien, notice or other filing on or against real
property as a result of the contract;
(19) includes a statement, in bold font and highlighted type,
indicating whether the distributed energy retailer will impose any fees
or other costs upon the distributed energy customer. If any such fees or
other costs will be charged to the distributed energy customer, the
aggregate total of such fees and other costs shall be provided and
separately acknowledged in writing by the distributed energy customer;
(20) includes a statement in capital letters and bold font and
highlighted type that states: "[name of distributed energy retailer] is not
affiliated with any utility company or governmental agency and shall
not claim any such affiliation"; and
(21) may include any additional information that the distributed
energy retailer considers appropriate, only if such additional
information is not intended to conceal or obscure the disclosures
required pursuant to this section.
(d) The disclosure statement required pursuant to this section shall
be signed and dated by the distributed energy customer at least one
calendar day after the date that the contract for the distributed energy
system was executed.
(e) (1) Any person or entity that violates the provisions of
subsection (b) or any distributed energy retailer that fails to provide and
perform the disclosures in the form and manner required pursuant to
this section or that makes a materially misleading statement as a part of
or when presenting such disclosures shall be liable for a civil penalty in
an amount not to exceed $10,000 for each such violation. Such violator
shall be liable to the aggrieved person or distributed energy customer,
or to the state, for the payment of such civil penalty. Such civil penalty
shall be recoverable in an action brought by the aggrieved person or
customer or the attorney general, county attorney or district attorney.
Any such civil penalty shall be in addition to any other relief that may
be granted pursuant to any other remedy available in law or equity.
(2) If a distributed energy retailer fails to comply with this section,
any contract entered into between the distributed energy retailer and the
distributed energy customer that pertains to the distributed energy
system shall be deemed null and void.
(f) This section shall not apply to a transaction of real property on
which a distributed energy system is already located.
(g) The provisions of this section shall take effect and be in force
from and after July 1, 2025.
New Sec. 2. (a) To allow a distributed energy retailer to provide
informed and accurate information to a distributed energy customer
pursuant to section 1, and amendments thereto, upon request of any
distributed energy retailer, a utility shall disclose all applications, rules,
service standards, forms or other documents required for
interconnection of a distributed energy system pursuant to K.S.A. 66-
1,184 or 66-1263 et seq., and amendments thereto, or a net metering
tariff that was voluntarily established by a utility, including the utility's
historic amount of compensation per kilowatt hour for interconnected
systems and the current compensation amount for such systems. Such
historic amount of compensation shall be provided in a dollar amount
and shown on a monthly or similar billing period basis for not less than
the preceding five years.
(b) The provisions of this section shall take effect and be in force
Substitute for HOUSE BILL No. 2149—page 4
from and after July 1, 2025.
New Sec. 3. (a) The attorney general shall appoint and convene an
advisory group to collectively develop, approve and periodically revise
a standard form that may be used by distributed energy retailers to
perform and provide the the disclosures required pursuant to section 1,
and amendments thereto. Such advisory group shall consist of the
attorney general or the attorney general's designee, representatives from
interested groups, including representatives of distributed energy
retailers and utilities, one or more members of the general public who
owns residential real property in this state, one or more assistant
attorneys general and any other members that the attorney general
considers necessary or appropriate.
(b) On or before July 1, 2025, the attorney general shall publish on
the attorney general's website the most current version of the standard
form that is developed and approved by the advisory group pursuant to
this section.
Sec. 4. K.S.A. 66-1,184 is hereby amended to read as follows: 66-
1,184. (a) As used in this section:
(1) "Avoided cost" means the incremental cost to a utility of
electric energy that such utility would generate itself or purchase from
another source and as such term is interpreted by the federal energy
regulatory commission from time to time.
(2) "Distributed energy system" means any device or assembly of
devices and supporting facilities that are capable of feeding excess
electric power generated by a customer's energy producing system into
the utility's system , such that all energy output and all other services
will be fully consumed by the customer or the utility.
(3) "Export" means power that flows from a customer's electrical
system through such customer's billing meter and onto the utility's
electricity lines. "Export" includes the sum of power on all phase
conductors.
(4) "Interconnected" means a listed system that is designed to
export power and attached or connected on the customer's side of the
retail meter at the customer's delivery point.
