Enacting the transparency and reform of utility expenditures act.

Session of 2026
HOUSE BILL No. 2483
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 energy; enacting the transparency and reform of
utility expenditures act; requiring the state corporation commission to
prepare and submit a report to the legislature regarding the electric
transmission projects recommended for construction by a regional
transmission organization; requiring the commission to provide weekly
notice of meetings that were held with stakeholders if such meetings
pertained to legislative or regulatory matters that may impact electric
rates; requiring the construction of certain transmission lines that are
directed by a regional transmission organization to be subject to
competitive bidding; prohibiting the commission and certain electric
public utilities from supporting any integrated transmission plan unless
such plan provides benefits to the state; authorizing sales of energy and
energy services pursuant to power purchase agreements and energy
storage service agreements; exempting such sales from the retail
electric suppliers act and public utility regulation; prohibiting
municipalities from imposing restrictions on the construction and
operation of nuclear energy facilities; prohibiting commissioners and
staff of the state corporation commission from being employed by a
public utility within one year following the date that such person ceased
to hold such position; requiring legislative approval prior to the
construction of any high-impact electric transmission line; requiring
members appointed to the citizens' utility ratepayer board to be subject
to senate confirmation; limiting the membership of the citizens' utility
ratepayer board from the same political party to not more than three
members; authorizing the consumer counsel of the citizens' utility
ratepayer board to represent the interests of residential and small
commercial ratepayers before the federal energy regulatory commission
and regional transmission organization; prohibiting electric public
utilities from changing the utility's transmission delivery charge and
requiring any such changes to be made in a general retail rate
proceeding; requiring the commission to provide notice to certain
legislative committees of matters that may lead to an increase in
electric rates pending before a regional transmission organization;
amending K.S.A. 66-1,170, 66-1,177, 66-1222, 66-1223 and 74-633
and K.S.A. 2025 Supp. 66-104, 66-1,178 and 66-1237 and repealing
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the existing sections.
WHEREAS, This act shall be known and may be cited as the
transparency and reform of utility expenditures act.
Now, therefore:
Be it enacted by the Legislature of the State of Kansas:
New Section 1. (a) On or before January 31, 2027, and each January
31 thereafter, the state corporation commission shall prepare and submit a
report to the legislature, the senate committee on utilities and the house of
representatives committee on energy, utilities and telecommunications, or
any successor committees. Such report shall provide:
(1) A description and the estimated cost of each project that is
included in the final consolidated portfolio of the most recently approved
integrated transmission plan. Such report shall be organized by the
project's classification under such integrated transmission plan in the
following order: Reliability projects; winter weather projects; and
economic projects;
(2) a statement of whether the commission and the commission's
designated representative will support the project and a description of the
purported benefits and retail rate impacts to ratepayers in this state;
(3) a description of the efforts that the state corporation commission
and the commission's designated representative has undertaken or will
undertake to moderate the transmission-related costs to the lowest
reasonable amount;
(4) an overview of the commission's determination and plan
established pursuant to subsection (b); and
(5) a list of each project that was issued a notice to construct or notice
to construct with conditions by the regional transmission organization on
or after January 1, 2025, including the original estimated cost of the
project, the final cost of the project and the difference between the two
amounts.
(b) Prior to submitting the report required pursuant to this section, the
commission shall determine whether the anticipated transmission-related
costs identified pursuant to the integrated transmission plan are moderated
at the lowest reasonable amount. Such costs shall be determined to be
moderated at the lowest reasonable amount if such costs do not exceed
150% of the average annual transmission-related costs incurred for
projects directed by the regional transmission organization over the
immediately preceding 10 years as adjusted for inflation. If the
commission finds that such costs are not moderated at such amount, the
commission shall develop a plan for electric utilities to reduce financial
obligations to and participation in future transmission projects directed by
the regional transmission organization. The commission shall submit such
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HB 2483 3
findings and plan to the regional transmission organization.
(c) As used in this section:
(1) "Designated representative" means the state corporation
commission's representative to a regional transmission organization.
(2) "Integrated transmission plan" means the integrated transmission
expansion plan that is approved by the regional transmission organization
and developed through a regional planning process built to leverage
knowledge of the transmission system's reliability, public policy,
operational and economic needs, as well as compliance, generator
interconnection and transmission service request impacts to develop a
near-term and long-term transmission portfolio over a 10-year planning
horizon.
