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Minutes for SB126 - Committee on Energy, Utilities and Telecommunications

Short Title

Substitute for SB 126 by Committee on Utilities - Exempting certain public utilities from Kansas income taxation and requiring the filing of new retail electric rates in certain circumstances.

Minutes Content for Tue, Mar 10, 2020

Chairperson Seiwert opened the hearing on Sub for SB126 at 9:03am.

Nick Myers, Revisor's Office provided an overview of the bill. (Attachment 1)

Proponents testifying for the bill included:

Justin Grady, Kansas Corporation Commission (KCC) indicated they are supportive of the bill. He indicated they were not taking a position on tax effects of the bill, but their written testimony notes a revision pertaining to when exemption of state income taxes would take effect, specifically, "beginning on or after January 1, 2021," which would impact when some providers could participate. Mr. Grady responded to questions from the committee regarding the accuracy of London Economics International (LEI) calculations and the amortization of excess deferred taxes. (Attachment 2)

Paul Snider representing Kansas Industrial Consumers Group (KIC) and Kansans for Lower Electric Rates (KLER) explained utilities collect income tax and not collecting the tax would benefit customers. KIC believes the bill is in the best interest of ratepayers. He also indicated there were technical amendments, which still need to be addressed. Mr. Snider responded to questions from the committee. (Attachment 3)

David Nickel, Citizens' Utility Ratepayer Board (CURB), indicated CURB supports Sub for SB126 because of the opportunity to reduce ratepayer rates. (Attachment 4)

Jessica Lucas representing Wichita Regional Chamber of Commerce indicated their manufacturing members support the bill because it enables them to be more competitive in a global marketplace. (Attachment 5)

Chairperson Seiwert closed the oral Proponent testimony on Sub for SB126 at 9:28am.

Proponents who submitted written-only testimony:

Conferees presenting oral Neutral testimony were:

Chuck Caisley, Evergy indicated everything he would have said had been covered and he agreed with all that was previously said. (Attachment 9)

Leslie Kaufman, indicated KEC is neutral on the bill and then explained the nature of the amendments that the cooperatives were requesting. (Attachment 10)

Neutral written-only testimony was submitted by:

Chairperson Seiwert closed the hearing on Sub for SB126 at 9:32am.