66-1239. Electric generating or transmission facility; determination of rate-making principles and treatment; procedure.
66-1239
66-1239. Electric generating or transmissionfacility; determination of rate-making principles and treatment;procedure.(a) As used in this section:
(1) "Commission" means the state corporation commission;
(2) "contract" means a public utility's contract for the purchase ofelectric power inthe amount of at least $5,000,000 annually;
(3) "generating facility" means any electric generating plant or improvementto existing generationfacilities;
(4) "stake" means a public utility's whole or fractional ownership share orleasehold or otherproprietary interest in a generating facility or transmission facility;
(5) "public utility" has the meaning provided by K.S.A. 66-104, andamendments thereto; and
(6) "transmission facility" means: (A) Any existing line, and supportingstructures and equipment, being upgraded for the transfer of electricity withan operating voltage of 34.5 kilovolts ormore of electricity; or (B) any new line, and supporting structures andequipment, being constructed for the transfer of electricity with an operatingvoltage of 230kilovolts or more ofelectricity.
(b) (1) Prior to undertaking the construction of, or participation in, atransmission facility, a publicutility may file with the commission a petition for a determination of therate-making principles andtreatment, as proposed by the public utility, that will apply to the recoveryin wholesale or retail rates of thecost to be incurred by the public utility to acquire such public utility'sstake in the transmission facilityduring the expected useful life of the transmission facility.
(2) The commission shall issue an order setting forth the rate-makingprinciples and treatment that willbe applicable to the public utility's stake in the transmission facility in allrate-making proceedings on andafter such time as the transmission facility is placed in service or the termof the contract commences.
(3) The commission in all proceedingsin which the cost of the public utility's stake in the transmissionfacility is considered shall utilize the rate-making principles and treatmentapplicable to the transmission facility.
(4) If the commission fails to issue a determination within 180 days of thedate apetition for a determination of rate-making principles and treatment is filed,the rate-making principles and treatment proposed by the petitioning publicutility will be deemed to have been approved by the commission and shall bebinding for rate-making purposes during the useful life of the transmissionfacility.
(5) If the commissiondoes not have jurisdiction to set wholesale rates for use of the transmissionfacility thecommission need not consider rate-making principles and treatment for wholesalerates for thetransmission facility.
(c) (1) Prior to undertaking the construction of, or participation in,a generating facility or prior toentering into a new contract, a public utility may file with the commission apetition for a determination of the rate-making principles and treatment, asproposed by the public utility, thatwill apply to recovery in wholesale orretail rates of the costto be incurred by the public utility to acquire such public utility's stake inthe generating facility during theexpected useful life of the generating facility or the recovery in rates of thecontract during the termthereof.
(2) Any utility seeking a determination of rate-making principles andtreatment under subsection (c)(1) shall as apart of its filing submit the following information: (A) A description of thepublic utility'sconservation measures; (B) a description of the public utility's demand sidemanagement efforts; (C)the public utility'sten-year generation and load forecasts; and (D) a description of all powersupply alternatives consideredto meet the public utility's load requirements.
(3) In considering the public utility's supplyplan, the commission may consider if thepublic utility issued a request for proposal from a wide audience ofparticipants willingand able to meet the needs identified under the public utility's generatingsupply plan,and if the plan selected by the public utility is reasonable, reliable andefficient.
(4) The commission shallissue an order setting forth the rate-making principles and treatment that willbe applicable to the public utility's stake in the generating facility or tothe contractin all rate-making proceedings onand after such time as the generating facility is placed in service or the termof thecontract commences.
(5) The commission in all proceedings in which the cost of the publicutility's stake in the generating facility or thecost of the purchased power under the contract is considered shall utilize therate-making principles andtreatment applicable to the generating facility or contract.
(6) If the commission fails to issue a determination within 180 days of thedate apetition for a determination of rate-making principles and treatment is filed,the rate-making principles and treatment proposed by the petitioning publicutility will be deemed to have been approved by the commission and shall bebinding for rate-making purposes during the useful life of the generatingfacility or during the term of the contract.
(d) The public utility shallhave one year from the effective date of the determination of the commission tonotify the commission whether it will construct or participate in theconstruction of the generating or transmission facility or whether itwill perform under terms of the contract.
(e) If the public utility notifies the commission within the one-year periodthat the public utility will notconstruct or participate in the construction of the generating or transmissionfacility or that it willnot perform under the terms of thecontract, then the determination of rate-making principles pursuant tosubsection (b) or (c) shall be of no furtherforce or effect, shall have no precedential value in any subsequent proceeding,and there shall be noadverse presumption applied in any future proceeding as a result of suchnotification.
(f) If the public utility notifies the commission under subsection (d) thatit willconstruct or participate in a generatingfacility or purchase power contract and subsequently does not, it will berequired to notify the commissionimmediately and file an alternative supply plan with the commission persubsection (c)within 90 days.
History: L. 2003, ch. 148, § 1;L. 2004, ch. 120, § 9; July 1.