(3) "Regional transmission organization" means a regional
transmission organization that is subject to the jurisdiction of the federal
energy regulatory commission.
New Sec. 2. (a) The state corporation commission shall provide
notice of any meeting that occurred regarding legislative or regulatory
matters that may impact electric rates if such meeting included a
representative of the commission, including any commissioner or
commission staff, and a representative of a public utility or other entity
who has a substantial interest in any such matter. The notice shall include:
(1) The name of each person that participated in the meeting;
(2) the entity that each such person is affiliated with; and
(3) a short summary of the topic and purpose of the meeting.
(b) Such notice shall be posted on the commission's website each
week and shall include all such meetings that occurred during the
preceding week. The commission shall maintain any such information
posted to the commission's website for not less than 60 days following the
day that such information was first posted.
New Sec. 3. (a) The state corporation commission or any electric
public utility that serves 5,000 retail electric customers or more in this
state shall not:
(1) Participate in or permit the construction of any transmission line
project that will be used to provide for the bulk transfer of 300 kilovolts or
more of electricity if the construction of such line is directed by a regional
transmission organization pursuant to a notice to construct or notice to
construct with conditions unless such transmission line project is subject to
a competitive bid process; or
(2) support in any manner an integrated transmission plan of a
regional transmission organization, unless such plan does not:
(A) Impose a net negative benefit upon the state of Kansas; or
(B) provide to any other state located within the region served by
such regional transmission organization a benefit that is equal to or
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exceeds two times the benefit that the state of Kansas will receive.
(b) As used in this section, "integrated transmission plan" and
"regional transmission organization" mean the same as defined in section
1, and amendments thereto.
New Sec. 4. (a) Any person or entity may enter into a power purchase
agreement or energy storage service agreement with a distributed energy
supplier for the purpose of constructing, installing or placing in service an
eligible generation or storage facility to serve the energy needs of such
person or entity.
(b) (1) Except as provided in paragraph (2), the provisions of K.S.A.
66-1,184 and 66-1263 et seq., and amendments thereto, shall apply as such
provisions may be made applicable to the interconnection and operation of
an eligible generation or storage facility pursuant to a power purchase
agreement or energy storage service agreement under this section.
Notwithstanding the provisions of this paragraph, if any eligible
generation or storage facility is located or proposed to be located in the
retail electric service territory of any cooperative established pursuant to
K.S.A. 17-4601 et seq., and amendments thereto, subsidiary of any such
cooperative or municipally owned or operated electric utility, no sales shall
occur pursuant to a power purchase agreement or energy storage service
agreement unless the governing body of such cooperative, subsidiary or
municipal utility authorizes the eligible generation or storage facility to be
constructed, installed or placed in service within such retail electric service
territory.
(2) The provisions of K.S.A. 66-1,184 or 66-1263 et seq., and
amendments thereto, shall not apply to the interconnection and operation
of an eligible generation or storage facility if such facility is constructed,
installed or placed in service pursuant to a power purchase agreement or
energy storage service agreement that is executed between an owner or
operator of a new or expanded large load facility and a distributed energy
supplier. Notwithstanding the provisions of this paragraph, if any new or
expanded large load facility is located or proposed to be located in the
retail electric service territory of any cooperative established pursuant to
K.S.A. 17-4601 et seq., and amendments thereto, subsidiary of any such
cooperative or municipally owned or operated electric utility, no sales shall
occur pursuant to a power purchase agreement or energy storage service
agreement unless the governing body of such cooperative, subsidiary or
municipal utility authorizes the eligible generation or storage facility to be
constructed, installed or placed in service within such retail electric service
territory. Each utility described in this paragraph shall establish a
procedural process to accept and make determinations regarding
applications submitted pursuant to this subsection.
(c) Sales of energy and energy services pursuant to a power purchase
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agreement or energy storage service agreement shall be subject to taxation
in accordance with the general tax law of the state, including the retailers'
sales tax imposed pursuant to K.S.A. 12-187 et seq., and amendments
thereto.
