SB 207--Am. by HCW
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[As Amended by House Committee of the
Whole]
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As Amended by House Committee
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As Amended by Senate Committee
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Session of 1997
SENATE BILL No. 207
By Committee on Utilities
2-5
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14 AN ACT concerning the Kansas corporation commission; investigations
15 and complaints; hearings; [granting of exemptions from certain
16 filing requirements; issuance of certain certificates; duties and
17 authority relating to energy efficiency standards for buildings;]
18 [changes in rates and schedules of public utilities and common
19 carriers;] [regulation of natural gas gathering systems and serv-
20 ices;] amending K.S.A. 66-1,191 and 66-1,234 and K.S.A. 1996 Supp.
21 [55-150,] 66-101d, 66-101e, [66-117,] 66-125, 66-1,192, 66-1,204,
22 66-1,205, 66-1,219, 66-1,220 and 66-1,235 and repealing the existing
23 sections; also repealing K.S.A. 66-131a.
24
25 Be it enacted by the Legislature of the State of Kansas:
26 Section 1. K.S.A. 1996 Supp. 66-101d is hereby amended to read as
27 follows: 66-101d. It shall be the duty of the commission, either upon
28 complaint or upon its own initiative, to The commission, upon its own
29 initiative, may investigate all schedules of rates and rules and regulations
30 of electric public utilities. If after investigation and hearing the commis-
31 sion finds that such rates or rules and regulations are unjust, unreasona-
32 ble, unjustly discriminatory or unduly preferential, the commission shall
33 have the power to establish and order substituted therefor such rates and
34 such rules and regulations as are just and reasonable.
35 If after investigation and hearing it is found that any regulation, meas-
36 urement, practice, act or service complained of is unjust, unreasonable,
37 unreasonably inefficient or insufficient, unduly preferential, unjustly dis-
38 criminatory, or otherwise in violation of this act or of the orders of the
39 commission, or if it is found that any service is inadequate or that any
40 reasonable service cannot be obtained, the commission shall have the
41 power to substitute therefor such other regulations, measurements, prac-
42 tices, service or acts, and to make such order respecting any such changes
43 in such regulations, measurements, practices, service or acts as are just
SB 207--Am. by HCW
2
1 and reasonable. When, in the judgment of the commission, public ne-
2 cessity and convenience require, the commission shall have the power to
3 establish just and reasonable concentration or other special rates, charges
4 or privileges, but all such rates, charges and privileges shall be open to
5 all users of a like kind of service under similar circumstances and condi-
6 tions.
7 Hearings shall be conducted in accordance with the provisions of the
8 Kansas administrative procedure act.
9 Hearings shall be conducted in accordance with the provisions of
10 the Kansas administrative procedure act, unless, in the case of a
11 general investigation, for good cause, the commission orders oth-
12 erwise.
13 Sec. 2. K.S.A. 1996 Supp. 66-101e is hereby amended to read as
14 follows: 66-101e. Upon a complaint in writing made against any electric
15 public utility governed by this act that any of the rates or rules and reg-
16 ulations of such electric public utility are in any respect unreasonable,
17 unfair, unjust, unjustly discriminatory or unduly preferential, or both, or
18 that any regulation, practice or act whatsoever affecting or relating to any
19 service performed or to be performed by such electric public utility for
20 the public, is in any respect unreasonable, unfair, unjust, unreasonably
21 inefficient or insufficient, unjustly discriminatory or unduly preferential,
22 or that any service performed or to be performed by such electric public
23 utility for the public is unreasonably inadequate, inefficient, unduly in-
24 sufficient or cannot be obtained, the commission shall may proceed, with
25 or without notice, to make such investigation as it deems necessary.
26 The commission may, upon its own motion, and without any complaint
27 being made, proceed to make such investigation, but No order changing
28 such rates, rules and regulations, practices or acts complained of shall be
29 made or entered by the commission without a formal public hearing, of
30 which due notice shall be given by the commission to such electric public
31 utility or to such complainant or complainants, if any, in accordance with
32 the provisions of the Kansas administrative procedure act. Any public
33 investigation or hearing which the commission shall have power to make
34 or to hold may be made or held before any one or more commissioners.
35 All investigations, hearings, decisions and orders made by a commissioner
36 shall be deemed the investigations, hearings, decisions and orders of the
37 commission, when approved by the commission.
38 The commission shall have power to require electric public utilities to
39 make such improvements and do such acts as are or may be required by
40 law to be done by any such electric public utility.
41 Sec. 3. K.S.A. 66-1,191 is hereby amended to read as follows: 66-
42 1,191. It shall be the duty of the commission, either upon complaint or
43 upon its own initiative, to The commission, upon its own initiative, may
SB 207--Am. by HCW
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1 investigate all rates, joint rates, tolls, charges and exactions, classifications
2 or schedules of rates or joint rates and rules and regulations of telecom-
3 munications public utilities. If after full hearing and investigation the
4 commission finds that such rates, joint rates, tolls, charges or exactions,
5 classifications or schedules of rates or joint rates or rules and regulations
6 are unjust, unreasonable, unjustly discriminatory or unduly preferential,
7 the commission shall have the power to fix and order substituted therefor
8 such rates, tolls, charges, exactions, classifications or schedules of rates or
9 joint rates and such rules and regulations as are just and reasonable.