(5) "Listed" means that the device or equipment has been tested
and certified to meet the institute of electrical and electronics
engineers safety standards that specifically pertain to the intended
function of the device or equipment.
(6) "Locational marginal price" means the hourly average market
price of alternating current energy per kilowatt hour established by the
applicable locational marginal price pricing node of the southwest
power pool.
(7) "Monthly system average cost of energy per kilowatt hour"
means the sum of all volumetric costs incurred by an electric utility
during a calendar month or similar billing period as billed to the utility
by generation and transmission providers and any volumetric
generation costs incurred by the utility to generate energy divided by
the total amount of retail kilowatt- hours that the utility sold in such
month or billing period.
(8) "Permission to operate" means the operational date of the
customer's distributed energy system as determined by the utility.
(9) "Utility" means any electric public utility as defined in K.S.A.
66-101a, and amendments thereto, cooperative as defined in K.S.A. 17-
4603, and amendments thereto, electric utility owned by one or more
such cooperatives, nonstock member-owned electric cooperative
corporation incorporated in this state or municipally owned or
operated electric utility.
(10) "Witness test" means an authorized representative of the
electric utility who measures or verifies a specific setting or
operational condition.
(b) Except as provided in subsection (b), Except as otherwise
provided in this section, every public utility which provides retail
electric services in this state that provides retail electric service in this
state shall enter into a contract for parallel generation service with any
Substitute for HOUSE BILL No. 2149—page 5
person who is a customer of in good standing with such utility , upon
request of such customer, whereby that authorizes such customer may
to attach or connect to the utility's delivery and metering system an
apparatus or a listed device for the purpose of feeding exporting excess
electrical power which is generated by such customer's distributed
energy producing system into to the utility's system. No such apparatus
or device shall either cause damage to the public 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 on such customer's monthly bill for
energy supplied to the utility by such customer.
(b) (1) For purposes of this subsection:
(A) "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;
(B) "school" means Cloud county community college and Dodge
City community college.
(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 kilowatts or less, or is a commercial customer of the
utility and owns a renewable generator with a capacity of 200 kilowatts
or less or is a school and owns a renewable generator with a capacity of
1.5 megawatts or less. Such generator shall be appropriately sized for
such customer's anticipated electric load. A commercial customer who
uses the operation of a renewable generator in connection with
irrigation pumps shall not request more than 10 irrigation pumps
connected to renewable generators be attached or connected to the
utility's system. At the customer's delivery point on the customer's side
of the retail meter 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 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.
(c) (1) A utility may require any customer who is seeking to
construct and install a distributed energy system to submit an
application prior to any connection of the distributed energy system
with the utility's system, notify the utility of the proposed distributed
energy system and verify that such system is constructed, installed and
operated in accordance with all applicable standards and codes.
(2) Any customer that submits an application to construct, install
and operate a distributed energy system shall have the option to remain
on a retail rate tariff that is identical to the same rate class for which
such customer would otherwise qualify as a retail customer who is not
otherwise receiving service under a parallel generation service tariff
or net metering tariff.
(3) A utility shall provide written notice of receipt of any
application submitted pursuant to this section to the applicant within
30 days following such receipt. A utility shall approve or deny any such
application or a request for system certification pursuant to such an
application within 90 calendar days following receipt of such
application or request. If one or more additional studies are required, a
utility shall not be subject to such 90-day deadline but shall provide the
applicant with an estimated time frame for action on such application
and act on such application as soon as practicable after any such
studies are completed. If the utility denies such application or request,
the utility shall provide to the applicant a list of the reasons for such
denial and the corrective actions needed for approval.
(4) A utility may assess upon any customer requesting to install a
distributed energy system:
Substitute for HOUSE BILL No. 2149—page 6
(A) A fair and reasonable nonrefundable interconnection
application fee;
(B) any applicable costs incurred by the utility for any study
conducted to verify and allow the requested export capacity to be
interconnected at the customer's point of delivery, including, but not
limited to , costs incurred as a result of the southwest power pool's
study processes; and
(C) costs associated with any related system upgrade costs,
devices and equipment required to be furnished by the utility for the
provision of accepting the requested export capacity.
