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Session of 2026
HOUSE BILL No. 2664
By Representatives Neelly, Buehler, Johnson and Proctor
2-3
AN ACT concerning energy; enacting the private energy campus and
industrial host site generation act; authorizing the sales of electricity
and the provision of ancillary services to private industrial and data
center enterprises located on a private energy campus; exempting such
sales and services from public utility regulation; authorizing an electric
public utility to enter into interconnection and energy services
agreements with a private energy campus; exempting a private energy
campus from parallel generation and net metering requirements;
defining a private energy campus; amending K.S.A. 66-1,170 and
K.S.A. 2025 Supp. 66-104, 66-1,184 and 66-1264 and repealing the
existing sections.
WHEREAS, The state of Kansas is experiencing an increasing demand
for firm, dispatchable electric power driven by emerging and expanding
industrial sectors, including, but not limited to, hydrogen production,
ammonia synthesis, data center operations and advanced manufacturing;
and
WHEREAS, Regulated electric public utilities have publicly identified
a growing deficit in dispatchable generation capacity necessary to reliably
meet current and projected load demand forecasts; and
WHEREAS, Preserving the exclusive service territories of electric
public utilities is essential to maintaining reliable and affordable electric
service for residential and small commercial ratepayers; and
WHEREAS, Allowing voluntary, negotiated arrangements between a
private energy campus and electric public utilities for emergency support,
standby service, energy exports and grid reliability enhances the resilience
of the electric system and benefits all electric customers.
Now, therefore:
Be it enacted by the Legislature of the State of Kansas:
New Section 1. (a) This act shall be known and may be cited as the
private energy campus and industrial host-site generation act.
(b) It is the intent of the legislature to enable and encourage private
industrial self-generation that complements rather than competes with
electric public utilities by:
(1) Promoting private investment in industrial scale generation and
microgrid systems that are confined to a single private energy campus
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HB 2664 2
located on contiguous private property;
(2) providing statutory certainty that no capacity limitation shall
prohibit a private energy campus from interconnecting such campus'
generation assets to a public utility's electrical system;
(3) preserving the state corporation commission's jurisdiction over
interconnection and service requirements when a private energy campus
interconnects to and receives services from the electrical system of an
electric public utility regulated by the commission;
(4) preserving the jurisdiction of the governing body an electric
cooperative public utility or municipal electric utility over interconnection
and service requirements when a private energy campus interconnects to
the and receives services from the electrical system of any such utility; and
(5) authorizing sales of electricity and the provision of ancillary
services to private industrial and data center enterprises located on a
private energy campus.
(c) A private energy campus may:
(1) Sell electricity pursuant to private power purchase agreements and
provide ancillary services exclusively to private industrial or data center
enterprises that are located on such private energy campus; and
(2) enter into interconnection and other service agreements pursuant
to subsection (d) with the electric public utility that provides retail electric
service in the territory where the private energy campus is located.
(d) No sale, transfer or delivery of electricity by a private energy
campus shall be made to any entity located outside the physical boundaries
of the private energy campus or across any public right-of-way, easement
or noncontiguous parcel.
(e) Any electric public utility may enter into interconnection and
other service agreements with a private energy campus to provide standby
or emergency electric services to the private energy campus and authorize
the private energy campus to export energy to the utility's electrical
system. Any such agreements shall be voluntary and negotiated in good
faith between the utility and the private energy campus.
(f) (1) Any agreement between an electric public utility that is subject
to the jurisdiction of the state corporation commission and a private energy
campus shall be approved by the commission. The commission may adopt
rules and regulations to govern such agreements and establish
requirements with respect to interconnection, standby or emergency
electric services and energy exports to the utility's electrical system.
Nothing in this subsection shall be construed to grant the commission
jurisdiction over the rates, terms or conditions of private power purchase
agreements entered into solely between a private energy campus and a
private industrial or data center enterprise located on such campus.
(2) Any agreement between an electric public utility that is not
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subject to the jurisdiction of the state corporation commission and a
private energy campus shall be subject to approval by the governing body
of such utility. The governing body of any such utility may establish tariffs
or other requirements to govern such agreements and establish
requirements with respect to interconnection, standby service, safety and
energy exports the utility's electrical system.
(g) A private energy campus and the electric public utility that
provides services to such private energy campus shall not be subject to
parallel generation service requirements or limitations under K.S.A. 66-
1,184, and amendments thereto, or any of the service requirements or
limitations under the net metering and easy connection act, K.S.A. 66-
1263 et seq., and amendments thereto.
(h) Notwithstanding any provision of law to the contrary, sales of
electricity pursuant to a private power purchase agreement between a
private energy campus and a private industrial or data center enterprise
located on such campus shall not constitute the provision of retail electric
service under Kansas law.
(i) As used in this section:
(1) "Electric public utility" means any electric public utility as
defined in K.S.A. 66-101a, and amendments thereto, any cooperative as
defined in K.S.A. 66-104d, and amendments thereto, wholly owned
subsidiary of any such cooperative or a municipally owned or operated
electric utility.
(2) "Private energy campus" means any buildings, equipment,
structures or ancillary facilities that are:
(A) Located on one single site or adjacent and contiguous sites, all of
which are owned or operated by the same common owner;
(B) developed and operated for the primary purpose of serving the
energy needs of private industrial or data center enterprises located on
such property using electric generation, energy storage and ancillary
facilities that are located on such property;
(C) not intended, constructed or operated to provide retail electric
service to residential or small commercial customers; and
(D) subject to the operational control of the owner of such site or
sites, such that the owner has authority to direct the date-to-day
management of the energy services provided by the electric generation,
energy storage and ancillary facilities located on such property.
