Brief⁽¹⁾

H.B. 2400 would:

• exempt nonnuclear generation facilities from the Electric Generation Facility Siting Act;



• exempt nonnuclear electric generation facilities of a public utility, not included in the utility's rate base, from rate regulation by the Kansas Corporation Commission;



• effective for all taxable years beginning July 1, 1999, exempt nonnuclear electric generation facilities of a public utility, not included in the utility's rate base, from property taxation at the 33 percent assessment level (the apparent effect of the amendment would be to assess such property at 25 percent);



• define "independent power producer property" and, effective for all taxable years beginning July 1, 1999, assess such property at 25 percent, like other commercial and industrial property; and



• exempt an electric utility from complying with certain siting requirements if that utility plans to construct transmission lines in rural areas on an easement where one or more electric transmission lines already exist ("electric transmission line" is defined in existing law as any line or extension of a line which is at least five miles in length and which is used for the bulk transfer of 230 kilovolts or more of electricity).

Background

The introduced version of H.B. 2400 would have exempted nonnuclear generation facilities from the Electric Generation Facility Siting Act. The bill, as introduced, was supported by: Jim Ludwig, Senior Director, Regulatory Affairs, Western Resources; J. C. Long, Government Affairs, Utilicorp United, Inc.; Bruce Graham, Vice President, Member Services & External Affairs, Kansas Electric Power Cooperative, Inc.; and Steve Miller, Senior Manager, External Affairs, Sunflower Electric Power Corporation. Barbara A. Huerter, Director, Government Affairs, Enron Corp., recommended several amendments. Larry Holloway, Chief of Energy Operations, Kansas Corporation Commission, provided some background information on the Electric Generation Facility Siting Act.

The House Committee amended the bill to add provisions concerning: regulatory and property tax treatment of nonnuclear generating facilities, not included in a utility's rate base; the definition of "independent power producer property" and associated property tax treatment; and certain exceptions to the transmission siting statutes.

1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/bill_search.html.