(d) As used in this section:
(1) "Distributed energy supplier" means any business entity and any
successor or assign of such business entity that transacts business in the
state for the purpose of constructing, installing or placing in service an
eligible generation or storage facility and selling the energy and energy
services associated with such eligible generation or storage facility
pursuant to a power purchase agreement or energy storage service
agreement.
(2) (A) "Electric generation facility" means any facility, device or
system of devices that is capable of generating or producing electricity
using any of the following resources or technologies:
(i) Renewable energy resources as defined in K.S.A. 66-1257, and
amendments thereto;
(ii) nuclear energy;
(iii) natural gas; or
(iv) hydrogen.
(B) "Electric generation facility" includes any ancillary energy
storage system that is appurtenant to an electric generation facility.
(3) (A) "Eligible generation or storage facility" means any electric
generation facility or energy storage system that is:
(i) Installed, owned or operated by a distributed energy supplier
pursuant to the terms and conditions of a power purchase agreement or
energy storage service agreement;
(ii) colocated on premises owned, operated, leased or otherwise
controlled by the person or entity that contracts for such facility or system
pursuant to a power purchase agreement or energy storage service
agreement; and
(iii) designed to offset part or all of such person or entity's expected
electrical load.
(B) "Eligible generation or storage facility" does not include a nuclear
energy facility where the nuclear reactors are located 500 feet or more
below ground level.
(4) "Energy storage service agreement" means a contractual
agreement between a distributed energy supplier and a person or entity that
sets forth terms and conditions in which:
(A) The distributed energy supplier agrees to install, own and operate
an energy storage system on premises owned, operated, leased or
otherwise controlled by such person or entity to serve the energy needs of
such person or entity; and
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(B) such person or entity agrees to purchase the energy discharged by
such system or other associated services for a specific period of time.
(5) "Energy storage system" means any facility, device or system of
devices that uses mechanical, chemical or thermal processes to charge,
collect, store or absorb energy and then discharge such energy at a later
time to:
(A) Provide electricity, generate electricity or provide other energy
services, including balancing energy demand or reducing peak electrical
demand; or
(B) use directly in heating or cooling applications in a manner that
reduces or avoids the need to use electricity for such applications.
(6) "New or expanded large load facility" means any:
(A) New commercial or industrial facility that commences
commercial or industrial operations in the state on or after July 1, 2026,
and the monthly maximum electrical demand of such facility is reasonably
expected to be 25 megawatts or more; or
(B) existing commercial or industrial facility that commenced
commercial or industrial operations in the state prior to July 1, 2026, and
the monthly maximum electrical demand of such facility is reasonably
expected to increase by 25 megawatts or more on or after July 1, 2026.
(7) "Power purchase agreement" means a contractual agreement
between a distributed energy supplier and a person or entity that sets forth
terms and conditions in which:
(A) The distributed energy supplier agrees to install, own and operate
an electric generation facility on premises owned, operated, leased or
otherwise controlled by such person or entity to serve the energy needs of
such person or entity; and
(B) such person or entity agrees to purchase the energy produced by
such facility or other associated services for a specific period of time.
New Sec. 5. (a) A municipality shall not impose any ordinance,
resolution, code, rule, provision, standard permit, plan or any other binding
action that prohibits, discriminates against, restricts, limits, impairs, or has
the effect thereof, the construction and operation of a nuclear energy
facility.
(b) As used in this section:
(1) "Municipality" means any city, county or township, or other
political or taxing subdivision thereof, or any board, bureau, commission,
committee, department or division, or other agency thereof.
(2) "Nuclear energy facility" means a facility that generates electric
or thermal energy through nuclear fission or fusion, including advanced
reactors, small modular reactors, microreactors and associated fuel-cycle
and thermal-storage systems. "Nuclear energy facility" does not include
any facility where the nuclear reactors are located 500 feet or more below
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ground level.
New Sec. 6. No former commissioner, director, officer or employee
of the state corporation commission shall accept employment or receive
compensation from any public utility as defined in K.S.A. 66-104, and
amendments thereto, within 365 days after such former commissioner,
director, officer or employee has ceased to hold such position with the
commission.
