Session of 1998
By Committee on Utilities
            9             AN ACT concerning electric cooperative public utilities; relating to juris-
10             diction of the state corporation commission; amending K.S.A. 66-104d
11             and repealing the existing section.
13       Be it enacted by the Legislature of the State of Kansas:
14           Section 1. K.S.A. 66-104d is hereby amended to read as follows:
15       66-104d. (a) As used in this section, ``cooperative'' means any cooperative,
16       as defined by K.S.A. 17-4603 and amendments thereto, which has fewer
17       than 15,000 customers and which provides power principally at retail or
18       any nonstock member-owned cooperative corporation incorporated and
19       providing electric power in the state of Kansas.
20           (b) Except as otherwise provided in subsection (f), a cooperative may
21       elect to be exempt from the jurisdiction, regulation, supervision and con-
22       trol of the state corporation commission by complying with the provisions
23       of subsection (c).
24           (c) To be exempt under subsection (b), a cooperative shall poll its
25       members as follows:
26           (1) An election under this subsection may be called by the board of
27       trustees or board of directors or shall be called not less than 180 days
28       after receipt of a valid petition signed by not less than 10% of the mem-
29       bers of the cooperative.
30           (2) The proposition for deregulation shall be presented to a meeting
31       of the members, the notice of which shall set forth the proposition for
32       deregulation and the time and place of the meeting. Notice to the mem-
33       bers shall be written and delivered not less than 21 nor more than 45
34       days before the date of the meeting.
35           (3) If the cooperative mails information to its members regarding the
36       proposition for deregulation other than notice of the election and the
37       ballot, the cooperative shall also include in such mailing any information
38       in opposition to the proposition that is submitted by petition signed by
39       not less than 1% of the cooperative's members. All expenses incidental
40       to mailing the additional information, including any additional postage
41       required to mail such additional information, must be paid by the sig-
42       natories to the petition.
43           (4) If the proposition for deregulation is approved by the affirmative

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  1       vote of not less than a majority of the members voting on the proposition,
  2       the cooperative shall notify the state corporation commission in writing
  3       of the results within 10 days after the date of the election.
  4           (5) Voting on the proposition for deregulation shall be by mail ballot.
  5           (d) A cooperative exempt under this section may elect to terminate
  6       its exemption in the same manner as prescribed in subsection (c).
  7           (e) An election under subsection (c) or (d) may be held not more
  8       often than once every two years.
  9           (f) Nothing in this section shall be construed to affect the single cer-
10       tified service territory of a cooperative or the authority of the state cor-
11       poration commission, as otherwise provided by law, over a cooperative
12       with regard to service territory, charges for transmission services, sales of
13       power for resale not under the direction of an agency of the federal gov-
14       ernment, wire stringing and transmission line siting, pursuant to K.S.A.
15       66-131, 66-183, 66-1,170 et seq. or 66-1,177 et seq., and amendments
16       thereto.
17           (g) (1) Notwithstanding a cooperative's election to be exempt under
18       this section, the commission shall investigate all rates, joint rates, tolls,
19       charges and exactions, classifications and schedules of rates of such co-
20       operative if there is filed with the commission, not more than one year
21       after a change in such cooperative's rates, joint rates, tolls, charges and
22       exactions, classifications or schedules of rates, a petition signed by not
23       less than 5% of all the cooperative's customers or 3% of the cooperative's
24       customers from any one rate class or by not less than 40% of the members
25       of a generation and transmission cooperative. If, after investigation, the
26       commission finds that such rates, joint rates, tolls, charges or exactions,
27       classifications or schedules of rates are unjust, unreasonable, unjustly dis-
28       criminatory or unduly preferential, the commission shall have the power
29       to fix and order substituted therefor such rates, joint rates, tolls, charges
30       and exactions, classifications or schedules of rates as are just and reason-
31       able.
32           (2) The cooperative's rates, joint rates, tolls, charges and exactions,
33       classifications or schedules of rates complained of shall remain in effect
34       subject to change or refund pending the state corporation commission's
35       investigation and final order.
36           (3) Any customer of a cooperative wishing to petition the commission
37       pursuant to subsection (g)(1) may request from the cooperative the
38       names, addresses and rate classifications of all the cooperative's customers
39       or of the cooperative's customers from any one or more rate classes. The
40       cooperative, within 21 days after receipt of the request, shall furnish to
41       the customer the requested names, addresses and rate classifications and
42       may require the customer to pay the reasonable costs thereof.
43           (h) (1) If a cooperative is exempt under this section, not less than 10

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  1       days' notice of the time and place of any meeting of the board of trustees
  2       at which rate changes are to be discussed and voted on shall be given to
  3       all members of the cooperative and such meeting shall be open to all
  4       members.
  5           (2) Violations of subsection (h)(1) shall be subject to civil penalties
  6       and enforcement in the same manner as provided by K.S.A. 75-4320 and
  7       75-4320a, and amendments thereto, for violations of K.S.A. 75-4317 et
  8       seq. and amendments thereto.
  9           Sec. 2. K.S.A. 66-104d is hereby repealed.
10           Sec. 3. This act shall take effect and be in force from and after its
11       publication in the statute book.