Exempting any electric public utility that is a not-for-profit wholly owned subsidiary of an electric cooperative public utility from the jurisdiction of the state corporation commission.

SENATE BILL No. 348
AN ACT concerning the state corporation commission; relating to the jurisdiction of the
commission over electric public utilities; exempting any electric public utility that is
a not-for-profit wholly owned subsidiary of an electric cooperative public utility from
the jurisdiction of the state corporation commission; establishing certain exceptions;
authorizing the customers of such subsidiary utility to petition the commission to
investigate the rates of such utility; authorizing the commission to order new rates if
the commission finds that such rates are found to be unjust, unreasonable, unjustly
discriminatory or unduly preferential; requiring the customers of such subsidiary
utility to receive notice of and be provided access to meetings concerning electric
rates; providing an option for the customers of such subsidiary utility to elect to
terminate such exemption.
Be it enacted by the Legislature of the State of Kansas:
Section 1. (a) Except as otherwise provided in this section, an
electric public utility shall not be subject to the jurisdiction, regulation,
supervision and control of the state corporation commission if such
electric public utility:
(1) Is a not-for-profit wholly owned subsidiary of a corporation
organized under the electric cooperative act, K.S.A. 17-4601 et seq.,
and amendments thereto; and
(2) provides retail electric service to customers in this state.
(b) (1) Notwithstanding an electric public utility's exemption from
the jurisdiction of the state corporation commission pursuant to this
section, the commission shall investigate all rates, joint rates, tolls,
charges and exactions, classifications and schedules of rates of such
electric public utility if there is filed with the commission, not more
than one year after a change in such utility's rates, joint rates, tolls,
charges and exactions, classifications or schedules of rates, a petition
signed by not less than 5% of such electric public utility's customers or
3% of the electric public utility's customers from any one rate class. If,
after investigation, the commission finds that such rates, joint rates,
tolls, charges or exactions, classifications or schedules of rates are
unjust, unreasonable, unjustly discriminatory or unduly preferential, the
commission shall have the power to fix and order substitutions to such
rates, joint rates, tolls, charges and exactions, classifications or
schedules of rates as are just and reasonable.
(2) The rates, joint rates, tolls, charges and exactions,
classifications or schedules of rates under investigation shall remain in
effect subject to change or refund pending the state corporation
commission's investigation and final order.
(3) Any customer of the electric public utility that seeks to petition
the commission pursuant to subsection (b)(1) may request from such
utility the names, addresses and rate classifications of all the utility's
customers or the utility's customers from any one or more rate classes.
A utility, within 21 days after receipt of such a request, shall furnish to
such customer the requested names, addresses and rate classifications
and may require such customer to pay the reasonable costs thereof.
(c) An electric public utility exempt from the jurisdiction of the
state corporation commission pursuant to this section shall provide not
less than 10 days' notice of the time and place of any meeting of the
utility or the utility's parent cooperative at which rate changes are to be
discussed and voted on. Such notice shall be given to all retail electric
customers of such utility. If the meeting is held by the utility's parent
cooperative, the parent cooperative shall open such meeting to the
customers of such utility. Violations of this subsection shall be subject
to civil penalties and enforcement in the same manner as provided by
K.S.A. 75-4320 and 75-4320a, and amendments thereto, for violations
of K.S.A. 75-4317 et seq., and amendments thereto.
(d) An electric public utility exempt from the jurisdiction of the
state corporation commission pursuant to this section shall maintain a
schedule of rates and charges at the utility's headquarters and make
SENATE BILL No. 348—page 2
copies of such schedule of rates and charges available to the general
public during regular business hours. If such a utility fails, neglects or
refuses to maintain copies of such schedule of rates and charges
pursuant to this subsection, the commission may impose a civil penalty
of not more than $500 for each such violation.
(e) Notwithstanding any provision of law to the contrary, an
electric public utility exempt from the jurisdiction of the state
corporation commission pursuant to this section shall not issue any
dividend payments, stock repurchase or direct cash payment that is
meant to transfer the equity of the electric public utility to the utility's
parent cooperative without the approval of the commission.
(f) Notwithstanding any provision of law to the contrary, an
electric public utility exempt from the jurisdiction of the state
corporation commission pursuant to this section shall be subject to the
provisions of the renewable energy standards act.
(g) Nothing in this section shall be construed to affect the
authority of the state corporation commission, as otherwise provided by
law, over an electric public utility exempt from the jurisdiction of the
commission pursuant to this section, including, but not limited to, the
authority vested in the commission with respect to:
(1) Service territory pursuant to K.S.A. 66-1,170 et seq., and
amendments thereto;
(2) certificates of public convenience and necessity pursuant to
K.S.A. 66-131, and amendments thereto;
(3) charges, fees or tariffs for transmission services, except any
such charges, fees or tariffs for transmission services that are approved
by the federal energy regulatory commission and recovered through an
open access transmission tariff of a regional transmission organization;
(4) sales of power for resale, other than sales between:
(A) An electric public utility that does not provide retail electric
service in the state and is owned and governed by four or more
corporations organized under the electric cooperative act, K.S.A. 17-
4601 et seq., and amendments thereto, one of which corporations shall
be the parent corporation of the electric public utility exempt from the
jurisdiction of the state corporation commission pursuant to this
section; and
(B) the electric public utility that is exempt from the jurisdiction
of the state corporation commission pursuant to this section;
(5) wire stringing pursuant to K.S.A. 66-183, and amendments
thereto;
(6) transmission line siting pursuant to K.S.A. 66-1,177 et seq.,
and amendments thereto; or
(7) petitioning for relief pursuant to K.S.A. 66-144, and
amendments thereto.
(h) (1) Notwithstanding the provisions of this section, the
customers of an electric public utility that is exempt from the
jurisdiction of the state corporation commission pursuant to this section
may elect to terminate such utility's exemption by filing a petition
requesting an election to terminate the utility's exemption pursuant to
this section. Such petition shall be signed by not less than 10% of the
customers of such exempt utility and filed with the board of trustees of
the utility's parent cooperative. Notice of the proposition to terminate
the utility's exemption pursuant to this section shall be presented to a
meeting of the members of the parent cooperative, which shall be open
to the customers of the exempt utility and held at a location in the
service territory of such exempt utility. The parent cooperative shall
provide written notice to the members of the parent cooperative and the
customers of such exempt utility not less than 21 nor more than 45 days
before the date of the meeting. Such written notice shall include the
SENATE BILL No. 348—page 3
proposition to terminate such utility's exemption pursuant to this
section and the time and location of the meeting.
(2) If the proposition to terminate the utility's exemption pursuant
to this section is approved by the affirmative vote of not less than a
majority of the customers of such exempt utility voting on the
proposition, the parent cooperative shall notify the state corporation
commission in writing of the results within 10 days after the date of the
election. V oting on the proposition to terminate the utility's exemption
pursuant to this section shall be by mail ballot. An election pursuant to
this subsection may be held not more than once every two years.
Sec. 2. This act shall take effect and be in force from and after its
publication in the Kansas register.
I hereby certify that the above BILL originated in the
SENATE, and passed that body
_________________________
_________________________
President of the Senate.
_________________________
Secretary of the Senate.

Passed the HOUSE ________________________
_________________________
Speaker of the House.
_________________________
Chief Clerk of the House.
APPROVED ____________________________
_________________________
Governor.