Sec. 7. K.S.A. 2025 Supp. 66-104 is hereby amended to read as
follows: 66-104. (a) As used in this act, "public utility" means every
corporation, company, individual, association of persons, their trustees,
lessees or receivers, that now or hereafter may own, control, operate or
manage, except for private use, any equipment, plant or generating
machinery, or any part thereof, for the transmission of telephone messages
or for the transmission of telegraph messages in or through any part of the
state, or the conveyance of oil and gas through pipelines in or through any
part of the state, except pipelines less than 15 miles in length and not
operated in connection with or for the general commercial supply of gas or
oil, and all companies for the production, transmission, delivery or
furnishing of heat, light, water or power. No cooperative, cooperative
society, nonprofit or mutual corporation or association that is engaged
solely in furnishing telephone service to subscribers from one telephone
line without owning or operating its own separate central office facilities,
shall be subject to the jurisdiction and control of the commission as
provided in this section, except that it shall not construct or extend its
facilities across or beyond the territorial boundaries of any telephone
company or cooperative without first obtaining approval of the
commission. "Transmission of telephone messages" includes the
transmission by wire or other means of any voice, data, signals or
facsimile communications, including all such communications now in
existence or as may be developed in the future.
(b) "Public utility" includes that portion of every municipally owned
or operated electric or gas utility located in an area outside of and more
than three miles from the corporate limits of such municipality, but
regulation of the rates, charges, terms and conditions of service of such
utility within such area shall be subject to commission regulation only as
provided in K.S.A. 66-104f, and amendments thereto. Nothing in this act
shall apply to a municipally owned or operated utility, or portion thereof,
located within the corporate limits of such municipality or located outside
of such corporate limits but within three miles thereof.
(c) Except as provided in this section, the power and authority to
control and regulate all public utilities and common carriers situated and
operated wholly or principally within any city or principally operated for
the benefit of such city or its people, shall be vested exclusively in such
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city, subject only to the right to apply for relief to the corporation
commission as provided in K.S.A. 66-133, and amendments thereto, and to
the provisions of K.S.A. 66-104e, and amendments thereto. A transit
system principally engaged in rendering local transportation service in and
between contiguous cities in this and another state by means of street
railway, trolley bus and motor bus lines, or any combination thereof, shall
be deemed to be a public utility as that term is used in this act and shall be
subject to the jurisdiction of the commission.
(d) "Public utility" does not include any activity of:
(1) An otherwise jurisdictional corporation, company, individual,
association of persons, their trustees, lessees or receivers as to the
marketing or sale of:
(1)(A) Compressed natural gas for end use as motor vehicle fuel; or
(2)(B) electricity that is purchased through a retail electric supplier in
the certified territory of such retail electric supplier, as such terms are
defined in K.S.A. 66-1,170, and amendments thereto, for the sole purpose
of the provision of electric vehicle charging service to end users.; or
(2) a distributed energy supplier with respect to such supplier's
association with an eligible generation or storage facility under the
provisions of section 4, and amendments thereto.
(e) (1) Except as provided in paragraph (2), at the option of an
otherwise jurisdictional entity, "public utility" does not include any activity
or facility of such entity as to the generation, marketing and sale of
electricity generated by an electric generation facility or addition to an
electric generation facility that:
(A) Is newly constructed and placed in service on or after January 1,
2001; and
(B) is not in the rate base of:
(i) An electric public utility that is subject to rate regulation by the
state corporation commission;
(ii) any cooperative, as defined by K.S.A. 17-4603, and amendments
thereto, or any nonstock member-owned cooperative corporation
incorporated in this state; or
(iii) a municipally owned or operated electric utility.
(2) The provisions of this subsection shall not be construed to affect
the authority of the state corporation commission to regulate any activity
or facility of an otherwise jurisdictional entity with regard to wire stringing
pursuant to K.S.A. 66-183 et seq., and amendments thereto.
(f) Additional generating capacity achieved through efficiency gains
by refurbishing or replacing existing equipment at generating facilities
placed in service before January 1, 2001, shall not qualify under
subsection (e).
(g) For purposes of the authority to appropriate property through
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eminent domain, "public utility" does not include any activity for the siting
or placement of:
(1) Wind powered electrical generators or turbines, including the
towers; or
(2) solar powered electric generation equipment, including panels.
Sec. 8. K.S.A. 66-1,170 is hereby amended to read as follows: 66-
1,170. As used in this act:
(a) "Distribution line" means an electric line used to furnish retail
electric service, including any line from a distribution substation to an
electric consuming facility ; but such term . "Distribution line" does not
include a transmission facility used for the bulk transfer of energy even if
such energy is reduced in voltage and used as station power.
