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Minutes for SB323 - Committee on Energy, Utilities and Telecommunications
Short Title
Concerning the Kansas retail electric suppliers act and the regulation of electric cooperatives and municipal energy agencies.
Minutes Content for Mon, Feb 19, 2018
Chair Seiwert opened the hearing.
Nick Myers, Assistant Revisor of Statues presented a bill brief. (Attachment 1) The bill would make amendments to statutes that relate to municipal energy agencies, electric cooperatives, and retail electric service territory when land is annexed by a city. He stood for questions.
Proponent testimony was presented by Colin Hansen. (Attachment 2) He indicated that KMU supports the bill in its current form. The legislation is the culmination of negotiations between KMU, KEC and other stakeholders. There are three main areas of the bill and his testimony focused on Section 1 regarding municipal energy agencies (MEAs). He stood for questions.
Bruce Graham presented proponent testimony. (Attachment 3) He focused on Section 3 of the bill, noting this amends the process in which a municipality must engage when determining which utility would serve the land annexed by the city -- the municipal or the incumbent certified utility. Nothing in this bill prohibits or restricts the ability of a municipality to proceed with annexation. If the revised process is achieved, the municipality can proceed and the certified electric territory will be amended. He stood for questions.
Proponent testimony was presented by Allie Devine. (Attachment 4) She focused on Section 2 of the bill, outlining the problems MWE has experienced with dual regulation of transmission rates. Today, the Kansas Corporation Commission (KCC) and the Federal Regulatory Commission (FERC) have jurisdiction over transmission rates. Reducing regulatory burdens and costs will ultimately benefit the customers through lower rates. She stood for questions.
Written only proponent testimony was provided by Erik Sartorius, Executive Director, League of Kansas Municipalities (Attachment 5), Mandy Roe, Director of Member Services, Kansas Cooperative Council (KCC) (Attachment 6), Lindsay Campbell, Executive Vice President/General Counsel, Pioneer Electric Cooperative and Mark Calcara, Vice President/Legal Counsel, Sunflower Electric jointly on behalf of Sunflower Electric Power Corporation, Mid Kansas Electric Company, Inc., Pioneer Electric Cooperative and Southern Pioneer Electric (Attachment 7) and David Nickel, Consumer Counsel, Citizens' Utility Ratepayer Board (CURB). (Attachment 8)
The Chair closed to the proponent portion.
There was no opposition testimony. The chair closed the opponent portion.
Neutral written only testimony was provided by Jeff McClanahan, Director, Utility Division, Kansas Corporation Commission. (Attachment 9)
The Chair closed the Neutral Portion. The Chair then closed the hearing.
Representative Mason moved to suspend the rules and take immediate action on the bill. Representative Garber seconded, the motion passed.
Representative Lusker made a motion to pass the bill favorably, Representative Davis seconded, motion passed unanimously on a voice vote.
Representative Finch voiced his objection to the Senate's bundling of the Kansas Corporation Commission (KCC) regulation issue with the service territory issue. He indicated that he believed it was inappropriate for the House not to have a voice in these issues and to have them fully vetted by both chambers. However, since all parties were in agreement he said he would reluctantly support the compromise.
