Session of 1999
By Committee on Utilities

  9             AN  ACT concerning certain nonprofit public utilities; amending K.S.A.
10             66-104c and repealing the existing section.
12       Be it enacted by the Legislature of the State of Kansas:
13             Section  1. K.S.A. 66-104c is hereby amended to read as follows: 66-
14       104c. (a) Except as otherwise provided in subsection (b), no nonprofit
15       public utility shall be subject to the jurisdiction, regulation, supervision
16       and control of the state corporation commission if the utility meets the
17       following conditions:
18             (1) Every customer, household or meter owner is an automatic owner
19       is a shareholder of the utility and has an equal vote on matters concerning
20       the utility;
21             (2) the utility employs no more than two full-time employees to carry
22       out the purpose of a nonprofit public utility; and
23             (3) either: (A) The utility has no more than 50 250 customers; or (B)
24       the utility has more than 250 customers as the result of a merger author-
25       ized by the state corporation commission pursuant to subsection (c).
26             (b) The state corporation commission shall retain jurisdiction and
27       control over the service territory of a utility described in subsection (a)
28       and over all matters concerning natural gas pipeline safety.
29             (c) Any two or more nonprofit public utilities that meet the criteria
30       of subsection (a) may apply to the state corporation commission for au-
31       thorization to merge. Not more than 120 days after receipt of the appli-
32       cation, the commission shall make a determination whether to authorize
33       the merger. The commission shall authorize the merger only if:
34             (1) The combined utilities will have no more than 250 customers; or
35             (2) the fiscal condition of at least one of the utilities makes failure of
36       such utility likely and the failure would create an undue hardship for
37       customers to meet their energy needs. 
38       Sec.  2. K.S.A. 66-104c is hereby repealed.
39        Sec.  3. This act shall take effect and be in force from and after its
40       publication in the statute book.