(3) "Private industrial or data center enterprise" means any medium to
heavy industrial, data center, hydrogen, ammonia, advanced manufacturing
or similar large enterprise that:
(A) Demands, processes or handles an exceptionally high volume of
resources, energy or data; and
(B) is located on a private energy campus for the purpose of receiving
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electric and other energy services that are provided by the electric
generation, energy storage and ancillary facilities that are located on such
private energy campus.
Sec. 2. 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
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
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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) any person or entity that owns or operates a private energy
campus as defined in section 1, 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
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.
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Sec. 3. 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 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 any activity of any person or entity that owns or operates a private
energy campus as defined in section 1, 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 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 does not include electric energy used
for heating, lighting, air conditioning and office needs of the buildings at a
generating plant site.
Sec. 4. K.S.A. 2025 Supp. 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
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HB 2664 7
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. "Distributed energy system" does
not include a private energy campus as defined in section 1, and
amendments thereto, or any of the electric generation, energy storage or
ancillary facilities located on such property.
(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 otherwise provided in this section, every utility that
provides retail electric service in this state shall enter into a contract for
parallel generation service with any person who is a customer in good
standing with such utility that authorizes such customer to attach or
connect to the utility's delivery and metering system a listed device for the
purpose of exporting excess electrical power generated by such customer's
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HB 2664 8
distributed energy system to the utility's system. No such device shall
cause damage to the public 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:
(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 contract for parallel generation service shall include
provisions relating to fair and equitable compensation for energy 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
avoided cost.
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HB 2664 9
(2) A utility shall credit such compensation to the customer's account.
(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.
(e) A customer-generator of any investor-owned utility shall have the
option of entering into a contract pursuant to this section or utilizing the
net metering and easy connection act. The customer-generator shall
exercise the option in writing, filed with the utility.
(f) The following terms and conditions shall apply to contracts for
parallel generation service:
(1) The utility shall furnish, own and maintain, at the utility's
expense, all necessary meters and associated equipment utilized for
billing;
(2) the utility may install, at the utility's expense, load research meters
and equipment to monitor customer generation and load. The customer
shall provide, at no expense to the utility, a suitable location for such
meters and equipment;
(3) for the purposes of 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;
(4) the customer shall furnish, install, operate and maintain in good
order and repair, at the customer's expense, a listed device that is suitable
for the operation of the customer's distributed energy system in parallel
with the utility's system.;
(5) the utility may install, own and maintain a disconnecting device
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HB 2664 10
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;
(7) the customer shall notify the utility prior to the initial energizing
and start-up testing of the customer's distributed energy system;
(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 or
inadequate maintenance of the distributed energy system;
(F) the customer fails to remit payment to the utility for any amounts
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HB 2664 11
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
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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 export capacity of additional distributed
energy systems to be connected to the utility's system due to the capacity
of the distribution line to which such distributed energy system will be
connected.
(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.
(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
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(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.
(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 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.
(2) In any case where the customer and 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 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.
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(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.
(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:
(A) Net energy cost savings will accrue to the school from such
renewable generation over a 20-year period; or
(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.
(p) Nothing 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.
(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 K.S.A. 66-1264(b)(1), and
amendments thereto.
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Sec. 5. K.S.A. 2025 Supp. 66-1264 is hereby amended to read as
follows: 66-1264. As used in the net metering and easy connection act:
(a) "Commission" means the state corporation commission.
(b) (1) "Customer-generator" means the owner or operator of a net
metered facility that:
(1)(A) Is powered by a renewable energy resource;
(2)(B) is located on a premises owned, operated, leased or otherwise
controlled by the customer-generator;
(3)(C) is interconnected and operates in parallel phase and
synchronization with an affected utility and is in compliance with the
standards established by the affected utility;
(4)(D) is intended primarily to offset part or all of the customer-
generator's own electrical energy requirements such that the customer-
generator will fully consume the energy output or will deliver the
remaining energy output and all other services to the utility; and
(5)(E) contains an underwriter laboratories listed mechanism,
approved by the utility, that automatically disables the unit and interrupts
the flow of electricity back onto the utility's electricity lines in the event
that service to the customer-generator is interrupted.
(2) "Customer-generator" does not include any person or entity that
owns or operates a private energy campus as defined in section 1, and
amendments thereto, or the electric generation, energy storage or
ancillary facilities located on such property.
(c) "Export" means power that flows from a customer-generator's
electrical system through a customer's billing meter and onto the utility's
electricity lines.
(d) "Generating capacity" means the maximum amount of alternating
current power that a customer generator's net metered system can produce.
(e) "Peak demand" means the same as defined in K.S.A. 66-1257, and
amendments thereto.
(f) "Permission to operate" means the operational date of the
customer-generator's net metered facility.
(g) "Renewable energy resources" means the same as defined in
K.S.A. 66-1257, and amendments thereto.
(h) "Supplied" means power that flows from the utility's electricity
lines through a customer's billing meter and into a customer-generator's
electrical system.
(i) "Utility" means investor-owned electric utility.
(j) "Witness test" means a representative of the utility is on-site to
measure or verify a specific setting or operational condition.
Sec. 6. K.S.A. 66-1,170 and K.S.A. 2025 Supp. 66-104, 66-1,184 and
66-1264 are hereby repealed.
Sec. 7. This act shall take effect and be in force from and after its
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publication in the statute book.1