Session of 1999
Substitute for SENATE BILL No. 257
By Committee on Utilities
2-24
9 AN ACT concerning electric transmission lines; amending K.S.A. 66-
10 104b, 66-104d and 66-1,177 and K.S.A. 1998 Supp. 66-128 and re-
11 pealing the existing sections; also repealing K.S.A. 66-1,178, 66-1,179,
12 66-1,180, 66-1,181 and 66-1,182.
13
14 Be it enacted by the Legislature of the State of Kansas:
15 Section 1. K.S.A. 66-1,177 is hereby amended to read as follows: 66-
16 1,177. As used in this act, the following terms shall have the meanings
17 ascribed to them herein:
18 (a) "Electric utility" means every public utility, as defined by K.S.A.
19 66-104 and amendments thereto, which owns, controls, operates or man-
20 ages any equipment, plant or generating machinery for the production,
21 transmission, delivery or furnishing, of electricity or electric power;
22 (b) "Electric transmission lines" means any line or extension of a line
23 which is at least five (5) miles in length and which is used for the bulk
24 transfer of two hundred thirty (230) kilovolts or more of electricity;
25 (c) "Commission" means the state corporation commission.
26 Sec. 2. K.S.A. 66-104b is hereby amended to read as follows: 66-
27 104b. (a) Except as otherwise provided in subsection (b), no electric co-
28 operative public utility, which is a nonprofit membership corporation,
29 shall be subject to the jurisdiction, regulation, supervision and control of
30 the state corporation commission if it meets the following conditions:
31 (1) The original cost of its electric public utility facilities located in
32 the state constitutes less than 25% of the total original cost of all its
33 electric public utility facilities located everywhere;
34 (2) the electric cooperative public utility does not have its headquar-
35 ters office in this state;
36 (3) the electric cooperative public utility is subject to the jurisdiction,
37 regulation, supervision and control of a regulatory authority existing under
38 the laws of any state bordering upon this state;
39 (4) the electric cooperative public utility certifies to the state corpo-
40 ration commission that a regulatory authority of a bordering state has
41 asserted jurisdiction, regulation, supervision and control over its electric
42 operations; and
43 (5) customers of the electric cooperative public utility in this state
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1 are charged the same rates and are provided service under the same terms
2 and conditions as are its customers located in similar areas in a bordering
3 state.
4 (b) The state corporation commission shall retain jurisdiction and
5 control over any such electric cooperative public utility necessary to insure
6 compliance with the condition that customers of the electric cooperative
7 public utility in this state are provided service under the same terms and
8 conditions as are its customers located in similar areas of a bordering state
9 and may, in its discretion, require any such utility to furnish copies of
10 documents filed with the appropriate regulatory authority of the appro-
11 priate bordering state which demonstrate its compliance with the con-
12 dition. Nothing in this section shall be construed to affect the single cer-
13 tified service territory of an electric cooperative public utility or the
14 authority of the state corporation commission over an electric cooperative
15 public utility with regard to service territory, and wire stringing and trans-
16 mission line siting and pursuant to K.S.A. 66-131, 66-1,170 et seq., and
17 66-183, 66-1,177 et seq., and amendments to such sections thereto. Noth-
18 ing herein shall affect the jurisdiction of the state corporation commission
19 over sales of power for resale.
20 Sec. 3. K.S.A. 66-104d is hereby amended to read as follows: 66-
21 104d. (a) As used in this section, "cooperative" means any cooperative,
22 as defined by K.S.A. 17-4603 and amendments thereto, which has fewer
23 than 15,000 customers and which provides power principally at retail.
24 (b) Except as otherwise provided in subsection (f), a cooperative may
25 elect to be exempt from the jurisdiction, regulation, supervision and con-
26 trol of the state corporation commission by complying with the provisions
27 of subsection (c).
28 (c) To be exempt under subsection (b), a cooperative shall poll its
29 members as follows:
30 (1) An election under this subsection may be called by the board of
31 trustees or shall be called not less than 180 days after receipt of a valid
32 petition signed by not less than 10% of the members of the cooperative.
33 (2) The proposition for deregulation shall be presented to a meeting
34 of the members, the notice of which shall set forth the proposition for
35 deregulation and the time and place of the meeting. Notice to the mem-
36 bers shall be written and delivered not less than 21 nor more than 45
37 days before the date of the meeting.
38 (3) If the cooperative mails information to its members regarding the
39 proposition for deregulation other than notice of the election and the
40 ballot, the cooperative shall also include in such mailing any information
41 in opposition to the proposition that is submitted by petition signed by
42 not less than 1% of the cooperative's members. All expenses incidental
43 to mailing the additional information, including any additional postage
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1 required to mail such additional information, must be paid by the sig-
2 natories to the petition.