10 If upon any investigation it is found that any regulation, measurement,
11 practice, act or service complained of is unjust, unreasonable, unreason-
12 ably inefficient or insufficient, unduly preferential, unjustly discrimina-
13 tory, or otherwise in violation of this act or of the orders of the commis-
14 sion, or if it is found that any service is inadequate or that any reasonable
15 service cannot be obtained, the commission may substitute therefor such
16 other regulations, measurements, practices, service or acts, and make
17 such order respecting any such changes in such regulations, measure-
18 ments, practices, service or acts as are just and reasonable. When, in the
19 judgment of the commission, public necessity and convenience require,
20 the commission may establish just and reasonable concentration or other
21 special rates, charges or privileges, but all such rates, charges and privi-
22 leges shall be open to all users of a like kind of service under similar
23 circumstances and conditions Hearings shall be conducted in accor-
24 dance with the provisions of the Kansas administrative procedure
25 act, unless, in the case of a general investigation, for good cause,
26 the commission orders otherwise.
27 Sec. 4. K.S.A. 1996 Supp. 66-1,192 is hereby amended to read as
28 follows: 66-1,192. (a) Upon a complaint in writing made against any tel-
29 ecommunications public utility governed by this act, by any mercantile,
30 agricultural or manufacturing organization or society, or by any body pol-
31 itic or municipal organization, or by any taxpayer, firm, corporation or
32 association, that any of the rates or joint rates, tolls, charges, rules, reg-
33 ulations, classifications or schedules of such telecommunications public
34 utility are in any respect unreasonable, unfair, unjust, unjustly discrimi-
35 natory or unduly preferential, or both, or that any regulation, practice or
36 act whatsoever affecting or relating to any service performed or to be
37 performed by such telecommunications public utility for the public, is in
38 any respect unreasonable, unfair, unjust, unreasonably inefficient or in-
39 sufficient, unjustly discriminatory or unduly preferential, or that any serv-
40 ice performed or to be performed by such telecommunications public
41 utility for the public is unreasonably inadequate, inefficient, unduly in-
42 sufficient or cannot be obtained, the commission shall may proceed, with
43 or without notice, to make such investigation as it deems necessary.
SB 207--Am. by HCW
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1 The commission may, upon its own motion, and without any complaint
2 being made, proceed to make such investigation, but No order changing
3 such rates, joint rates, tolls, charges, rules, regulations and classifications,
4 schedules, practices or acts complained of shall be made or entered by
5 the commission without a formal public hearing in accordance with the
6 provisions of the Kansas administrative procedure act, of which due notice
7 shall be given by the commission to such telecommunications public util-
8 ity or to such complainant or complainants, if any. Any public investigation
9 or hearing which the commission shall have power to make or to hold
10 may be made or held before any one or more commissioners. All inves-
11 tigations, hearings, decisions and orders made by a commissioner shall be
12 deemed the investigations, hearings, decisions and orders of the com-
13 mission, when approved by the commission.
14 (b) The commission shall have power to require telecommunications
15 public utilities to make such improvements and do such acts as are or
16 may be required by law to be done by any such telecommunications
17 public utility.
18 Sec. 5. K.S.A. 1996 Supp. 66-1,204 is hereby amended to read as
19 follows: 66-1,204. It shall be the duty of the commission, either upon
20 complaint or upon its own initiative, to The commission, upon its own
21 initiative, may investigate all schedules of rates and rules and regulations
22 of natural gas public utilities. If after investigation and hearing the com-
23 mission finds that such rates or rules and regulations are unjust, unrea-
24 sonable, unjustly discriminatory or unduly preferential, the commission
25 shall have the power to establish and order substituted therefor such rates
26 and such rules and regulations as are just and reasonable.
27 If after investigation and hearing it is found that any regulation, meas-
28 urement, practice, act or service complained of is unjust, unreasonable,
29 unreasonably inefficient or insufficient, unduly preferential, unjustly dis-
30 criminatory, or otherwise in violation of this act or of the orders of the
31 commission, or if it is found that any service is inadequate or that any
32 reasonable service cannot be obtained, the commission may substitute
33 therefor such other regulations, measurements, practices, service or acts,
34 and make such order respecting any such changes in such regulations,
35 measurements, practices, service or acts as are just and reasonable. When,
36 in the judgment of the commission, public necessity and convenience
37 require, the commission may establish just and reasonable concentration
38 or other special rates, charges or privileges, but all such rates, charges
39 and privileges shall be open to all users of a like kind of service under
40 similar circumstances and conditions. Hearings shall be conducted in
41 accordance with the provisions of the Kansas administrative pro-
42 cedure act, unless, in the case of a general investigation, for good
43 cause, the commission orders otherwise.
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1 Sec. 6. K.S.A. 1996 Supp. 66-1,205 is hereby amended to read as
2 follows: 66-1,205. (a) Upon a complaint in writing made against any nat-
3 ural gas public utility governed by this act that any rates or rules and
4 regulations of such natural gas public utility are in any respect unreason-
5 able, unfair, unjust, unjustly discriminatory or unduly preferential, or
6 both, or that any rule and regulation, practice or act whatsoever affecting
7 or relating to any service performed or to be performed by such natural
8 gas public utility for the public, is in any respect unreasonable, unfair,
9 unjust, unreasonably inefficient or insufficient, unjustly discriminatory or
10 unduly preferential, or that any service performed or to be performed by
11 such natural gas public utility for the public is unreasonably inadequate,
12 inefficient, unduly insufficient or cannot be obtained, the commission
13 shall may proceed, with or without notice, to make such investigation as
14 it deems necessary.
