66-104d. Certain electric cooperative public utilities not subject to commission jurisdiction; conditions; exceptions.
66-104d
66-104d. Certain electric cooperative publicutilities not subject tocommission jurisdiction; conditions; exceptions.(a) As used in this section, "cooperative" means anycorporation organized under the electric cooperative act, K.S.A.17-4601 et seq., and amendments thereto, or which becomes subjectto the electric cooperative act in the manner therein provided; or anylimited liability company or corporation providing electric service atwholesale in the state of Kansas that is owned by four or more electriccooperatives that provide retail service in the state of Kansas; or anymember-owned corporation formed prior to 2004.
(b) Except as otherwise provided in subsection (f), a cooperative may electto be exempt from the jurisdiction, regulation, supervision and control of thestate corporation commission by complying with the provisions of subsection(c).
(c) To be exempt under subsection (b), a cooperative shall poll its membersas follows:
(1) An election under this subsection may be called by the board of trusteesor shall be called not less than 180 days after receipt of a valid petitionsigned by not less than 10% of the members of the cooperative.
(2) The proposition for deregulation shall be presented to a meeting of themembers, the notice of which shall set forth the proposition for deregulationand the time and place of the meeting. Notice to the members shall be writtenand delivered not less than 21 nor more than 45 days before the date of themeeting.
(3) If the cooperative mails information to its members regarding theproposition for deregulation other than notice of the election and the ballot,the cooperative shall also include in such mailing any information inopposition to the proposition that is submitted by petitionsigned by not less than 1% of the cooperative's members. All expensesincidental to mailing the additional information, including any additionalpostage required to mail such additional information, must be paid by thesignatories to the petition.
(4) If the proposition for deregulation is approved by the affirmative voteof not less than a majority of the members voting on the proposition, thecooperative shall notify the state corporation commission in writing of theresults within 10 days after the date of the election.
(5) Voting on the proposition for deregulation shall be by mail ballot.
(d) A cooperative exempt under this section may elect to terminate itsexemption in the same manner as prescribed in subsection (c).
(e) An election under subsection (c) or (d) may be held not more often thanonce every two years.
(f) Nothing in this section shall be construed to affect the single certifiedservice territory of a cooperative or the authority of the state corporationcommission, as otherwise provided by law, over a cooperative with regard toservice territory; charges, fees or tariffs fortransmission services; sales of power for resale, other thansales between a cooperative, as defined in subsection (a), that does notprovide retail electric service and an owner of such cooperative; andwire stringing and transmission line siting, pursuant to K.S.A. 66-131, 66-183,66-1,170 et seq. or 66-1,177 et seq., and amendments thereto.
(g) (1) Notwithstanding a cooperative's election to be exempt under thissection, the commission shall investigate all rates, joint rates, tolls,charges and exactions, classifications and schedules of rates of suchcooperative if there is filed with the commission, not more than one year aftera change in such cooperative's rates, joint rates, tolls, charges andexactions, classifications or schedules of rates, a petition in the case ofa retail distribution cooperative signed by not less than 5% of all thecooperative's customers or 3% of the cooperative's customers from any one rateclass, or, in the case of a generation and transmission cooperative, notless than 20% of the generation and transmission cooperative's members or 5% ofthe aggregate retail customers of such members. If,after investigation, the commission finds that such rates, joint rates, tolls,charges or exactions, classifications or schedules of rates are unjust,unreasonable, unjustly discriminatory or unduly preferential, the commissionshall have the power to fix and order substituted therefor such rates, jointrates, tolls, charges and exactions, classifications or schedules of rates asare just and reasonable.
(2) The cooperative's rates, joint rates, tolls, charges and exactions,classifications or schedules of rates complained of shall remain in effectsubject to change or refund pending the state corporation commission'sinvestigation and final order.
(3) Any customer of a cooperative wishing to petition the commission pursuantto subsection (g)(1) may request from the cooperative the names, addresses andrate classifications of all the cooperative's customers or of the cooperative'scustomers from any one or more rate classes. The cooperative, within 21 daysafter receipt of the request, shall furnish to the customer the requestednames, addresses and rate classifications and may require the customer to paythe reasonable costs thereof.
(h) (1) If a cooperative is exempt under this section, not less than 10days' notice of the time and place of any meeting of the board of trustees atwhich rate changes are to be discussed and voted on shall be given to allmembers of the cooperative and such meeting shall be open to all members.
(2) Violations of subsection (h)(1) shall be subject to civil penalties andenforcement in the same manner as provided by K.S.A. 75-4320 and 75-4320a, andamendments thereto, for violations of K.S.A. 75-4317 et seq. and amendmentsthereto.
(i) (1) Any cooperative exempt under this section shall maintain a scheduleof rates and charges at the cooperative headquarters and shall make copies ofsuch schedule of rates and charges available to the general public duringregular business hours.
(2) Any cooperative which fails, neglects or refuses to maintain such copiesof schedule of rates and charges under this subsection shall be subject to acivil penalty of not more than $500.
(j) A cooperative that has elected to be exempt under the provisions ofsubsection (b) shall include a provision in its notice to customers, eitherbefore or after a rate change, of the customer's right to request thecommission to review the rate change, as allowed in subsection (g).
(k) Notwithstanding any provision of law to the contrary, a cooperative, asdefined in subsection (a), shall be subject to the provisions of the renewableenergy standards act.
History: L. 1992, ch. 231, § 1;L. 2002, ch. 27, § 3;L. 2009, ch. 141, § 26; May 28.