(b) "Electric consuming facility" means any entity which that utilizes
electric energy from a central station service.
(c) "Commission" means the state corporation commission of the
state of Kansas.
(d) "Retail electric supplier" means any person, firm, corporation,
municipality, association or cooperative corporation engaged in the
furnishing of retail electric service. "Retail electric supplier" does not
include the activity of a distributed energy supplier with respect to such
supplier's association with an eligible generation or storage facility under
the provisions of section 4, and amendments thereto.
(e) "Certified territory" means an electric service territory certified to
a retail electric supplier pursuant to this act.
(f) "Existing distribution line" means a distribution line which that is
in existence on the effective date of this act , and which is being or has
been used as such.
(g) "Single certified service territory" means that service area in
which where only one retail electric supplier has been granted a service
certificate by the commission.
(h) "Dual certified service territory" means that service area where
more than one retail electric supplier has been granted a service certificate
by the commission.
(i) "Station power" means electric energy used for operating
equipment necessary for the process of generating electricity at any
generating plant owned by a utility or a generating plant specified in
subsection (e) of K.S.A. 66-104(e), and amendments thereto, and placed in
use on or after January 1, 2002, whether such electrical energy is generated
at such generating plant or provided through the adjacent transformation
and transmission interconnect, but. "Station power" does not include
electric energy used for heating, lighting, air conditioning and office needs
of the buildings at a generating plant site.
Sec. 9. K.S.A. 66-1,177 is hereby amended to read as follows: 66-
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1,177. As used in this act , the following terms shall have the meanings
ascribed to them herein:
(a) "Electric utility" means every public utility, as defined by K.S.A.
66-104, which and amendments thereto, that owns, controls, operates or
manages any equipment, plant or generating machinery for the production,
transmission, delivery or furnishing, of electricity or electric power;
(b) "Electric transmission lines line" means any line or extension of a
line which that is at least five (5) miles in length and which is used for the
bulk transfer of two hundred thirty (230) kilovolts or more of electricity;
(c) "Commission" means the state corporation commission.
(d) "High-impact electric transmission line" means any line or
extension of a line that is at least one mile in length and used for the bulk
transfer of greater than 345 kilovolts of electricity.
Sec. 10. K.S.A. 2025 Supp. 66-1,178 is hereby amended to read as
follows: 66-1,178. (a) No electric utility may begin site preparation for or
construction of an electric transmission line, or exercise the right of
eminent domain to acquire any interest in land in connection with the site
preparation for construction of any such line without:
(1) First acquiring a siting permit from the commission; and
(2) if such line is a high-impact electric transmission line, also
acquiring the approval of the legislature in accordance with subsection
(c).
(b) (1) Whenever any electric utility desires to obtain such a siting
permit, the utility shall file an application with the commission setting
forth therein that the utility proposes to construct an electric transmission
line and specifying:
(1)(A) The proposed location thereof;
(2)(B) the names and addresses of the landowners of record whose
land or interest therein is proposed to be acquired in connection with the
construction of or is located within 660 feet of the center line of the
easement where the line is proposed to be located; and
(3)(C) such other information as may be required by the commission.
(b)(2) Upon the filing of an application pursuant to this subsection
(a), the commission shall fix a time for a public hearing on such
application, which shall be not more than 90 days after the date that the
application was filed, to determine the necessity for and the reasonableness
of the location of the proposed electric transmission line. The commission
shall fix the place for hearing, which shall be in one of the counties
through which the electric transmission line is proposed to traverse.
(c)(3) The commission may conduct an evidentiary hearing on an
application filed pursuant to this section at such time and place as the
commission deems appropriate.
(d)(4) The commission shall issue a final order on the application
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within 180 days after the date that the application was filed.