15 The commission, upon its own motion and without any complaint being
16 made, may proceed to make such investigation, but No order changing
17 such rates, rules and regulations, practices or acts complained of shall be
18 made or entered by the commission without a formal public hearing in
19 accordance with the provisions of the Kansas administrative procedure
20 act, of which due notice shall be given by the commission to such natural
21 gas public utility or to such complainant or complainants, if any. Any
22 public investigation or hearing which the commission shall have power to
23 make or to hold may be made or held before any one or more commis-
24 sioners. All investigations, hearings, decisions and orders made by a com-
25 missioner shall be deemed the investigations, hearings, decisions and or-
26 ders of the commission, when approved by the commission.
27 (b) The commission shall have power to require natural gas public
28 utilities to make such improvements and do such acts as are or may be
29 required by law to be done by any such natural gas public utility.
30 Sec. 7. K.S.A. 1996 Supp. 66-1,219 is hereby amended to read as
31 follows: 66-1,219. It shall be the duty of the commission, either upon
32 complaint or upon its own initiative, to The commission, upon its own
33 initiative, may investigate all rates, joint rates, tolls, charges and exactions,
34 classifications or schedules of rates or joint rates and rules and regulations
35 of common carriers, except a motor carrier holding a certificate of public
36 service. If after full hearing and investigation the commission finds that
37 such rates, joint rates, tolls, charges or exactions, classifications or sched-
38 ules of rates or joint rates or rules and regulations are unjust, unreason-
39 able, unjustly discriminatory or unduly preferential, the commission shall
40 have the power to fix and order substituted therefor such rates, tolls,
41 charges, exactions, classifications or schedules of rates or joint rates and
42 such rules and regulations as are just and reasonable.
43 If upon any investigation it is found that any such regulation, measure-
SB 207--Am. by HCW
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1 ment, practice, act or service complained of is unjust, unreasonable, un-
2 reasonably inefficient or insufficient, unduly preferential, unjustly dis-
3 criminatory, or otherwise in violation of this act or of the orders of the
4 commission, or if it is found that any service is inadequate or that any
5 reasonable service cannot be obtained, the commission may substitute
6 therefor such other regulations, measurements, practices, service or acts,
7 and make such order respecting any such changes in such regulations,
8 measurements, practices, service or acts as are just and reasonable. When,
9 in the judgment of the commission, public necessity and convenience
10 require, the commission may establish just and reasonable concentration
11 or other special rates, charges or privileges, but all such rates, charges
12 and privileges shall be open to all users of a like kind of service under
13 similar circumstances and conditions. Hearings shall be conducted in
14 accordance with the provisions of the Kansas administrative pro-
15 cedure act, unless, in the case of a general investigation, for good
16 cause, the commission orders otherwise.
17 Sec. 8. K.S.A. 1996 Supp. 66-1,220 is hereby amended to read as
18 follows: 66-1,220. (a) Upon a complaint in writing made against any com-
19 mon carrier, except a motor carrier holding a certificate of public service,
20 governed by this act, by any mercantile, agricultural or manufacturing
21 organization or society, or by any body politic or municipal organization,
22 or by any taxpayer, firm, corporation or association, that any of the rates
23 or joint rates, fares, tolls, charges, rules, regulations, classifications or
24 schedules of such common carrier are in any respect unreasonable, unfair,
25 unjust, unjustly discriminatory or unduly preferential, or both, or that any
26 regulation, practice or act whatsoever affecting or relating to any service
27 performed or to be performed by such common carrier for the public, is
28 in any respect unreasonable, unfair, unjust, unreasonably inefficient or
29 insufficient, unjustly discriminatory or unduly preferential, or that any
30 service performed or to be performed by such common carrier for the
31 public is unreasonably inadequate, inefficient, unduly insufficient or can-
32 not be obtained, the commission shall may proceed, with or without
33 notice, to make such investigation as it deems necessary.
34 The commission, upon its own motion, and without any complaint be-
35 ing made, may proceed to make such investigation, but No order changing
36 such rates, joint rates, tolls, charges, rules, regulations and classifications,
37 schedules, practices or acts complained of shall be made or entered by
38 the commission without a formal public hearing in accordance with the
39 provisions of the Kansas administrative procedure act, of which due notice
40 shall be given by the commission to such common carrier or to such
41 complainant or complainants, if any. Any public investigation or hearing
42 which the commission shall have power to make or to hold may be made
43 or held before any one or more commissioners. All investigations, hear-
SB 207--Am. by HCW
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1 ings, decisions and orders made by a commissioner shall be deemed the
2 investigations, hearings, decisions and orders of the commission, when
3 approved by the commission.
4 (b) The commission shall have power to require common carriers,
5 except a motor carrier holding a certificate of public service, to make such
6 improvements and do such acts as are or may be required by law to be
7 done by any such common carrier.
8 Sec. 9. K.S.A. 66-1,234 is hereby amended to read as follows: 66-
9 1,234. It shall be the duty of the commission, either upon complaint or
10 upon its own initiative, to The commission, upon its own initiative, may
11 investigate all rates, joint rates, tolls, charges and exactions, classifications
12 or schedules of rates or joint rates and rules and regulations of miscella-
13 neous public utilities. If after full hearing and investigation the commis-
14 sion finds that such rates, joint rates, tolls, charges or exactions, classifi-
15 cations or schedules of rates or joint rates or rules and regulations are
16 unjust, unreasonable, unjustly discriminatory or unduly preferential, the
17 commission shall have the power to fix and order substituted therefor
18 such rates, tolls, charges, exactions, classifications or schedules of rates or
19 joint rates and such rules and regulations as are just and reasonable.
