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Minutes for HB2178 - Committee on Judiciary

Short Title

Amending the Kansas underground utility damage prevention act.

Minutes Content for Tue, Feb 12, 2019

Nick Myers, Assistant Revisor, provided an overview of HB2178.  He addressed questions from the membership. (Attachment 1)

Leslie Kaufman testified in support of HB2178 saying to help frame the discussion today, it was important to remember two key aspects of the Kansas Underground Utility Damage Prevention Act (KUUDPA):

  • KUUDPA was originally enacted to protect utility lines from damage; and
  • KUUDPA has historically recognized that certain private lines fall outside the purview of the act’s marking requirement.

Ms. Kaufman also explained, HB2178 is not intended to relieve electric utilities of the marking requirements currently placed on utilities under statute. She further explained, it was intended to prevent saddling electric providers with new obligations and legal duties once the Kansas Corporation Commission’s (Commission) March 15, 2018, and April 26, 2018, orders (the orders) in Docket Number 17-GIME-565-GIV become effective April 30, 2019, under what they believe is a clear misinterpretation of the statute. Ms. Kaufman said it would be remiss if she did not recognize that staff at the Commission has been very willing to dialogue with them over several months on the various legislative options they proposed to address their concerns with the orders.  While this end-product is the KEC’s bill, their insights have been helpful to them in their drafting process, and they appreciate that. She also clarified that when she used “utility” in this statement, she was referring to electric utilities, although gas, communications, and water providers also fall under KUUDPA. References to “customer” in this testimony also include the member-owners of a cooperative. (Attachment 2)

Fred Taylor testified in support of HB2178 explaining last year, the Kansas Corporation Commission introduced a new rule requiring utilities to locate not just up to the point of delivery but also customer owned and installed electrical lines beyond the point of delivery, on the customer’s property. Mr. Taylor believes there are two key reasons why HB2178’s passage is critical.  First and foremost are costs associated with taking on the additional responsibilities that would take affect later this year. The second concern was the liability the new rule subjects electric providers too. HB2178 would establish a clear delineation between utility and customer responsibilities, and restore the act of locating underground electric facilities to the process which has served Kansans well for 26 years. (Attachment 3)

The proponents of HB2178 addressed questions from the membership.

The following individuals provided written testimony in support of HB2178:

  • Stephen Epperson, CEO, Pioneer Cooperative, Southern Pioneer Electric Cooperative (Attachment 4)
  • Bruce Mueller, CEO, Wheatland Electric (Attachment 5)

Leo Haynos provided neutral testimony on HB2178 while pointing out some concerns and suggestions to the bill.  Mr. Haynos proposed to remove any question of intent regarding the phrase “or operates” by striking this phrase from the definition of operator. This modification would make operators responsible under KUUDPA only for the underground facilities they own. To further emphasize this point, the bill adds an exemption to the definition of operator for those utilities that provide electric service by noting the demarcation point between facilities owned by an electric utility and its customers can be determined from an operator’s published rules and regulations or service agreements. Mr. Haynos felt like the proposed changes causes some confusion. If the committee agrees with the proposal to limit locating responsibility for electric providers to only those facilities they own, he suggested not striking the phrase “or operates” and leaving in the exemption for electric service providers as proposed. (Attachment 6)  Mr. Haynos addressed questions from the membership.

The following individuals provided written neutral for HB2178:

The following individuals provided written testimony in opposition to HB2178:

  •   Scott Heidner, Executive Director, American Council of Engineering Companies of KS (Attachment 10)
  •   Rick Schick, President, K & W Underground Inc., Olathe, Kansas (Attachment 11)

Chairperson Patton closed the hearing on HB2178.