(c) (1) In addition to obtaining a siting permit from the commission, a
high-impact electric transmission line shall not be constructed in the state
unless the electric utility proposing to construct such line obtains the
approval of the legislature pursuant to this subsection. Within 30 days
following the commission's issuance of a siting permit for a high-impact
electric transmission line, the electric utility proposing such transmission
line shall submit written notice of such issuance to the legislature. Such
notice shall contain:
(A) A description of the high-impact electric transmission line,
including the proposed timeline, location and route;
(B) the reasons why such high-impact electric transmission line is
needed or necessary;
(C) the anticipated and maximum cost to construct such high-impact
electric transmission line;
(D) a copy of the application submitted to the commission pursuant
to subsection (b);
(E) a copy of the commission's order granting the transmission line
siting permit; and
(F) any other information that the electric utility deems necessary or
relevant.
(2) Legislative approval may be granted pursuant to an act of the
legislature or adoption of a concurrent resolution that approves of the
construction of the high-impact electric transmission line. Such approval
may be granted at any time. The legislature's failure to act on any notice
submitted pursuant to this section shall not be construed to establish such
legislative approval.
Sec. 11. K.S.A. 66-1222 is hereby amended to read as follows: 66-
1222. (a) There is hereby established a citizens' utility ratepayer board ,
which shall consist of five members appointed by the governor. On and
after July 1, 2026, any person appointed to the board shall be subject to
confirmation by the senate as provided in K.S.A. 75-4315b, and
amendments thereto. Not more than three members shall belong to the
same political party. Subject to the provisions of K.S.A. 75-4315c, and
amendments thereto, the governor shall appoint one member from each
congressional district and the remainder from the state at large. The
members of the board shall serve for a term of four years. All vacancies in
office of members so appointed shall be filled by appointment by the
governor for the unexpired term of the member creating the vacancy.
(b) The board shall organize annually by the election from its
membership of a chairperson and shall adopt such rules of procedure as
the board deems necessary for conducting its business.
(c) The board shall hold such meetings as in its judgment may be
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HB 2483 12
necessary for the performance of its powers, duties and functions.
Appointive members of the board shall receive compensation, subsistence
allowances, mileage and other expenses for attending meetings of the
board as provided by K.S.A. 75-3223, and amendments thereto.
(d) The state corporation commission shall provide such technical
and clerical staff assistance as may be requested by the board in the
administration of the provisions of this act.
(e) The board shall administer this act and shall have and may
exercise the following powers, duties and functions:
(1) Employ an attorney as a consumer counsel;
(2) guide the activities of the consumer counsel; and
(3) recommend legislation to the legislature which that, in the board's
judgment, would positively affect the interests of utility consumers.
Sec. 12. K.S.A. 66-1223 is hereby amended to read as follows: 66-
1223. The consumer counsel may do the following:
(a) Represent residential and small commercial ratepayers before the
state corporation commission;
(b) function as an official intervenor intervene in cases filed with the
state corporation commission, including rate increase requests;
(c) initiate actions before the state corporation commission;
(d) represent residential and small commercial ratepayers who file
formal utility complaints with the state corporation commission;
(e) intervene in formal complaint cases which that would affect
residential and small commercial ratepayers; and
(f) make application for a rehearing or seek judicial review of any
order or decision of the state corporation commission;
(g) represent the interests of residential and small commercial
ratepayers by participating or intervening in federal energy regulatory
commission proceedings; and
(h) represent the interests of residential and small commercial
ratepayers by becoming a member of or participating in matters
considered by a regional transmission organization.
Sec. 13. K.S.A. 2025 Supp. 66-1237 is hereby amended to read as
follows: 66-1237. (a) Any electric utility subject to the regulation of the
state corporation commission pursuant to K.S.A. 66-101, and amendments
thereto, may seek to recover costs associated with transmission of electric
power, in a manner consistent with the determination of transmission-
related costs from an order of a regulatory authority having legal
jurisdiction provisions of this section, through a separate transmission
delivery charge included in customers' bills. The electric utility's initial
transmission delivery charge resulting from this section may be
determined by the commission either from transmission-related costs
approved in the electric utility's most recent retail rate filing or in an order
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HB 2483 13
establishing rates in response to a general retail rate application by an
electric utility.
(b) (1) If an electric utility elects to recover its transmission-related
costs through a transmission delivery charge, such electric utility shall
have the right to implement a transmission delivery charge through an
application to the commission.