20 If upon any investigation it is found that any regulation, measurement,
21 practice, act or service complained of is unjust, unreasonable, unreason-
22 ably inefficient or insufficient, unduly preferential, unjustly discrimina-
23 tory, or otherwise in violation of this act or of the orders of the commis-
24 sion, or if it is found that any service is inadequate or that any reasonable
25 service cannot be obtained, the commission may substitute therefor such
26 other regulations, measurements, practices, service or acts, and make
27 such order respecting any such changes in such regulations, measure-
28 ments, practices, service or acts as are just and reasonable. When, in the
29 judgment of the commission, public necessity and convenience require,
30 the commission may establish just and reasonable concentration, com-
31 modity, transit or other special rates, charges or privileges, but all such
32 rates, charges and privileges shall be open to all users of a like kind of
33 service under similar circumstances and conditions. Hearings shall be
34 conducted in accordance with the provisions of the Kansas admin-
35 istrative procedure act, unless, in the case of a general investiga-
36 tion, for good cause, the commission orders otherwise.
37 Sec. 10. K.S.A. 1996 Supp. 66-1,235 is hereby amended to read as
38 follows: 66-1,235. (a) Upon a complaint in writing made against any mis-
39 cellaneous public utility governed by this act, by any mercantile, agricul-
40 tural or manufacturing organization or society, or by any body politic or
41 municipal organization, or by any taxpayer, firm, corporation or associa-
42 tion, that any of the rates or joint rates, tolls, charges, rules, regulations,
43 classifications or schedules of such miscellaneous public utility are in any
SB 207--Am. by HCW
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1 respect unreasonable, unfair, unjust, unjustly discriminatory or unduly
2 preferential, or both, or that any regulation, practice or act whatsoever
3 affecting or relating to any service performed or to be performed by such
4 miscellaneous public utility for the public, is in any respect unreasonable,
5 unfair, unjust, unreasonably inefficient or insufficient, unjustly discrimi-
6 natory or unduly preferential, or that any service performed or to be
7 performed by such miscellaneous public utility for the public is unrea-
8 sonably inadequate, inefficient, unduly insufficient or cannot be obtained,
9 the commission shall may proceed, with or without notice, to make such
10 investigation as it deems necessary.
11 The commission may, upon its own motion, and without any complaint
12 being made, proceed to make such investigation, but No order changing
13 such rates, joint rates, fares, tolls, charges, rules, regulations and classi-
14 fications, schedules, practices or acts complained of shall be made or
15 entered by the commission without a formal public hearing in accordance
16 with the provisions of the Kansas administrative procedure act, of which
17 due notice shall be given by the commission to such miscellaneous public
18 utility or to such complainant or complainants, if any. Any public inves-
19 tigation or hearing which the commission shall have power to make or to
20 hold may be made or held before any one or more commissioners. All
21 investigations, hearings, decisions and orders made by a commissioner
22 shall be deemed the investigations, hearings, decisions and orders of the
23 commission, when approved by the commission.
24 (b) The commission shall have power to require miscellaneous public
25 utilities to make such improvements and do such acts as are or may be
26 required by law to be done by any such miscellaneous public utility.
27 New Sec. 11. The state corporation commission shall have the
28 authority to exempt any public utility or common carrier over
29 which the commission has jurisdiction from the requirements of
30 publishing and filing with the commission copies of schedules of
31 rates, joint rates, tolls, charges, classifications and divisions of rates
32 affecting Kansas customers and charged for any service that is not
33 subject to price regulation. After a public utility or common carrier
34 service has been exempted from such requirements, the commis-
35 sion may require such public utility or common carrier to publish
36 and file with the commission tariffs for such service when neces-
37 sary to protect consumers from fraudulent business practices or
38 practices that are inconsistent with the public interest, conven-
39 ience and necessity or when the commission otherwise deems nec-
40 essary.
41 Sec. 12. K.S.A. 1996 Supp. 66-125 is hereby amended to read
42 as follows: 66-125. (a) Any investor-owned electric public utility
43 incorporated in the state of Kansas having a total capitalization in
SB 207--Am. by HCW
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1 excess of $1 billion dollars may issue stocks, certificates, bonds, notes
2 or other evidences of indebtedness, payable at periods of more
3 than 12 months after the date thereof, when necessary for the ac-
4 quisition of property, for the purpose of carrying out its corporate
5 powers, the construction, completion, extension or improvements
6 of its facilities, for the improvements or maintenance of its service,
7 for the discharge or lawful refunding of its obligations, or for such
8 other purposes as may be authorized by law. Prior to any such
9 issuance, there shall be secured from the commission a certificate
10 stating the amount, character, purposes and terms on which such
11 stocks, certificates, bonds, notes or other evidences of indebted-
12 ness are proposed to be issued, as set out in the application for
13 such certificate. In lieu of securing a certificate from the commis-
14 sion, if the issuance requires a registration statement to be filed
15 with the securities and exchange commission or such utility obtains
16 an authorization or approval of such issuance from another state
17 or federal agency, the public utility may file with the state corpo-
18 ration commission a copy of the information filed with the secu-
19 rities and exchange commission or such other agency.
20 (b) The proceedings for obtaining such certificate from the
21 commission and the conditions of its being issued shall be as fol-
22 lows:
23 (1) In case the stocks, certificates, bonds, notes or other evi-
24 dences of indebtedness are to be issued for money only, the public
25 utility or common carrier shall file with the commission a state-
26 ment, signed and verified by the president or other chief officer
27 of the company having knowledge of the facts, showing:
28 (A) The amount and character of the proposed stocks, certifi-
29 cates, bonds, notes or other evidences of indebtedness;
30 (B) the general purposes for which they are to be issued;
31 (C) the terms on which they are to be issued;
32 (D) the total assets and liabilities of the public utility or com-
33 mon carrier; and
34 (E) that the capital sought to be secured by the issuance of such
35 stocks, certificates, bonds, notes or other evidences of indebted-
36 ness is necessary and required for such purposes and will be used
37 therefor.