3 (4) If the proposition for deregulation is approved by the affirmative
4 vote of not less than a majority of the members voting on the proposition,
5 the cooperative shall notify the state corporation commission in writing
6 of the results within 10 days after the date of the election.
7 (5) Voting on the proposition for deregulation shall be by mail ballot.
8 (d) A cooperative exempt under this section may elect to terminate
9 its exemption in the same manner as prescribed in subsection (c).
10 (e) An election under subsection (c) or (d) may be held not more
11 often than once every two years.
12 (f) Nothing in this section shall be construed to affect the single cer-
13 tified service territory of a cooperative or the authority of the state cor-
14 poration commission, as otherwise provided by law, over a cooperative
15 with regard to service territory, charges for transmission services, sales of
16 power for resale, and wire stringing and transmission line siting, pursuant
17 to K.S.A. 66-131, 66-183, and 66-1,170 et seq. or 66-1,177 et seq., and
18 amendments thereto.
19 (g) (1) Notwithstanding a cooperative's election to be exempt under
20 this section, the commission shall investigate all rates, joint rates, tolls,
21 charges and exactions, classifications and schedules of rates of such co-
22 operative if there is filed with the commission, not more than one year
23 after a change in such cooperative's rates, joint rates, tolls, charges and
24 exactions, classifications or schedules of rates, a petition signed by not
25 less than 5% of all the cooperative's customers or 3% of the cooperative's
26 customers from any one rate class. If, after investigation, the commission
27 finds that such rates, joint rates, tolls, charges or exactions, classifications
28 or schedules of rates are unjust, unreasonable, unjustly discriminatory or
29 unduly preferential, the commission shall have the power to fix and order
30 substituted therefor such rates, joint rates, tolls, charges and exactions,
31 classifications or schedules of rates as are just and reasonable.
32 (2) The cooperative's rates, joint rates, tolls, charges and exactions,
33 classifications or schedules of rates complained of shall remain in effect
34 subject to change or refund pending the state corporation commission's
35 investigation and final order.
36 (3) Any customer of a cooperative wishing to petition the commission
37 pursuant to subsection (g)(1) may request from the cooperative the
38 names, addresses and rate classifications of all the cooperative's customers
39 or of the cooperative's customers from any one or more rate classes. The
40 cooperative, within 21 days after receipt of the request, shall furnish to
41 the customer the requested names, addresses and rate classifications and
42 may require the customer to pay the reasonable costs thereof.
43 (h) (1) If a cooperative is exempt under this section, not less than 10
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1 days' notice of the time and place of any meeting of the board of trustees
2 at which rate changes are to be discussed and voted on shall be given to
3 all members of the cooperative and such meeting shall be open to all
4 members.
5 (2) Violations of subsection (h)(1) shall be subject to civil penalties
6 and enforcement in the same manner as provided by K.S.A. 75-4320 and
7 75-4320a, and amendments thereto, for violations of K.S.A. 75-4317 et
8 seq. and amendments thereto.
9 Sec. 4. K.S.A. 1998 Supp. 66-128 is hereby amended to read as fol-
10 lows: 66-128. (a) The state corporation commission shall determine the
11 reasonable value of all or whatever fraction or percentage of the property
12 of any common carrier or public utility governed by the provisions of this
13 act which property is used and required to be used in its services to the
14 public within the state of Kansas, whenever the commission deems the
15 ascertainment of such value necessary in order to enable the commission
16 to fix fair and reasonable rates, joint rates, tolls and charges. In making
17 such valuations the commission may avail itself of any reports, records or
18 other things available to the commission in the office of any national, state
19 or municipal officer or board.
20 (b) For the purposes of this act, property of any public utility which
21 has not been completed and dedicated to commercial service shall not
22 be deemed to be used and required to be used in the public utility's
23 service to the public, except that, any property of a public utility may be
24 deemed to be completed and dedicated to commercial service if: (1) Con-
25 struction of the property will be commenced and completed in one year
26 or less; (2) the property is an electric generation facility that has a capacity
27 of 100 megawatts or less and converts wind, solar, biomass, landfill gas
28 or any other renewable source of energy; or (3) construction of the prop-
29 erty has been authorized by a siting permit issued under K.S.A. 66-1,158
30 et seq. or 66-1,177 et seq., and amendments thereto.
31 Sec. 5. K.S.A. 66-104b, 66-104d, 66-1,177, 66-1,178, 66-1,179, 66-
32 1,180, 66-1,181 and 66-1,182 and K.S.A. 1998 Supp. 66-128 are hereby
33 repealed.
34 Sec. 6. This act shall take effect and be in force from and after its
35 publication in the Kansas register.