(2) If an electric utility proposes to establish its initial transmission
delivery charge other than in connection with an application to the
commission that proposes a general retail rate change the commission
shall, effective the same date as the effective date of the initial
transmission delivery charge, unbundle the electric utility's retail rates in
such a manner that the sum of the revenue to be recovered from the initial
transmission delivery charge and the non-transmission-related retail rates
will be consistent with the revenue that would be recovered from the retail
rates in effect immediately prior to the effective date of the initial
transmission delivery charge.
(3) If an electric utility proposes to establish its initial transmission
delivery charge in connection with an application to the commission for a
general retail rate change, the commission shall, in its order in such rate
proceeding, determine the electric utility's transmission-related costs
related to its service to Kansas retail customers and determine an initial
transmission delivery charge sufficient to permit the electric utility to
recover from its Kansas retail customers such utility's transmission-related
costs incurred to provide service to such customers.
(c) Except as provided in subsection (d), all transmission-related costs
incurred by an electric utility and resulting from any order of a regulatory
authority having legal jurisdiction over transmission matters, including
orders setting rates on a subject-to-refund basis, shall be conclusively
presumed prudent for purposes of the transmission delivery charge and an
electric utility may change its transmission delivery charge whenever there
is a change in transmission-related costs resulting from such an order. The
commission may also order such a change if the utility fails to do so. An
electric utility shall submit a report to the commission at least 30 business
days before changing the utility's transmission delivery charge. If the
commission subsequently determines that all or part of such charge did not
result from an order described by this subsection, the commission may
require changes in the transmission delivery charge and impose
appropriate remedies, including refunds. (1) On an after July 1, 2026, an
electric utility shall not change such utility's transmission delivery charge
whenever there is a change in any transmission-related costs that are:
(A) Ordered or imposed by a regional transmission organization,
independent system operator or any other entity that is regulated by the
federal energy regulatory commission or other federal agency; or
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HB 2483 14
(B) associated with transmission facilities constructed as a result of
such utility's internal or local planning processes absent a notification to
construct or similar directive from a regional transmission organization,
independent system operator or other entity that is regulated by the
federal energy regulatory commission or other federal agency.
(2) An electric utility may only request to change the utility's
transmission delivery charge to recover any transmission-related costs
described in paragraph (1) in a general retail rate proceeding application
filed with the commission pursuant to K.S.A. 66-117, and amendments
thereto. Upon a filing of any such application, the commission may order
a change to such utility's transmission delivery charge to authorize
recovery of such transmission-related costs in accordance with the
provisions of K.S.A. 66-117, and amendments thereto.
(d) (1) Subject to the provisions of subsection (c), a for-profit,
investor-owned electric utility serving more than 20,000 customers in
Kansas that elects to recover such utility's transmission-related costs
through a transmission delivery charge pursuant to this section may
include, as a component of such charge, the following:
(A) All transmission-related costs associated with transmission
facilities constructed as a result of a notification to construct or similar
directive from a regional transmission organization or independent system
operator that is regulated by the federal energy regulatory commission, or
any successor agency; and
(B) all fees and costs imposed on the electric utility in connection
with the operation of wholesale power markets by a regional transmission
organization, independent system operator or other entity that is regulated
by the federal energy regulatory commission, other federal agency or any
successor federal agency.
(2) Subject to the provisions of subsection (c), a for-profit, investor-
owned electric utility serving more than 20,000 customers in Kansas may
recover, as a component of a transmission delivery charge, transmission-
related costs associated with transmission facilities constructed as a result
of such utility's internal or local planning processes absent a notification to
construct or similar directive from a regional transmission organization or
independent system operator that is regulated by the federal energy
regulatory commission, or any successor agency, subject to such utility's
compliance with subsections (e) and (f).