38 (2) In case stocks, certificates, bonds, notes or other evidences
39 of indebtedness are to be issued partly or wholly for property or
40 services or other consideration than money, the public utility or
41 common carrier shall file with the commission a statement, signed
42 and verified by the president or other chief officer having knowl-
43 edge of the facts, showing:
SB 207--Am. by HCW
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1 (A) The amount and character of the stocks, certificates, bonds,
2 notes or other evidences of indebtedness proposed to be issued;
3 (B) the general purposes for which they are to be issued;
4 (C) a general description and an estimated value of the prop-
5 erty or services for which they are to be issued;
6 (D) the terms on which they are to be issued or exchanged;
7 (E) the amount of money, if any, to be received for the same
8 in addition to such property, services or other consideration;
9 (F) the total assets and liabilities of the public utility or com-
10 mon carrier; and
11 (G) that the capital sought to be secured by the issuance of such
12 stocks, certificates, bonds, notes or other evidences of indebted-
13 ness is necessary and required for such purposes and will be used
14 therefor.
15 (c) The commission may also require the public utility or com-
16 mon carrier to furnish such further statements of facts as may be
17 reasonable and pertinent to the inquiry. Upon full compliance by
18 the applicant with the provisions of this section the commission
19 shall forthwith issue a certificate stating the amount, character,
20 purposes and terms upon which such stocks, certificates, bonds,
21 notes or other evidences of indebtedness are proposed to be is-
22 sued, as set out in the application for such certificate. Any issue of
23 stocks, certificates, bonds, notes or other evidences of indebted-
24 ness not payable within one year, which shall be issued by such
25 public utility or common carrier contrary to the provisions of this
26 act shall be voidable by the commission, except as provided in sub-
27 section (d).
28 (d) The provisions of this section shall not apply to motor car-
29 riers, as defined in K.S.A. 66-1,108, and amendments thereto or
30 any public utility except as provided in subsection (a). Any issue of
31 stocks, certificates, bonds, notes or other evidences of indebted-
32 ness not payable within one year, which were issued by a motor
33 carrier prior to the effective date of this act without obtaining a
34 certificate from the commission shall be deemed valid.
35 New Sec. 13. (a) The American Society of Heating and Air
36 Conditioning Engineers/Illuminating Society of North America
37 1989 90-1 Standard or Code (ASHRAE/IES 90.1-89) is hereby
38 adopted as the applicable thermal efficiency standard for new
39 commercial and industrial structures in this state.
40 (b) The state corporation commission has no authority to adopt
41 or enforce energy efficiency standards for residential, commercial
42 or industrial structures.
43 New Sec. 14. (a) The [Except as provided by subsection (c),
SB 207--Am. by HCW
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1 the] person building or selling a previously unoccupied new resi-
2 dential structure shall disclose to the buyer, on a form prescribed
3 by the state corporation commission, the following information re-
4 garding the structure:
5 (1) Insulation values (R-value of insulation installed) for each
6 of the following:
7 (A) Ceiling with attic above.
8 (B) Cathedral ceiling.
9 (C) Opaque walls.
10 (D) Floors over unheated spaces.
11 (E) Floors over outside air.
12 (F) Foundation type: (i) Slab-on-grade; (ii) crawlspace; and (iii)
13 basement and percent of basement walls underground.
14 (2) Thermal properties of windows and doors for each of the
15 following:
16 (A) Entry door(s) R-value.
17 (B) Sliding door(s) R-value.
18 (C) Other exterior doors R-value.
19 (D) Garage to house door R-value.
20 (E) Window U-value (determined from NFRC rating label or
21 default table).
22 (3) HVAC equipment efficiency levels:
23 (A) Heating systems: Gas fired forced air furnace AFUE rating
24 and electric heat pump HSPF rating.
25 (B) Air conditioning systems: Electric air conditioning unit
26 SEER rating; electric heat pump air conditioning EER rating; and
27 ground source heat pump air conditioning EER rating.
28 (C) Duct insulation levels: Insulation R-value of ducts outside
29 envelope.
30 (D) Thermostat: Manual control type or automatic set-back
31 type.
32 (4) Water heating efficiency levels:
33 (A) Water heater fuel type;
34 (B) water heater capacity; and
35 (C) NAECA energy factor.
36 (b) The state corporation commission shall prescribe, by rules
37 and regulations, the form required by subsection (a) and may in-
38 clude on the form a definition of ``R-value'' to assist the buyer in
39 understanding the information contained in the form.
40 [(c) If a structure is subject to both the national manufactured
41 housing construction and safety standards act (42 U.S.C. 5403) and
42 the federal trade commission regulation on labeling and advertis-
43 ing of home insulation, 16 CFR section 460.16, both as in effect
SB 207--Am. by HCW
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1 on the effective date of this act, the builder or seller may disclose,
2 instead of the information required by subsection (a), the infor-
3 mation regarding such structure that is required to be disclosed
4 pursuant to such federal act and regulation.]
