Session of 1998
By Senator Brownlee
            9             AN ACT concerning electric public utilities; providing for mitigation of
10             certain costs.
12       Be it enacted by the Legislature of the State of Kansas:
13           Section 1. (a) As used in this section:
14           (1) ``Commission'' means the state corporation commission.
15           (2) ``Competitive transition costs'' means any costs, liabilities and in-
16       vestments that an electric public utility would reasonably expect to re-
17       cover under the regulatory structure existing on the effective date of this
18       act but would not reasonably expect to recover if competition in retail
19       sales of generation service is implemented unless a mechanism for re-
20       covery is specifically authorized by law.
21           (3) ``Electric public utility'' has the meaning provided by K.S.A. 66-
22       101a and amendments thereto.
23           (4) ``Single issue filing'' means an application by an electric public
24       utility to alter, add or eliminate one or more elements of the utility's cost
25       of service for ratemaking purposes outside the scope of a full rate pro-
26       ceeding.
27           (b) Each electric public utility shall have the duty to mitigate com-
28       petitive transition costs.
29           (c) (1) Notwithstanding any other provision of law to the contrary,
30       the commission may approve, propose or endorse performance-based or
31       incentive rate mechanisms as part of the commission's ratemaking process
32       for electric public utilities for the purpose of allowing the greatest possible
33       mitigation of competitive transition costs.
34           (2) The commission shall allow overearnings determined in electric
35       public utility rate cases to be used to mitigate competitive transition costs,
36       provided that such mitigation does not require a rate increase.
37           (3) Electric public utilities may initiate single issue filings with the
38       commission to mitigate competitive transition costs. The commission shall
39       determine whether the effect of a single issue filing is mitigation of com-
40       petitive transition costs. If the effect is determined to be mitigation, the
41       application shall be approved provided it does not cause rates to increase
42       above the levels in effect at the time the single issue filing is filed with
43       the commission.

SB 661


  1           Sec. 2. This act shall take effect and be in force from and after its
  2       publication in the Kansas register.