(d) (1) Every such contract for parallel generation service shall
include, but need not be limited to, provisions relating to fair and
equitable compensation for energy supplied exported to the utility by
such customer. Except as authorized pursuant to paragraph (4), such
compensation shall be not less than 100% of the utility's monthly
system average cost of energy per kilowatt hour except that in the case
of renewable generators with a capacity of 200 kilowatts or less, such
compensation shall be not less than 150% of the utility's monthly
system average cost of energy per kilowatt hour not less than 100% of
the utility's monthly avoided cost.
(2) A utility may shall 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.
(3) A utility shall disclose to any customer the formula that the
utility uses to determine the compensation that the utility provides
pursuant to a contract for parallel generation service.
(4) (A) A utility may use locational marginal price or the monthly
system average cost of energy per kilowatt hour to determine
compensation for energy exported to the utility by the customer. Any
such utility that uses locational marginal price or monthly system
average cost of energy per kilowatt hour shall compensate the
customer for the energy exported to the utility at least annually. Such
compensation may be paid to such customer or credited to the
customer's account. When determining compensation pursuant to this
paragraph, in no case shall a utility issue an invoice for energy
exported to the utility by the customer's distributed energy system.
Upon the request of any customer who is subject to such locational
marginal price compensation pursuant to this paragraph, the utility
shall disclose the locational marginal price and the corresponding
amount of energy exported to the utility by the customer's distributed
energy system.
(B) The provisions of this paragraph shall expire on July 1, 2030.
(3)(e) A customer-generator of any investor owned investor-
owned utility shall have the option of entering into a contract pursuant
to this subsection (b) section or utilizing the net metering and easy
connection act. The customer-generator shall exercise the option in
writing, filed with the utility.
(c)(f) The following terms and conditions shall apply to contracts
entered into under subsection (a) or (b) for parallel generation service:
(1) The utility will supply shall furnish, own, and maintain, at the
utility's expense, all necessary meters and associated equipment utilized
for billing. In addition, and for the purposes of monitoring customer
generation and load,;
(2) the utility may install , at its the utility's expense, load research
metering. meters and equipment to monitor customer generation and
load. The customer shall supply provide, at no expense to the utility, a
suitable location for such meters and associated equipment used for
billing and for load research;
(2)(3) for the purposes of insuring ensuring 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 production 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;
Substitute for HOUSE BILL No. 2149—page 7
(3)(4) 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 , at the customer's expense, a listed device that is suitable
for the operation of the generator customer's distributed energy system
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,
(5) the utility may install, own, and maintain a disconnecting
device located near the electric meter or meters . or may require that a
customer's distributed energy system contain a switch, circuit breaker,
fuse or other device or feature that may be accessed by the utility at
any time and would provide an authorized utility worker the ability to
manually disconnect the customer's distributed energy system from the
utility's electric distribution system;
(6) interconnection facilities between the customer's and the
utility's equipment shall be accessible at all reasonable times to utility
personnel. Upon notification by the customer of the customer's intent to
construct and install parallel generation, the utility shall provide the
customer a written estimate of all costs that will be incurred by the
utility and billed to the customer to accommodate the interconnection.
