Session of 1999
HOUSE BILL No. 2271
By Committee on Utilities
2-4
9 AN ACT concerning certain electric generation facilities; relating to reg-
10 ulation and taxation of owners and operators of such facilities; amend-
11 ing K.S.A. 79-5a01 and K.S.A. 1998 Supp. 66-104 and repealing the
12 existing sections.
13
14 Be it enacted by the Legislature of the State of Kansas:
15 Section 1. K.S.A. 1998 Supp. 66-104 is hereby amended to read as
16 follows: 66-104. (a) The term "public utility," as used in this act, shall be
17 construed to mean every corporation, company, individual, association of
18 persons, their trustees, lessees or receivers, that now or hereafter may
19 own, control, operate or manage, except for private use, any equipment,
20 plant or generating machinery, or any part thereof, for the transmission
21 of telephone messages or for the transmission of telegraph messages in
22 or through any part of the state, or the conveyance of oil and gas through
23 pipelines in or through any part of the state, except pipelines less than 15
24 miles in length and not operated in connection with or for the general
25 commercial supply of gas or oil, and all companies for the production,
26 transmission, delivery or furnishing of heat, light, water or power. No
27 cooperative, cooperative society, nonprofit or mutual corporation or as-
28 sociation which is engaged solely in furnishing telephone service to sub-
29 scribers from one telephone line without owning or operating its own
30 separate central office facilities, shall be subject to the jurisdiction and
31 control of the commission as provided herein, except that it shall not
32 construct or extend its facilities across or beyond the territorial boundaries
33 of any telephone company or cooperative without first obtaining approval
34 of the commission. As used herein, the term "transmission of telephone
35 messages" shall include the transmission by wire or other means of any
36 voice, data, signals or facsimile communications, including all such com-
37 munications now in existence or as may be developed in the future.
38 (b) The term "public utility" shall also include that portion of every
39 municipally owned or operated electric or gas utility located outside of
40 and more than three miles from the corporate limits of such municipality,
41 but nothing in this act shall apply to a municipally owned or operated
42 utility, or portion thereof, located within the corporate limits of such
43 municipality or located outside of such corporate limits but within three
44 miles thereof except as provided in K.S.A. 66-131a, and amendments
45 thereto.
46 (c) Except as herein provided, the power and authority to control and
47 regulate all public utilities and common carriers situated and operated
48 wholly or principally within any city or principally operated for the benefit
49 of such city or its people, shall be vested exclusively in such city, subject
50 only to the right to apply for relief to the corporation commission as
51 provided in K.S.A. 66-133, and amendments thereto, and to the provi-
52 sions of K.S.A. 66-131a and K.S.A. 1998 Supp. 66-104e, and amendments
53 thereto. A transit system principally engaged in rendering local transpor-
54 tation service in and between contiguous cities in this and another state
55 by means of street railway, trolley bus and motor bus lines, or any com-
56 bination thereof, shall be deemed to be a public utility as that term is
57 used in this act and, as such, shall be subject to the jurisdiction of the
58 commission.
59 (d) The term "public utility" shall not include any activity of an oth-
60 erwise jurisdictional corporation, company, individual, association of per-
61 sons, their trustees, lessees or receivers as to the marketing or sale of
62 compressed natural gas for end use as motor vehicle fuel.
63 (e) (1) As used in subsection (e)(2) "electric cooperative" means any
64 cooperative, as defined by K.S.A. 17-4603 and amendments thereto, or
65 any nonstock member-owned cooperative corporation incorporated in
66 this state.
67 (2) The term "public utility" shall not include any activity of an oth-
68 erwise jurisdictional entity as to the generation, marketing and sale of
69 electricity generated by an electric generation facility construction of
70 which commenced on or after July 1, 1999, and no portion of which is
71 included in the rate base of: (A) An electric public utility that is subject
72 to rate regulation by the state corporation commission; (B) an electric
73 cooperative; or (C) a municipally owned or operated electric utility.
74 New Sec. 2. (a) As used in this section, "independent power pro-
75 ducer property" means property used solely in the generation, marketing
76 and sale of electricity generated by an electric generation facility construc-
77 tion of which commenced on or after July 1, 1999, and no portion of
78 which is included in the rate base of: (1) An electric public utility that is
79 subject to rate regulation by the state corporation commission; (2) an
80 electric cooperative, as defined by subsection (e) of K.S.A. 66-104 and
81 amendments thereto; or (3) a municipally owned or operated electric
82 utility.
83 (b) Independent power producer property is commercial and indus-
84 trial property for the purposes of taxation of real property and tangible
85 personal property, except that such property shall be appraised in the
86 manner pursuant to K.S.A. 79-5a01 et seq. and amendments thereto for
87 appraisal of public utility property. For the purpose of appraisal of in-
88 dependent power producer property, each county where any such prop-
89 erty is located shall contract with the state for the appraisal of such
90 property.
91 (c) The provisions of this section shall be applicable to all taxable
92 years commencing on or after July 1, 1999.
93 Sec. 3. K.S.A. 79-5a01 is hereby amended to read as follows: 79-
94 5a01. (a) As used in this act, the terms "public utility" or "public utilities"
95 shall mean every individual, company, corporation, association of persons,
96 lessees or receivers that now or hereafter are in control, manage or op-
97 erate a business of:
98 (1) A railroad or railroad corporation if such railroad or railroad cor-
99 poration owns or holds, by deed or other instrument, an interest in right-
100 of-way, track, franchise, roadbed or trackage in this state;
101 (2) transmitting to, from, through or in this state telegraphic
102 messages;
103 (3) transmitting to, from, through or in this state telephonic messages;
104 (4) transporting or distributing to, from, through or in this state nat-
105 ural gas, oil or other commodities in pipes or pipelines, or engaging pri-
106 marily in the business of storing natural gas in an underground formation;
107 (5) generating, conducting or distributing to, from, through or in this
108 state electric power;
109 (6) transmitting to, from, through or in this state water if for profit
110 or subject to regulation of the state corporation commission;
111 (7) transporting to, from, through or in this state cargo or passengers
112 by means of any vessel or boat used in navigating any of the navigable
113 watercourses within or bordering upon this state.
114 (b) The terms "public utility" or "public utilities" shall not include:
115 (1) Rural water districts established under the laws of the state of Kansas;
116 or (2) any individual, company, corporation, association of persons, lessee
117 or receiver owning or operating an oil or natural gas production gathering
118 line which is situated within one county in this state and does not cross
119 any state boundary line; or (3) any individual, company, corporation, as-
120 sociation of persons, lessee or receiver owning any vessel or boat operated
121 upon the surface of any manmade waterway located entirely within one
122 county in the state; or (4) the business of generating, marketing and selling
123 electricity generated by an electric generation facility construction of
124 which commenced on or after July 1, 1999, and no portion of which is
125 included in the rate base of: (A) An electric public utility that is subject
126 to rate regulation by the state corporation commission; (B) an electric
127 cooperative, as defined by subsection (e) of K.S.A. 66-104 and amend-
128 ments thereto; or (C) a municipally owned or operated electric public
129 utility.
130 Sec. 4. K.S.A. 79-5a01 and K.S.A. 1998 Supp. 66-104 are hereby
131 repealed.
132 Sec. 5. This act shall take effect and be in force from and after its
133 publication in the statute book.