66-104f. Jurisdiction over municipal electric or natural gas public utilities; limitations.
66-104f
66-104f. Jurisdiction over municipal electric ornatural gas public utilities; limitations.(a) The rates, charges and terms and conditions ofservice of amunicipally owned or operated electric or natural gas public utility for retailservicesprovided outside of and more than three miles from the corporate limits of themunicipality shall not be subject to the jurisdiction, regulation, supervisionor control ofthe state corporation commission, except as provided in subsection (b), if:
(1) The customers served in such area number no more than 40% of the totalnumber of customers served by such utility;
(2) the rates and charges for customers in such area are no greater than theratesand charges for the customers served by such utility within the corporatelimits of themunicipality and the terms and conditions of service are the same. However,after theeffective date of this act, the rates and charges for customers in such areamay not beincreased more than 10% each calendar year until such rates and charges areequal to therates and charges for customers within the corporate limits of themunicipality;
(3) not lessthan 10days in advance of any meeting at which changes to the rates, charges or termsandconditions of service will be considered,the municipal entity with authority to determine the utility's rates,chargesand terms and conditions of service provides customers in such areaboth notice of the time and place ofsuchmeeting and a description of the changes to be considered. The notice shallalso includea statement concerning the right to petition the commission as set forth insubsection (b);
(4) the municipality furnishes, within 21 days after the receipt of a requestforsuch information, the names, addresses and rate classifications of customers insuch area;and
(5) the municipality provides to the commission an annual report on or beforeMay 1 stating the number of customers served in such area and the total numberof customers served as of the end of the preceding calendar year.
(b) If, not more than one year after a change in rates, charges or terms andconditions of service for services provided in the area described in subsection(a), there isfiled with the commission a petition signed by not less than 25% of thecustomers in sucharea protesting such change, the commission shall investigate all rates,charges and termsand conditions of service for services in such area. The change shall remainin effect,subject to new rates, charges and terms and conditions, pending thecommission'sinvestigation and final order. If, after investigation, the commission findsany rate,charge or term or condition of service to be unjust, unreasonable, unjustlydiscriminatoryor unduly preferential, the commission shall have the power to fix and ordersubstitutedtherefore such rates, charges and terms and conditions of service as are justandreasonable and may also require refunds of any unjust, unreasonable, unjustlydiscriminatory or unduly preferential rates or charges. In determining thereasonablenessand justness of rates and charges, the commission may consider whether therates orcharges reflect operating margins that allow the municipality to unreasonablyuserevenues derived from the operation of the utility outside of and more thanthree milesfrom the corporate limits of such municipality for other municipal operationsor uses.
(c) Nothing in this act shall be construed to affect the single certifiedserviceterritory of a municipally owned or operated utility or the authority of thecommission, asotherwise provided by law, over such utility with regard to service territory,charges fortransmission services, sales of power for resale, wire stringing, transmissionline siting, pipeline safety and underground utility damage prevention,pursuant to K.S.A. 66-131, 66-183, 66-1,150 et seq., 66-1,170 et seq.,66-1,177 et seq. and 66-1801 et seq., andamendments thereto.
History: L. 2007, ch. 176, § 1; July 1.