5 [Sec. 15. K.S.A. 1996 Supp. 66-117 is hereby amended to read
6 as follows: 66-117. (a) Unless the state corporation commission oth-
7 erwise orders, no common carrier or public utility over which the
8 commission has control shall make effective any changed rate,
9 joint rate, toll, charge or classification or schedule of charges, or
10 any rule or regulation or practice pertaining to the service or rates
11 of such public utility or common carrier except by filing the same
12 with the commission at least 30 days prior to the proposed effective
13 date. The commission, for good cause, may allow such changed
14 rate, joint rate, toll, charge or classification or schedule of charges,
15 or rule or regulation or practice pertaining to the service or rates
16 of any such public utility or common carrier to become effective
17 on less than 30 days' notice. If the commission allows a change to
18 become effective on less than 30 days' notice, the effective date of
19 the allowed change shall be the date established in the commission
20 order approving such change, or the date of the order if no effec-
21 tive date is otherwise established. Any such proposed change shall
22 be shown by filing with the state corporation commission a sched-
23 ule showing the changes, and such changes shall be plainly indi-
24 cated by proper reference marks in amendments or supplements
25 to existing tariffs, schedules or classifications, or in new issues
26 thereof.
27 [(b) Whenever any common carrier or public utility governed
28 by the provisions of this act files with the state corporation com-
29 mission a schedule showing the changes desired to be made and
30 put in force by such public utility or common carrier, the commis-
31 sion either upon complaint or upon its own motion, may give notice
32 and hold a hearing upon such proposed changes. Pending such
33 hearing, the commission may suspend the operation of such sched-
34 ule and defer the effective date of such change in rate, joint rate,
35 toll, charge or classification or schedule of charges, or any rule or
36 regulation or practice pertaining to the service or rates of any such
37 public utility or common carrier by delivering to such public utility
38 or common carrier a statement in writing of its reasons for such
39 suspension.
40 [(c) The commission shall not delay the effective date of the
41 proposed change in rate, joint rate, toll, charge or classification or
42 schedule of charges, or in any rule or regulation or practice per-
43 taining to the service or rates of any such public utility or common
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1 carrier, more than 240 days beyond the date the public utility or
2 common carrier filed its application requesting the proposed
3 change. If the commission does not suspend the proposed schedule
4 within 30 days of the date the same is filed by the public utility or
5 common carrier, such proposed schedule shall be deemed ap-
6 proved by the commission and shall take effect on the proposed
7 effective date. If the commission has not issued a final order on
8 the proposed change in any rate, joint rate, toll, charge or classi-
9 fication or schedule of charges, or any rule or regulation or prac-
10 tice pertaining to the service or rates of any such public utility or
11 common carrier, within 240 days after the carrier or utility files its
12 application requesting the proposed change, then the schedule
13 shall be deemed approved by the commission and the proposed
14 change shall be effective immediately, except that (1) for purposes
15 of the foregoing provisions regarding the period of time within
16 which the commission shall act on an application, any amendment
17 to an application for a proposed change in any rate, which in-
18 creases the amount sought by the public utility or common carrier
19 or substantially alters the facts used as a basis for such requested
20 change of rate, shall, at the option of the commission, be deemed
21 a new application and the 240-day period shall begin again from
22 the date of the filing of the amendment, and (2) if hearings are in
23 process before the commission on a proposed change requested
24 by the public utility or common carrier on the last day of such 240-
25 day period, such period shall be extended to the end of such hear-
26 ings plus 20 days to allow the commission to prepare and issue its
27 final order, and, (3) nothing in this subsection shall preclude the public
28 utility or common carrier and the commission from agreeing to a waiver
29 or an extension of the 240-day period.
30 [(c) (d) Except as provided in subsection (b) (c), no change shall
31 be made in any rate, toll, charge, classification or schedule of
32 charges or joint rates, or in any rule or regulation or practice per-
33 taining to the service or rates of any such public utility or common
34 carrier, without the consent of the commission. Within 30 days
35 after such changes have been authorized by the state corporation
36 commission or become effective as provided in subsection (b) (c),
37 copies of all tariffs, schedules and classifications, and all rules and
38 regulations, except those determined to be confidential under
39 rules and regulations adopted by the commission, shall be filed in
40 every station, office or depot of every such public utility and every
41 common carrier in this state, for public inspection.
42 [(d) (e) Upon a showing by a public utility before the state cor-
43 poration commission at a public hearing and a finding by the com-
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1 mission that such utility has invested in projects or systems that
2 can be reasonably expected (1) to produce energy from a renew-
3 able resource other than nuclear for the use of its customers, (2)
4 to cause the conservation of energy used by its customers, or (3)
5 to bring about the more efficient use of energy by its customers,
6 the commission may allow a return on such investment equal to an
7 increment of from 1/2% to 2% plus an amount equal to the rate of
8 return fixed for the utility's other investment in property found by
9 the commission to be used or required to be used in its services to
10 the public. The commission may also allow such higher rate of
11 return on investments by a public utility in experimental projects,
12 such as load management devices, which it determines after public
13 hearing to be reasonably designed to cause more efficient utili-
14 zation of energy and in energy conservation programs or measures
15 which it determines after public hearing provides a reduction in
16 energy usage by its customers in a cost-effective manner.
17 [(f) Nothing shall preclude the commission from approving, proposing
18 or endorsing, as part of the commission's rate-making process, an incen-
19 tive rate mechanism for setting rates of a utility industry by means other
20 than a cost of service analysis if the commission determines that compe-
21 tition effectively exists in the industry's service and prices or if the com-
22 mission determines that the ratepayers will derive significant benefits.