The customer may be required to reimburse the utility for any
equipment or facilities required as a result of the installation by the
customer of generation in parallel with the utility's service.;
(7) 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 customer's distributed energy system;
(4) the utility may require a special agreement for conditions
related to technical and safety aspects of parallel generation; and
(5)(8) prior to granting permission to operate, the utility may
require:
(A) A witness test of the customer's distributed energy system and
interconnection facilities;
(B) the customer to provide the certificate of inspection of the
customer's distributed energy system completed pursuant to any
municipal ordinance or code requirements or a certification from an
electrician or electrical engineer licensed in this state that the system is
installed according to applicable codes and standards; and
(C) the customer to provide documentation that the customer's
distributed energy system was constructed and installed under the
direction of a person who is certified by the north American board of
certified energy practitioners or either a master electrician or
electrical contractor licensed under the provisions of K.S.A. 12-1525 et
seq., and amendments thereto;
(9) the utility may periodically require a witness test of the
customer's distributed energy system and interconnection facilities
throughout the provision of parallel generation service;
(10) the utility shall have the right and authority to disconnect
and isolate a customer's distributed energy system without notice and
at utility's sole discretion when:
(A) Electric service to a customer's premises is discontinued for
any reason;
(B) adverse electrical effects, such as power quality problems, are
occurring or are believed to be occurring on the utility's system or the
electrical equipment of other utility customers;
(C) hazardous conditions on the utility's system are occurring or
are believed to be occurring as a result of the operation of the
distributed energy system or protective equipment;
(D) the utility identifies uninspected or unapproved equipment or
modifications to the distributed energy system after initial approval;
(E) there is recurring abnormal operation, substandard operation
Substitute for HOUSE BILL No. 2149—page 8
or inadequate maintenance of the distributed energy system;
(F) the customer fails to remit payment to the utility for any
amounts owed, including, but not limited to, amounts invoiced;
(G) the customer does not comply with the obligations of the
interconnection agreement, except that, if such noncompliance is not
an emergency situation, the utility shall give a customer 90 days to
cure the noncompliance prior to disconnecting and isolating the
distributed energy system; or
(H) such disconnection is necessary due to emergency or
maintenance purposes. In the event that the utility disconnects the
distributed energy system for maintenance, the utility shall make
reasonable efforts to reconnect the distributed generating system as
soon as practicable; and
(11) the customer shall retain the authority to temporarily
disconnect such customer's distributed energy system from the utility's
system at any time. Any such temporary disconnection shall not be
construed as a customer's termination of the interconnection agreement
without an express action to terminate such agreement pursuant to the
terms and conditions of the agreement.
(g) The export capacity of a customer's renewable energy system
shall be appropriately sized for such customer's anticipated electric
load as follows:
(1) (A) Divide the customer's historic consumption in kilowatt-
hours for the previous 12-month period by 8,760 and divide such
quotient by a capacity factor of:
(i) 0.144 when such customer is in the service territory of an
investor-owned utility; and
(ii) 0.288 when such customer is in the service territory of a
cooperative as defined in K.S.A. 17-4603, and amendments thereto, an
electric utility owned by one or more of such cooperatives, a nonstock
member-owned electric cooperative corporation incorporated in this
state or a municipally owned or operated electric utility; or
(B) if the customer does not have historic consumption data that
adequately reflects the customer's consumption at such premises, the
customer's historic consumption for the previous 12-month period shall
be 7.15 kilowatt-hours per square foot of conditioned space; and
(2) round the amount determined pursuant to paragraph (1) up to
the nearest one kilowatt alternating current power increment.
(h) (1) Except as provided in subsection (i), each utility shall,
make parallel generation service available to customers who are in
good standing with the utility , on a first-come, first-served basis, until
the utility's aggregate export capacity from all distributed energy
systems, including systems that are subject to a parallel generation
service tariff established pursuant to this section and systems that are
subject to a net metering tariff that was either voluntarily established
by the utility or pursuant to K.S.A. 66-1263 et seq., and amendments
thereto, equals or exceeds the following:
(A) Commencing on July 1, 2025, 6% of the utility's historic peak
demand;
(B) commencing on July 1, 2026, 7% of the utility's historic peak
demand; and
(C) commencing on July 1, 2027, and each year thereafter, 8% of
the utility's historic peak demand.
(2) The utility may limit the number and size export capacity of
renewable generators additional distributed energy systems to be
connected to the utility's system due to the capacity of the distribution
line to which such renewable generator would distributed energy
system will be connected, and in no case shall the utility be obligated to
purchase an amount greater than 4% of such utility's peak power
requirements.
(i) (1) A utility shall not be required to make parallel generation
service available to any customer who has a new or expanded facility
that receives electric service at a voltage of 34.5 kilovolts or higher
and commences such electric service on or after July 1, 2025.
Substitute for HOUSE BILL No. 2149—page 9
(2) To determine a utility's historic peak demand for purposes of
subsection (h), a utility's peak demand shall not include the additional
demand of any new or expanded facility of an industrial, commercial
or data center customer that receives electric service at a voltage of
34.5 kilovolts or higher and commences such electric service on or
after July 1, 2025.
(3) The provisions of this subsection shall expire on July 1, 2026.
