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Minutes for SB124 - Committee on Utilities
Short Title
Prohibiting the state corporation commission from authorizing certain charges for electric service.
Minutes Content for Tue, Mar 12, 2019
Chairman Masterson called the meeting to order. This is a continuation of SB124 to hear the opponents.
Staff gave an explanation of the bill.
Chuck Caisley, Westar/CKP&L stated that Evergy opposes SB124 because it effectively returns the practice of cross-subsidizing energy and delivery costs from solar customers to non-solar customers. It removes the demand charge implemented just last year for distributed generation retail customers, which equitably allows them to self-generate their own electricity, sell excess generation back to the utility, and use the electric grid from back-up power. (Attachment 1)
Whitney Damron, Liberty Utilities said by way of history, the state's original net metering act was passed by legislature in 2009 as part of a broader energy bill. In 2014, the three investor-owned electric utilities brought forth legislation to place certain limitations on net metering customers in effort to protect their traditional customers from unduly subsidizing net metering customers. SB124 would effectively return the state's laws on net metering to 2009 standards.(Attachment 2)
Jeff McClanahan, Director, Utilities Division, Kansas Corporation Commission said the Commission finds rates for private residential DG customers should be cost-based and any unquantifiable value of resource approach should not be considered when setting rates. This is because cost-based rates are a fundamental attribute of good rate design as they allow the Commission to clearly identify quantifiable costs, which ensures rates for all customers are equitable while encouraging efficient use of resources and minimization of unnecessary cross-subsidization between customers.(Attachment 3)
Mr. Caisley and Mr. McClanahan answered questions from members.
Randy E. Stookey, Senior Vice President of Government Affairs on behalf of Kansas Grain and Feed Association, and Renew Kansas Association provided Written Only testimony in support of the bill.(Attachment 4) Lisa Larsen, Mayor City of Lawrence provided Written Only testimony in support of bill..(Attachment 5)
Chairman Masterson closed the hearing on SB124
