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 Thu, Feb 9, 2023

The Chairman resumed the hearing on the bill and called for neutral testimony.

David Nickel stated that competition may have an effect on the reliability and cost to rate payers. Mr Nickels urged the committee to consider that a lessening of competition could serve as a disincentive for lower costs of regional and local projects.

(Attachment 1)

Justin Grady recognized the pros and cons regarding the bill stated his confidence that the legislature would find what is best for Kansas rate payers. Mr. Grady referenced the Wolf Creek to Black Berry line project as to the cost savings that may be realized through the project's cost concessions, cost caps, and return on equity concession as a very robust set of cost containment protections. He provided a disclaimer stating that the expected benefits have yet to be seen since the project has not yet been built. He also cautioned the committee that past and current experience has demonstrated that competitive bidding can add time and complexity with more administrative proceedings that delay beginning and completion of transmission projects. He referenced the current NextEra certificate application proceeding has been very contentious and time consuming between several intervention groups. He indicated that the settlement involved lengthy discussions about reporting requirements and plans. He pointed out that the many contingency factors combined with a relatively unknown entity as this is its first involvement as a Kansas regulated project. He continued to say it has involved a great deal of complexity that would not be expected with an incumbent utility.

(Attachment 2)

Written-Only Neutral:

Kimberly Svaty, Kansas Municipal Utilities (KMU)

(Attachment 3)

Jeffrey Clark, Advanced Power Association (APA)

(Attachment 4)

Dwight Keene, Kansas Corporation Commission (KCC) Commissioner

(Attachment 5)

Spencer Duncan, League of Kansas Municipalities

(Attachment 6)