(j) For any customer with a distributed energy system:
(1) The customer shall own and maintain any necessary export-
limiting device;
(2) protections shall be in place to restrict the export-limiting
device settings to qualified persons;
(3) the utility shall have the option to require a witness test of the
export-limiting device's functions or settings prior to granting
permission to operate and at any time while the distributed energy
system is connected to the utility's system;
(4) the export capacity of the system shall not be increased
without prior approval of the utility;
(5) the customer shall allow the utility to perform periodic witness
tests of the export-limiting device's functions or settings upon request;
(6) if the export-limiting device's functions or settings are
incorrect or if the device fails to limit the export of power below the
designed export capacity for more than 15 minutes in any single event,
the customer shall cease operation of the system until repair or
reprogramming of the export-limiting device is completed. For
purposes of this subparagraph, the utility may require and conduct a
witness test prior to authorizing the customer to resume operation of
the system; and
(7) the utility shall not restrict the brand or model of the export-
limiting device if the device is approved by the manufacturer of a listed
distributed energy system or is listed to perform such operations in
conjunction with the customer's system.
(d)(k) (1) (A) For a utility that is subject to the jurisdiction,
regulation, supervision and control of the state corporation
commission, service under any parallel generation service contract
entered into under subsection (a) or (b) shall be subject to either the
utility's rules and regulations on file with the state corporation
commission, which shall include a standard interconnection process
and requirements for such utility's system, or the current federal energy
regulatory commission interconnection procedures and regulations.
(B) For a utility that is not subject to the jurisdiction, regulation,
supervision and control of the state corporation commission, service
under any parallel generation service contract shall be subject to the
current federal energy regulatory commission interconnection
procedures and regulations.
(e)(2) In any case where the owner of the renewable generator
customer and the a utility that is subject to the jurisdiction, regulation,
supervision and control of the state corporation commission cannot
agree to terms and conditions of any contract provided for by this
section, the state corporation commission shall establish the terms and
conditions for such contract.
(l) A utility shall not impose any additional fees, charges or
requirements for the provision of parallel generation service unless
expressly authorized pursuant to this section. Nothing in this section
shall be construed to:
(1) Prohibit a utility from charging a distributed energy customer
for the use of the utility's system; and
(2) authorize a utility to charge a distributed energy customer for
power exported to the utility by such customer.
(m) (1) Any customer who has received approval from a utility to
construct or operate a distributed energy system pursuant to this
section shall notify the utility within 30 calendar days following the
date that the construction has been canceled or the system is
permanently shut down. Upon receipt of such notice, the utility shall
Substitute for HOUSE BILL No. 2149—page 10
cancel the parallel generation service contract with such customer.
(2) If a utility has reason to suspect that a customer's distributed
energy system has been abandoned and is no longer producing energy,
such utility may request verification from the customer that the system
is still functioning, or that the customer has a reasonable plan to
reenergize the system. If the customer fails to repair the system or
provide a reasonable plan to complete such repairs within six months,
the utility shall have the option to cancel the parallel generation
service contract with such customer.
(3) Upon cancellation of any parallel generation service contract
pursuant to this subsection, the utility shall not be obligated to refund
any fees previously paid by the customer.
(n) (1) A customer shall have the right to repair or rebuild such
customer's distributed energy system with listed equipment as long as
such repair or rebuilding does not cause an increase in export
capacity.
(2) If a customer repairs or replaces a distributed energy system,
the customer shall notify the utility prior to such repair or replacement
and provide proof that the new equipment complies with the same
rules, regulations and approved capacity as the original installation.
The utility shall have the right to require and conduct a witness test
prior to authorizing operation of the system. A customer who repairs or
replaces a system pursuant to this paragraph shall not be required to
submit a new parallel generation service application to the utility.
(3) A customer shall not repair or replace a distributed energy
system in a way that increases the export capacity of the system without
providing prior notification to the utility. The utility may require the
customer to submit a new parallel generation service application to
include the new provisions and requirements relating to such system.
(f)(o) (1) The governing body of any school desiring to proceed
under this section shall, prior to taking any action permitted by this
section, make a finding that either:
(1)(A) Net energy cost savings will accrue to the school from such
renewable generation over a 20-year period; or
(2)(B) that such renewable generation is a science project being
conducted for educational purposes and that such project may not
recoup the expenses of the project through energy cost savings.
(2) Any school proceeding under this section may contract or
enter into a finance, pledge, loan or lease-purchase agreement with the
Kansas development finance authority as a means of financing the cost
of such renewable generation.
