66-1237. Electric utility recovery of certain transmission costs.
66-1237
66-1237. Electric utility recovery of certaintransmission costs.(a) Any electric utility subject to the regulation of thestatecorporationcommission pursuant to K.S.A. 66-101, and amendments thereto, may seek torecovercosts associated with transmission of electric power,in a manner consistent with the determination oftransmission-related costsfrom an order of a regulatory authority having legal jurisdiction,through aseparate transmission delivery charge included in customers' bills. Theelectric utility's initial transmission delivery charge resulting from thissection may be determined by the commission eitherfrom transmission-relatedcosts approved in the electric utility'smost recent retail ratefiling or in an order establishing rates in response to a general retailrate application by an electric utility.
(b) If an electric utility elects to recover its transmission-relatedcosts througha transmission delivery charge,such electric utility shall have the right to implement a transmissiondelivery charge through an application to the commission.
(1) If an electric utility proposes to establish its initial transmissiondelivery charge other than in connection with an application to the commissionthat proposes a general retail rate changethe commission shall, effective the same dateas the effective date ofthe initial transmission delivery charge, unbundle theelectric utility'sretail rates in such a manner thatthe sum of the revenue to be recovered fromthe initialtransmission delivery charge and thenon-transmission-related retail rates will be consistent with the revenuethat wouldbe recovered from theretail rates ineffect immediatelyprior to the effective date of the initial transmission delivery charge.
(2) If an electric utility proposes to establish its initial transmissiondelivery charge in connection with an application to the commission for ageneral retail rate change, the commission shall, in its order in such rateproceeding, determine the electric utility's transmission-related costsrelated to its service to Kansas retail customers and determine an initialtransmission delivery charge sufficient to permit the electric utility torecover from its Kansas retail customers such utility's transmission-relatedcosts incurred to provide service to such customers.
(c) All transmission-relatedcosts incurred by an electric utility and resulting from anyorder of aregulatoryauthority having legaljurisdiction over transmission matters, including orders setting rates on asubject-to-refund basis, shall be conclusively presumed prudentfor purposes of thetransmission delivery chargeand an electric utility may change its transmission delivery chargewhenever there isa change in transmission-related costs resulting from such an order.The commission may also order such a change if the utility fails to doso.An electricutility shall submit a report to the commissionat least 30 business days before changing the utility's transmissiondelivery charge. If the commission subsequently determines that all or part ofsuch charge did not result from an order described by this subsection, thecommission may require changes in the transmission delivery charge and imposeappropriate remedies, including refunds.
History: L. 2003, ch. 80, § 2;L. 2007, ch. 44, § 1; Apr. 5.