(e) To recover the costs described in subsection (d)(2) as a component
of a transmission delivery charge and to facilitate commissioner and
commission-authorized intervenor review, a utility shall make a
compliance filing with the commission prior to the time period provided
pursuant to subsection (f) for the commission to adjust the return on equity
relating to such costs. A compliance filing shall include all the compliance
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HB 2483 15
filing details required by this subsection. Such utility shall continue to
make annual compliance filings to the commission. Each compliance
filing shall provide the following:
(1) For each non-blanket work order transmission project over
$15,000,000, or a different amount deemed necessary by the commission
staff in consultation with the filing utility, an itemization of projected
transmission spending for the succeeding calendar year and the second
succeeding calendar year. The commission may expect a utility to provide
more extensive details for transmission projects in the succeeding calendar
year than for the second succeeding calendar year, but the utility shall
provide as many details as reasonably possible for transmission projects in
the second succeeding calendar year;
(2) for each transmission project:
(A) A project identifier or name;
(B) the anticipated in-service date;
(C) the projected cost;
(D) the specific location within the utility's system;
(E) whether the project is classified as a new build, rebuild, upgrade
or any other appropriate classification;
(F) a description providing the purpose for the project and the
anticipated reliability benefits;
(G) a description of the original vintage of the replaced facilities if
the project is classified as a rebuild or upgrade; and
(H) the load additions or economic development benefits
accommodated by the project, if any; and
(3) a proposed date and time for:
(A) Representatives of the public utility to conduct a technical
conference for the purpose of discussing the details of the compliance
filing with commission staff, the citizens utility ratepayer board and other
commission-authorized intervenors. Such technical conference shall be
held not later than 90 days after the utility filed the compliance filing; and
(B) the commission to hold a public workshop in which
representatives of the public utility shall present the details associated with
the transmission projects that are anticipated in the succeeding calendar
year. The public workshop shall allow for questions and comments from
the commission, commission staff and other commission-authorized
intervenors. The public workshop shall be held not later than 120 days
after the utility filed the compliance filing.
(f) Beginning January 1, 2024, and prior to April 1, 2024, for any
utility electing to recover the costs described in subsection (d)(2), the
commission shall adjust the return on equity used to determine the revenue
requirement of such costs from the federal energy regulatory commission's
jurisdictional return on equity to the state corporation commission's
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HB 2483 16
authorized return on equity last used to set the utility's base rates in effect
at the time of filing the transmission delivery charge update. If a return on
equity was not explicitly established during the utility's last general rate
case, the commission shall determine an appropriate return on equity from
the record of the last general rate case to establish the revenue requirement
for such costs. The use of the state corporation commission's authorized
return on equity shall not impact any project that was constructed as a
result of a notification to construct or similar directive from a regional
transmission organization or independent system operator that is regulated
by the federal energy regulatory commission, or any successor agency. In
any transmission delivery charge update filing, a utility electing to recover
the costs described in subsection (d)(2) shall utilize the state corporation
commission's authorized return on equity that was used to set the utility's
base rates in effect at the time of the update filing or that was stipulated
and approved by the commission for use in the transmission delivery
charge if a return on equity was not explicitly set during the last general
rate case, to determine the utility's transmission delivery charge update.
Sec. 14. K.S.A. 74-633 is hereby amended to read as follows: 74-633.
(a) The state corporation commission may designate a representative to
represent the interests of the state in any regional transmission
organization recognized by the federal energy regulatory commission of
which one or more Kansas electric public utilities is a member . Except as
provided in subsection (b), such designated representative is hereby
authorized to participate fully in all decision-making bodies of such
regional transmission organization, whether the decision of such bodies are
advisory to or binding on the regional transmission authorization.
(b) On and after July 1, 2026, before the commission's designated
representative acts as a voting member upon any matter that may lead to
an increase in electric rates for retail ratepayers in Kansas, without
regard to whether the decision may be advisory to or binding upon the
regional transmission organization, the commission's representative shall
provide notice of such matter to the senate committee on utilities and the
house of representatives committee on energy, utilities and
telecommunications, or any successor committees. Such notice shall
provide a reasonable description of the matter that will be considered by
the decision-making body of the regional transmission organization, the
anticipated impact on electric rates to the retail ratepayers in Kansas and
a rationale on whether and why the commission's representative will
support or not support such matter.
(b)(c) Nothing in this section shall limit the state corporation
commission's regulatory jurisdiction or authority to appeal to the federal
energy regulatory commission any decision by a regional transmission
organization or relieves the commission of its obligation and authority to
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HB 2483 17
ensure electric public utilities provide efficient and sufficient service.
Sec. 15. K.S.A. 66-1,170, 66-1,177, 66-1222, 66-1223 and 74-633
and K.S.A. 2025 Supp. 66-104, 66-1,178 and 66-1237 are hereby repealed.
Sec. 16. This act shall take effect and be in force from and after its
publication in the statute book.
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