66-128e. Adjustment of revenue requirements of utilities by commission; exclusion of finance charges attributable to inefficiency or lack of prudence; electric utility borrowing for payment of dividen
66-128e
66-128e. Adjustment of revenue requirements of utilities bycommission; exclusion of finance charges attributable to inefficiency orlack of prudence; electric utility borrowing for payment of dividends;exception for certain utility facilities.In the event the commission finds that a portion of the costswere attributable either to investment in excess capacity which were incurreddue to lack of prudence in facility planning or were incurred due to lackof prudence in plant acquisition, construction or operation, the commissionshall exclude that portion of the carrying or finance charges incurredafter the date of its finding, and nopart of the carrying or finance costs excluded shall ever be or becomepart of the reasonable value of public utility property so used and requiredto be used.For the purposes of this section only, a finding of lack of prudence incapacity planning for a facility which in whole or in part represents excesscapacity shall not be made by the commission when a siting permitauthorizing the construction of the facility has been issued under K.S.A.66-1,162 and amendments thereto prior to the passage of this act. The commissionalso shall not authorize the recovery asoperating expense or in any other manner of the carrying or finance costsso excluded.
Nothing in this act shall limit the commission's authority to adjustrevenue requirements of any public utility if thecommission determines the revenue requirement requested results in wholeor in part from inefficiency or a lack of prudence.
If the commission determines that a public utility, which generates andsells electricity as its main activity, has borrowed funds in order to paydividends and such borrowing as the result of lack of prudence, increasesthe revenue requirement of the utility, the commission may adjust the revenuerequirement accordingly.
History: L. 1984, ch. 247, § 6; April 19.