Extending the expiration date for provisions that authorize an electric utility to not offer parallel generation service to certain large load customers and exempt certain large load customers from the determination of the utility's peak demand.

SENATE BILL No. 92
AN ACT concerning electric public utilities; relating to parallel generation; extending the
expiration date for provisions that authorize a utility to not offer parallel generation
service to certain large load customers and exempt certain large load customers from
the determination of a utility's peak demand; amending K.S.A. 2025 Supp. 66-1,184
and repealing the existing section.
Be it enacted by the Legislature of the State of Kansas:
Section 1. 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
devices and supporting facilities that are capable of feeding excess
electric power generated by a customer's energy producing system into
the utility's system, such that all energy output and all other services
will be fully consumed by the customer or the utility.
(3) "Export" means power that flows from a customer's electrical
system through such customer's billing meter and onto the utility's
electricity lines. "Export" includes the sum of power on all phase
conductors.
(4) "Interconnected" means a listed system that is designed to
export power and attached or connected on the customer's side of the
retail meter at the customer's delivery point.
(5) "Listed" means that the device or equipment has been tested
and certified to meet the institute of electrical and electronics engineers
safety standards that specifically pertain to the intended function of the
device or equipment.
(6) "Locational marginal price" means the hourly average market
price of alternating current energy per kilowatt hour established by the
applicable locational marginal price pricing node of the southwest
power pool.
(7) "Monthly system average cost of energy per kilowatt hour"
means the sum of all volumetric costs incurred by an electric utility
during a calendar month or similar billing period as billed to the utility
by generation and transmission providers and any volumetric
generation costs incurred by the utility to generate energy divided by
the total amount of retail kilowatt-hours that the utility sold in such
month or billing period.
(8) "Permission to operate" means the operational date of the
customer's distributed energy system as determined by the utility.
(9) "Utility" means any electric public utility as defined in K.S.A.
66-101a, and amendments thereto, cooperative as defined in K.S.A. 17-
4603, and amendments thereto, electric utility owned by one or more
such cooperatives, nonstock member-owned electric cooperative
corporation incorporated in this state or municipally owned or operated
electric utility.
(10) "Witness test" means an authorized representative of the
electric utility who measures or verifies a specific setting or operational
condition.
(b) Except as 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 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.
SENATE BILL No. 92—page 2
(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.
(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
SENATE BILL No. 92—page 3
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 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
SENATE BILL No. 92—page 4
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 owed, including, but not limited to, amounts invoiced;
(G) the customer does not comply with the obligations of the
interconnection agreement, except that, if such noncompliance is not an
emergency situation, the utility shall give a customer 90 days to cure
the noncompliance prior to disconnecting and isolating the distributed
energy system; or
(H) such disconnection is necessary due to emergency or
maintenance purposes. In the event that the utility disconnects the
distributed energy system for maintenance, the utility shall make
reasonable efforts to reconnect the distributed generating system as
soon as practicable; and
(11) the customer shall retain the authority to temporarily
disconnect such customer's distributed energy system from the utility's
system at any time. Any such temporary disconnection shall not be
construed as a customer's termination of the interconnection agreement
without an express action to terminate such agreement pursuant to the
terms and conditions of the agreement.
(g) The export capacity of a customer's renewable energy system
shall be appropriately sized for such customer's anticipated electric load
as follows:
(1) (A) Divide the customer's historic consumption in kilowatt-
hours for the previous 12-month period by 8,760 and divide such
quotient by a capacity factor of:
(i) 0.144 when such customer is in the service territory of an
investor-owned utility; and
(ii) 0.288 when such customer is in the service territory of a
cooperative as defined in K.S.A. 17-4603, and amendments thereto, an
electric utility owned by one or more of such cooperatives, a nonstock
member-owned electric cooperative corporation incorporated in this
state or a municipally owned or operated electric utility; or
(B) if the customer does not have historic consumption data that
adequately reflects the customer's consumption at such premises, the
customer's historic consumption for the previous 12-month period shall
be 7.15 kilowatt-hours per square foot of conditioned space; and
(2) round the amount determined pursuant to paragraph (1) up to
the nearest one kilowatt alternating current power increment.
(h) (1) Except as provided in subsection (i), each utility shall,
make parallel generation service available to customers who are in
good standing with the utility, on a first-come, first-served basis, until
the utility's aggregate export capacity from all distributed energy
systems, including systems that are subject to a parallel generation
service tariff established pursuant to this section and systems that are
subject to a net metering tariff that was either voluntarily established by
the utility or pursuant to K.S.A. 66-1263 et seq., and amendments
thereto, equals or exceeds the following:
(A) Commencing on July 1, 2025, 6% of the utility's historic peak
demand;
SENATE BILL No. 92—page 5
(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
2027.
(j) For any customer with a distributed energy system:
(1) The customer shall own and maintain any necessary export-
limiting device;
(2) protections shall be in place to restrict the export-limiting
device settings to qualified persons;
(3) the utility shall have the option to require a witness test of the
export-limiting device's functions or settings prior to granting
permission to operate and at any time while the distributed energy
system is connected to the utility's system;
(4) the export capacity of the system shall not be increased
without prior approval of the utility;
(5) the customer shall allow the utility to perform periodic witness
tests of the export-limiting device's functions or settings upon request;
(6) if the export-limiting device's functions or settings are
incorrect or if the device fails to limit the export of power below the
designed export capacity for more than 15 minutes in any single event,
the customer shall cease operation of the system until repair or
reprogramming of the export-limiting device is completed. For
purposes of this subparagraph, the utility may require and conduct a
witness test prior to authorizing the customer to resume operation of the
system; and
(7) the utility shall not restrict the brand or model of the export-
limiting device if the device is approved by the manufacturer of a listed
distributed energy system or is listed to perform such operations in
conjunction with the customer's system.
(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
SENATE BILL No. 92—page 6
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.
(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
SENATE BILL No. 92—page 7
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.
Sec. 2. K.S.A. 2025 Supp. 66-1,184 is hereby repealed.
Sec. 3. This act shall take effect and be in force from and after its
publication in the statute book.
I hereby certify that the above BILL originated in the
SENATE, and passed that body
__________________________
SENATE adopted
Conference Committee Report ________________
_________________________
President of the Senate.
_________________________
Secretary of the Senate.

Passed the HOUSE
as amended _________________________
HOUSE adopted
Conference Committee Report ________________
_________________________
Speaker of the House.
_________________________
Chief Clerk of the House.
APPROVED _____________________________
_________________________
Governor.