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Session of 2025
HOUSE BILL No. 2226
By Committee on Energy, Utilities and Telecommunications
Requested by J.R. Behan on behalf of ITC Great Plains
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AN ACT concerning public utilities; relating to construction and
ownership of electric transmission lines; providing incumbent electric
transmission owners a right of first refusal to construct, upgrade, own
and maintain electric transmission lines that are approved for
construction by the regional transmission organization; requiring
incumbent electric transmission owners having such right of first
refusal to conduct a competitive bid process for the construction of any
electric transmission line with a need date of four years or more;
authorizing any other electric transmission entity to construct, upgrade,
own and maintain any such electric transmission line when the
incumbent electric transmission owner does not exercise such right.
Be it enacted by the Legislature of the State of Kansas:
Section 1. (a) An incumbent electric transmission owner shall have
the first right to construct, upgrade, own and maintain an electric
transmission line that has been identified in a transmission plan and
approved for construction by the regional transmission organization if:
(1) The electric transmission line interconnects or will interconnect to
facilities owned or proposed to be constructed by the incumbent electric
transmission owner; and
(2) the incumbent electric transmission owner exercises such right in
accordance with subsection (b).
(b) (1) Except as provided in paragraph (2), to exercise the right
established pursuant to subsection (a), the incumbent electric transmission
owner having the first right to construct, upgrade, own and maintain the
electric transmission line shall provide written notice to the regional
transmission organization within the time prescribed by the regional
transmission organization to indicate whether the incumbent electric
transmission owner or an affiliate or subsidiary of the incumbent electric
transmission owner intends to exercise such right for all or, if applicable, a
share of the electric transmission line. Upon submission of a notice of
intent to construct, upgrade, own and maintain an electric transmission line
pursuant to this section, the incumbent electric transmission owner shall:
(A) Have obtained a certificate of convenience and necessity for the
construction of the electric transmission line pursuant to K.S.A. 66-131,
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and amendments thereto; or
(B) within 18 months after submission of such notice, file an
application for a certificate of convenience and necessity pursuant to
K.S.A. 66-131, and amendments thereto, for the construction of such line.
(2) For an electric transmission line with a need date of four years or
more as determined by the regional transmission organization, to exercise
the right established pursuant to subsection (a), the incumbent electric
transmission owner having the first right to construct, own, maintain and
upgrade the electric transmission line shall:
(A) Provide written notice to the regional transmission organization
and to the state corporation commission to indicate whether the incumbent
electric transmission owner or an affiliate or subsidiary of the incumbent
electric transmission owner intends to exercise such right for all or, if
applicable, a share of the electric transmission line; and
(B) notwithstanding the incumbent transmission owner's
responsibility for completion of construction of the transmission line, issue
a request for proposal to solicit competitive bids for construction of the
electric transmission line. Such request for proposal and the associated
evaluation and selection process shall be overseen by an independent
evaluator appointed by the state corporation commission. Nothing in this
subsection shall prohibit the incumbent electric transmission owner from
submitting a bid for the construction of such electric transmission line.
(c) If an electric transmission line interconnects or will interconnect
to facilities owned by two or more incumbent electric transmission
owners, the right to construct, upgrade, own and maintain such electric
transmission line shall be determined by mutual agreement between such
incumbent electric transmission owners.
(d) Any other electric transmission entity may construct, upgrade,
own and maintain an electric transmission line if:
(1) The incumbent electric transmission owner:
(A) Does not timely indicate that the incumbent electric transmission
owner intends to exercise such right established pursuant to this section; or
(B) is deemed to not be qualified for the construction, upgrade,
ownership or maintenance of the electric transmission line by the regional
transmission organization; and
(2) the other electric transmission entity receives all necessary
authorizations or approvals required by the regional transmission
organization for the construction of such transmission line.
(e) Nothing in this section shall be construed to affect an incumbent
electric transmission owner's use and control of such incumbent electric
transmission owner's existing property rights, including, but not limited to,
the ability to assign the right established pursuant to subsection (a) or (b).
The retention, modification or transfer of existing property rights
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described in this section shall remain subject to the relevant state law
recognizing the property right.
(f) Nothing in this section shall be construed to affect the right of any
municipally owned or operated utility to construct, upgrade, own and
maintain transmission facilities, substations and controls used to serve load
requirements.
(g) As used in this section:
(1) "Electric transmission line" means any line or extension of a line
in this state with a rating of greater than 100 kilovolts and any related
transmission facilities, substations and controls.
(2) "Incumbent electric transmission owner" means every
corporation, including municipal corporations, company, individual,
association of persons, their trustees, lessees or receivers, that now or
hereafter owns, controls, operates or manages, except for private use, any
equipment or plant, or any part thereof, for the transmission, delivery or
furnishing of electricity in this state. If there are two or more incumbent
electric transmission owners of an electric transmission line, the term
"incumbent electric transmission owner" includes each such owner.
(3) "Regional transmission organization" means the organization
authorized by the federal energy regulatory commission to conduct
regional transmission planning and provide notice of requirements for
electric transmission line construction in the region that includes the state
of Kansas.
(4) "Transmission plan" means a transmission plan that is adopted by
the regional transmission organization.
Sec. 2. This act shall take effect and be in force from and after its
publication in the statute book.
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