Minutes for SB68 - Committee on Utilities

Short Title

Providing incumbent electric transmission owners a right of first refusal for the construction of certain electric transmission lines.

Minutes Content for Tue, Feb 7, 2023

The Chairman resumed the hearing and continued with proponent testimony.

Patrick Parke (Midwest Energy) exclaimed that Midwest Energy takes its right and obligation seriously as member owned cooperative for 80 years to continue to provide reliable electric service at just rates. Mr. Parke explained that the bill would return to the incumbent transmission owner the ability to maintain and expand transmission infrastructure to is member and customer base subject to the over-site of the state (as existed prior to federal orders to require competitive bidding). He referenced examples to establish that competition does not necessarily result in the lowest cost or the most reliable and resilient grid. Mr. Parke concluded by stating support for what he termed the KEPCO amendment.

(Attachment 1)

James Brungardt (Sunflower Electric Corporation) stated that he represents a membership owned cooperative that operates at cost or on a not-for-profit basis that returns any gains over cost back to its members and local ratepayers. Mr. Brungardt refered to a graphic that indicated that while the cooperative's power load remained flat its transmission costs have increased over six times. He explained that this increase was due to external forces and without a state ROFR law, Kansas members, ratepayers and state regulators a subjugated to these outside interests.

(Attachment 2)

Darrin Ives (Evergy) stated that the return of accountability to local incumbent utility for system reliability while being subject to over-site by Kansas regulators, members and ratepayers is the best path to reliable and sustainable systems. Mr. Ives asserted that the adoption of the bill's proposed policy would best align Kansas with a majority of regional peers who have adopted clear ROFR policies.

(Attachment 3)

Regional Competitive Rates and Reasonable Capital Investment (Attachment 4)

Whitney Damron (Liberty Utilities) explained the benefit to ratepayers especially during inclement weather challenges with a clear understanding that the burden of responsibility that exists with local incumbent utility.

(Attachment 5)

Allie Devine (Kansas Farm Bureau) recognized the farm bureau group in attendance and quantified the magnitude of expected transmission line growth as to the major impacts on private land owner/business operator property rights. Ms. Divine called for an open and honest discussion and disclosure of information as to where lines are planned and who will be impacted. She referenced a recent landowner petition for intervention that was rejected by the KCC. She thanked the committee for allowing the KFB to introduce SB166 in an effort to clarify such details.

(Attachment 6)

Written-Only Proponent Testimony:

Todd Newkirk, International Brotherhood of Electric (IBEW)

(Attachment 7)

KLRD Memo: ROFR Laws in Other States

(Attachment 8)

Committee questions and comments ensued.

Chairman Olson suspended the hearing to be continued during the next meeting.