(g)(p) Each kilowatt of nameplate capacity of the parallel
generation of electricity provided for in this section shall count as 1.10
kilowatts toward the compliance of the affected utility, as defined in
K.S.A. 66-1257, and amendments thereto, and with whom the
customer-generator has contracted, with the renewable energy
standards act in K.S.A. 66-1256 through 66-1262, and amendments
theretoNothing in this section shall be construed to require any
cooperative as defined in K.S.A. 17-4603, and amendments thereto,
electric utility owned by one or more such cooperatives, nonstock
member-owned electric cooperative corporation incorporated in this
state or municipally owned or operated electric utility to opt in to or
otherwise participate in any demand response or distributed energy
resource aggregation programs.
(h)(q) The provisions of the net metering and easy connection act
shall not preclude the state corporation commission from approving net
metering tariffs upon request of an electric utility for other methods of
renewable generation not prescribed in subsection (b)(1) of K.S.A. 66-
1264(b)(1), and amendments thereto.
Sec. 5. K.S.A. 66-1268 is hereby amended to read as follows: 66-
1268. (a) Net metered facilities must meet all applicable safety,
performance, interconnection and reliability standards established by
the national electrical code, the national electrical safety code, the
institute of electrical and electronics engineers, underwriters
Substitute for HOUSE BILL No. 2149—page 11
laboratories, the federal energy regulatory commission and any local
governing authorities. A utility may require that a customer-generator's
system contain a switch, circuit breaker, fuse or other easily accessible
device or feature located in immediate proximity to the customer-
generator's metering equipment that would allow a utility worker the
ability to manually and instantly disconnect the unit from the utility's
electric distribution system.
(b) A utility may not require a customer-generator whose net
metering facility meets the standards in subsection (a) to comply with
additional safety or performance standards or perform or pay for
additional tests or purchase additional liability insurance. A utility shall
not be liable directly or indirectly for permitting or continuing to allow
an attachment of a net metered facility or for the acts or omissions of
the customer-generator that cause loss or injury, including death, to any
third party.
(c) (1) Any customer-generator who has received approval from a
utility to construct or operate a net metering facility shall notify the
utility within 30 calendar days following the date that the construction
has been canceled or the facility is permanently shut down. Upon
receipt of such notice, the utility shall cancel the interconnection
agreement with such customer.
(2) If a utility has reason to suspect that a customer-generator's
facility has been abandoned and is no longer producing energy, such
utility may request verification from the customer-generator that the
facility is still functioning or that the customer-generator has a
reasonable plan to reenergize the facility. If the customer-generator
fails to repair the facility or provide a reasonable plan to complete
such repairs within six months, the utility shall have the option to
cancel the interconnection agreement with such customer-generator.
(3) Upon cancellation of any interconnection agreement pursuant
to this subsection, the utility shall not be obligated to refund any fees
previously paid by the customer-generator.
(d) (1) A customer-generator shall have the right to repair or
rebuild such customer-generator's net metering facility that is subject
to an interconnection agreement with listed equipment as long as such
repair or rebuilding does not cause an increase in export capacity.
(2) If a customer-generator repairs or replaces a facility, the
customer shall notify the utility prior to such repair or replacement and
provide proof that the new equipment complies with the same rules,
regulations and approved capacity as the original installation. The
utility shall have the right to require and conduct a witness test prior to
authorizing operation of the facility. A customer who repairs or
replaces a facility pursuant to this paragraph shall not be required to
submit a new net metering interconnection application to the utility.
(3) A customer-generator shall not repair or replace a facility
system in a way that increases the export capacity of the system without
providing prior notification to the utility. The utility may require the
customer-generator to submit a new net metering interconnection
application to include the new provisions and requirements relating to
such facility.
Substitute for HOUSE BILL No. 2149—page 12
Sec. 6. K.S.A. 66-1,184 and 66-1268 are hereby repealed.
Sec. 7. This act shall take effect and be in force from and after its
publication in the Kansas register.
I hereby certify that the above BILL originated in the House, and passed
that body
HOUSE concurred in
SENATE amendments __________________________________________________________________
Speaker of the House.
Chief Clerk of the House.
Passed the SENATE
as amended
President of the Senate.
Secretary of the Senate.
APPROVED ______________________________________________________________________________
Governor.