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Minutes for HB2154 - Committee on Energy, Utilities and Telecommunications
Short Title
Providing for the statewide election of commissioners of the state corporation commission, establishing the utilities regulation division in the office of the attorney general, requiring such division to represent and protect the collective interests of utility customers in utility rate-related proceedings and exempting the state corporation commission from the open meetings act.
Minutes Content for Tue, Feb 14, 2023
Chairperson Delperdang opens the hearing on HB2154.
Nick Myers provided an overview of the bill. (Attachment9). Mr. Myers responded to questions from the committee members.
Chair recognized proponents for in person testimony as follows:
Paul Snider, Kansans for Lower Electric Rates (Attachment10) testified in support of the bill. Mr. Snider said Kansas has high electric rates. He said the regulatory model isn't working for the benefit of Kansas residential and business customers and it's time to reform the Kansas Corporation Commission (KCC). Mr. Snider said the bill would make the three commissioners of the KCC statewide, elected positions and to make the KCC more accountable to the public and correct the imbalance in favor of utilities currently found at the KCC.
Eric Stafford, Kansas Chamber (Attachment11) testified in support of the bill. He said the bill would change the structure of the Kansas Corporation Commission from an appointed regulatory body to a statewide elected commissioners. He said Kansas continues to experience the highest electricity cost in the region and believes this has caused ratepayers and our members to voice strong concerns over the relationship between the regulatory agency responsible for the oversight of our states investor-owned utility and lack of concern over the impact their decisions have on ratepayers in Kansas.
Elizabeth Patton, Americans for Prosperity-Kansas (Attachment12) testified in support of the bill. Ms. Patton said Kansas has already fallen behind the rest of the region when it comes to electricity rates. She believes a distinct solution to this problem is a Kansas Corporation Commission (KCC) who is accountable to the ratepayers directly. This bill would ensure the KCC is working for the ratepayers, not acting as a rubber stamp for special interests, be it for the utilities and their shareholders or for marginal energy producers that depend on government favoritism to compete with more efficient sources of electricity generation at the expense of ordinary Kansans.
Proponents- Written Only testimony as follows:
Pete Loecke, Spirit AeroSystems (Attachment13)
Chairperson Delperdang recognized neutral in person testimony as follows:
John Idoux, Brightspeed (Attachment14) testified as neutral on the bill. Mr. Idoux believes the bill would increase the Kansas Corporation Commission (KCC) cost and potentially increased costs by the Citizens Utility Rate Board (CURB). He said currently the KCC and CURB are funded by regulated entities via an agency assessment structure, and would be unjust to require these entities to continue to fund the KCC or CURB. He said he believes the committee should amend the bill to fund both KCC and CURB from the state general fund and eliminate the current assessment funding structure.
Jeff McClanahan, Kansas Corporation Commission (Attachment15) testified as neutral on the bill. He said the bill would require statewide elections of Kansas Corporation Commission (KCC) and establish a utilities regulatory division within the Attorney General's (AG) office. Mr. McClanahan said the new office would represent and protect the interest of all utility customers in any rate-related proceedings of the KCC and in any other state or federal proceedings and would be staffed by transferring all currently KCC utilities staff to the AG's office. He questions whether the creation of a utilities division within the AG's office is in the best interest of the public because it is likely to weaken the overall utility regulation rather than strengthen it.
Neutral- Written Only testimony as follows:
David Nickel, CURB (Attachment16)
Chair recognizes opponents testimony as follows:
Reagan McCloud, Kansas Electric Cooperative (Attachment17) testified as an opponent of the bill. Mr. McCloud said he does not believe the changes in the bill guarantee rates in Kansas will be lowered. He believes the bill could result in duplication of staffing between the Attorney General's (AG) office, the Kansas Corporation Commission (KCC) and possibly the Citizens Utility Ratepayer Board (CURB), resulting in increased rates for Kansas consumers. He said the Kansas Electric Cooperative supports the current appointed commission process that includes the opportunity for a robust, all-important Senate confirmation process that is an important balance in the time honored appointment process that is used in both state and federal levels.
Ed Cross, KIOGA (Attachment18) testified as an opponent of the bill. Mr. Cross said he is concerned about higher electric rates and KIOGA looks forward in discussions on ways to help address electric costs. He said the Kansas Corporation Commission commissioner responsibilities require qualified professionals with high level analytical skills and object a political approach to complex issues. He said it does not serve the public interest to have utility and other energy issues being decided by politicians.
Marc Spitzer, Edison Electric Institute (Attachment19) testified as an opponent of the bill. He said the Kansas Corporation Commission (KCC) mission is a regulatory undertaking spanning electrical engineering, finance, economics, rate design and coordination with nearby states and FERC. He believes the electoral process could introduce unwarranted confusion in the KCC proceedings and potentially undermine public confidence in their decisions.
Chuck Caisley, Evergy (Attachment20) testified as an opponent of the bill. Mr. Casiley said there are several things Evergy does not like about the bill. He believes the bill is unnecessary and ineffective at achieving the proponents ostensive goals and is utterly unfair to nearly all Kansas electric consumers. He said Evergy opposes this proposal as a transparent attempt to tilt the regulatory system in favor of a few large companies.
Colleen Jamison, Jamison Law (Attachment21) testified as an opponent of the bill. Ms. Jamison said she has been an attorney for the Kansas Corporation Commission (KCC) in the past and rarely has the KCC been fully staffed, not for lack of effort. KCC positions are largely highly educated and technical in nature. She is concerned a elected candidate could brazenly promise excessive rate cuts and completely ignore utilities' rights and jeopardize the utilities ability to provide sufficient and efficient service. She believes the bill allows for the new Attorney Generals (AG) staff to be funded by an assessment which is a cost that would be incorporated within a utility's revenue requirement and ultimately paid for by the utility's end user customers.
Zack Pistora, Kansas Sierra Club (Attachment22) testified as an opponent of the bill. He said he is involved in policies to lower electric rates with clean energy solutions. Mr. Pistora respects the Kansas Corporation Commissions (KCC) process and thinks the bill would result in a more politicized and less productive energy regulator. He does not think the KCC utilities division is compromised by being housed within the same agency of building.
The conferees responded to questions from the committee members.
Opponent- Written Only testimony as follows:
Whitney Damron, Liberty Utilities (Attachment23)
John Donley, Kansas Farm Bureau (Attachment24)
Patrick Vogelsberg, Kansas Gas Service (Attachment25)
Chairperson Delperdang closed the hearing on HB2154.
The next House Energy, Utilities and Telecommunication committee meeting is scheduled for February 16th.
Chair adjourned the meeting at 10:35am.