23 [(e) (g) Whenever, after the effective date of this act, an electric
24 public utility, a natural gas public utility or a combination thereof,
25 files tariffs reflecting a surcharge on the utility's bills for utility
26 service designed to collect the annual increase in expense charged
27 on its books and records for ad valorem taxes, such utility shall
28 report annually to the state corporation commission the changes
29 in expense charged for ad valorem taxes. For purposes of this sec-
30 tion, such amounts charged to expense on the books and records
31 of the utility may be estimated once the total property tax payment
32 is known. If found necessary by the commission or the utility, the
33 utility shall file tariffs which reflect the change as a revision to the
34 surcharge. Upon a showing that the surcharge is applied to bills in
35 a reasonable manner and is calculated to substantially collect the
36 increase in ad valorem tax expense charged on the books and re-
37 cords of the utility, or reduce any existing surcharge based upon
38 a decrease in ad valorem tax expense incurred on the books and
39 records of the utility, the commission shall approve such tariffs
40 within 30 days of the filing. Any over or under collection of the
41 actual ad valorem tax increase charged to expense on the books of
42 the utility shall be either credited or collected through the sur-
43 charge in subsequent periods. The establishment of a surcharge
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1 under this section shall not be deemed to be a rate increase for
2 purposes of this act. The net effect of any surcharges established
3 under this section shall be included by the commission in the es-
4 tablishment of base rates in any subsequent rate case filed by the
5 utility.
6 [(f) (h) Except as to the time limits prescribed in subsection (b)
7 (c), proceedings under this section shall be conducted in accor-
8 dance with the provisions of the Kansas administrative procedure
9 act.]
10 [Sec. 16. K.S.A. 1996 Supp. 55-150 is hereby amended to read
11 as follows: 55-150. As used in this act unless the context requires
12 a different meaning:
13 [(a) ``Commission'' means the state corporation commission.
14 [(b) ``Contractor'' means any person who acts as agent for an
15 operator as a drilling, plugging, service rig or seismograph con-
16 tractor in such operator's oil and gas, cathodic protection, gas gath-
17 ering or underground natural gas storage operations.
18 [(c) ``Fresh water'' means water containing not more than
19 1,000 milligrams per liter, total dissolved solids.
20 [(d) ``Gas gathering system'' means a natural gas pipeline sys-
21 tem used primarily for transporting natural gas from a wellhead,
22 or a metering point for natural gas produced by one or more wells,
23 to a point of entry into a main transmission line, but shall not mean
24 or include: (1) the gathering of natural gas produced from wells owned
25 and operated by the gatherer and where the gathering system is used
26 exclusively for its own private purposes; (2) Lead lines from the well-
27 head to the connection with the gathering system which are owned
28 by the producing entity person; and (3) (2) gathering systems used
29 exclusively for injection and withdrawal from natural gas storage fields
30 under the jurisdiction of the federal energy regulatory commission.
31 [(e) ``Operator'' means a person who is responsible for the
32 physical operation and control of a well, gas gathering system or
33 underground natural gas storage facility.
34 [(f) ``Person'' means any natural person, partnership, govern-
35 mental or political subdivision, firm, association, corporation or
36 other legal entity.
37 [(g) ``Rig'' means any crane machine used for drilling or plug-
38 ging wells.
39 [(h) ``Usable water'' means water containing not more than
40 10,000 milligrams per liter, total dissolved solids.
41 [(i) ``Well'' means a hole drilled or recompleted for the purpose
42 of:
43 [(1) Producing oil or gas;
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1 [(2) injecting fluid, air or gas in the ground in connection with
2 the exploration for or production of oil or gas;
3 [(3) obtaining geological information in connection with the
4 exploration for or production of oil or gas by taking cores or
5 through seismic operations;
6 [(4) disposing of fluids produced in connection with the explo-
7 ration for or production of oil or gas;
8 [(5) providing cathodic protection to prevent corrosion to
9 lines; or
10 [(6) injecting or withdrawing natural gas.
11 [New Sec. 17. The term ``public utility'' as used in K.S.A. 66-
12 104, and amendments thereto, and the term ``common carriers''
13 as used in K.S.A. 66-105, and amendments thereto, shall not in-
14 clude any gas gathering system, as defined in K.S.A. 55-150, and
15 amendments thereto.
16 [New Sec. 18. (a) As used in sections 17 through 23:
17 [(1) ``Gas gathering services'' means the gathering or prepa-
18 ration of natural gas for transportation, whether such services are
19 performed for hire or in connection with the purchase of natural
20 gas by the gatherer or a marketer affiliated with the gatherer. ``Gas
21 gathering services'' does not include the gathering of natural gas
22 by an owner or operator of a well or wells connected to the owner's
23 or operator's own gathering facilities, if the owner or operator
24 does not hold such facilities out for hire on or after the effective
25 date of this act.
26 [(2) Other terms have the meanings provided by K.S.A. 55-150,
27 and amendments thereto.
28 [(b) The provisions of sections 17 through 23 shall be part of
29 and supplemental to chapter 55 of the Kansas Statutes Annotated.
30 [New Sec. 19. (a) Each person offering gas gathering services
31 in this state shall file with the commission copies of: (1) Rates paid
32 for natural gas purchased by the person at the wellhead, if the
33 person purchases natural gas at the wellhead; (2) all rates charged
34 for transportation, processing necessary for transportation and
35 sale of natural gas, manufacturing or other services offered by the
36 person; and (3) such data related to the characteristics of the gas
37 purchased or handled by the person and such information regard-
38 ing the terms and duration of the contract as the commission de-
39 termines necessary. The commission shall adopt rules and regu-
40 lations prescribing the form and times of filing of such rates,
41 schedules and data. The commission shall not be required to an-
42 alyze, publish or disseminate such rates, schedules and data except
43 to the extent otherwise required by law.
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1 [(b) Upon notice and an opportunity to be heard in accordance
2 with the provisions of the Kansas administrative procedure act, the
3 commission may impose an administrative fine on any person for
4 failure to file any rate, schedule or data as required by this section
5 and rules and regulations of the commission. Such fine shall not
6 exceed $10,000 for each day the rate, schedule or data remains
7 unfiled as required or an aggregate amount of $250,000, which-
8 ever is less.
9 [(c) Rates, schedules and data filed pursuant to this section
10 shall not be used by the commission to order a change in any rate
11 except in a proceeding pursuant to section 20.
12 [(d) Rates, schedules and data filed pursuant to this section
13 shall not be subject to the provisions of K.S.A. 66-1220a and
14 amendments thereto.
15 [New Sec. 20. (a) No person offering gas gathering services in
16 this state, or facilities essential to provision of such services, shall
17 deny access to any person seeking such services or facilities, in a
18 manner that is unjust, unreasonable, unjustly discriminatory or un-
19 duly preferential.
20 [(b) No person performing gas gathering services shall charge
21 a fee for such services, or engage in any practice in connection
22 with such services, which is unjust, unreasonable, unjustly discrim-
23 inatory or unduly preferential.
24 [New Sec. 21. (a) The commission, in its discretion, may at any
25 time review a fee, term or practice being used by a gas gathering
26 system operator to ascertain whether a violation of section 19 has
27 occurred. Upon such review, the commission may initiate a pro-
28 ceeding to determine whether a violation of section 19 has oc-
29 curred. Upon notice and an opportunity for hearing in accordance
30 with the Kansas administrative procedure act, the commission
31 shall have authority to order the remediation of any violation of
32 section 19 that the commission finds has occurred.
33 [(b) Any consumer of gas gathering services, or any other per-
34 son impacted by the terms imposed by a gas gathering system op-
35 erator, may request the commission to investigate and initiate pro-
36 ceedings to review a fee, term or practice being used by a gas
37 gathering system operator. As a condition to formal commission
38 action, the person requesting commission action must first file a
39 complaint that includes:
40 [(1) A statement that the complainant has presented the com-
41 plaint, in writing, to the gas gathering system operator and in-
42 cluded a request for a meeting with the system operator to discuss
43 the matter;
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1 [(2) a copy of the document described in subsection (b)(1);
2 [(3) a statement that the requested meeting took place or the
3 system operator refused to meet with the complainant;
4 [(4) detailed factual statement indicating how the fee, term or
5 practice violates section 19;
6 [(5) a statement of the precise remedy being requested that
7 will make the fee, term or practice consistent with the provisions
8 of section 19; and
9 [(6) if the complainant is a producer of natural gas, a copy of
10 the analysis of the complainant's natural gas, including the nitro-
11 gen, carbon dioxide, hydrogen sulfide, water and other contami-
12 nant content; the amount of volume; and the amount of pressure
13 at the wellhead.
14 [(c) The commission may resolve the complaint by use of an
15 informal procedure established by the commission pursuant to
16 rules and regulations adopted by the commission or the commis-
17 sion may conduct a formal hearing and take evidence as necessary
18 to determine the merits of the complaint. If the commission uses
19 an informal procedure and the complaint is not resolved within 60
20 days after the complaint is filed, the commission shall conduct a
21 formal hearing on the complaint. The hearing shall be conducted
22 and notice given in accordance with the Kansas administrative pro-
23 cedure act. Upon such hearing, the commission shall have author-
24 ity to order the remediation of any violations of section 19, to the
25 extent necessary for remediation as to the aggrieved person with
26 respect to the particular violation.
27 [(d) In evaluating a fee or term, or in establishing a reasonable
28 fee or term, the commission is not required to engage in cost-of-
29 service ratemaking or any other form of ratemaking. Instead, the
30 commission can employ any form of analysis and remedy that is
31 designed to accomplish the goals of this act while respecting the
32 legitimate property interests of the gas gathering system operator.
33 [(e) The commission shall maintain a publicized telephone
34 number to facilitate the filing of informal complaints pursuant to
35 subsection (b).
36 [(f) The commission shall adopt such rules and regulations as
37 the commission determines reasonably necessary to prevent abuse
38 of the complaint procedure provided for by this section. Such rules
39 and regulations shall include provisions to prevent delay of the
40 proceedings that may damage a party's ability to pursue or defend
41 the complaint.
42 [New Sec. 22. The commission may adopt such rules and reg-
43 ulations as the commission determines necessary to improve mar-
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1 ket competition in, improve access to or protect the public interest
2 in gas gathering services.
3 [New Sec. 23. The commission may exempt natural gas sold
4 directly to a consumer from the wellhead before the gas enters a
5 gathering system from rate averaging or pricing systems that apply
6 to gas sold from a gas gathering system.
7 [New Sec. 24. In any retail natural gas service area where the
8 commission has granted a certificate of convenience and necessity
9 to sell natural gas at retail from a gas gathering system, the com-
10 mission may issue other certificates of convenience and necessity
11 to make such sales in such area. A person purchasing natural gas
12 or gas gathering services from a gas gathering system operator in
13 a retail natural gas service area where the commission has issued
14 more than one certificate of convenience and necessity shall not
15 be assessed an exit fee for electing to purchase natural gas or gas
16 gathering services from another gas gathering system operator.]
17 Sec. 11. 15 [25]. K.S.A. 66-131a, 66-1,191 and 66-1,234 and K.S.A.
18 1996 Supp. [55-150,] 66-101d, 66-101e, [66-117,] 66-125, 66-1,192, 66-
19 1,204, 66-1,205, 66-1,219, 66-1,220 and 66-1,235 are hereby repealed.
20 Sec. 12. 16 [26]. This act shall take effect and be in force from and
21 after its publication in the statute book.