Substitute for SENATE BILL No. 545*
An Act relating to public utilities; concerning
public right-of-way and certain fees and costs;
providing for recovery of certain costs of security
measures of certain public utilities.
Be it enacted by the Legislature of the State of Kansas:
Section 1. As used in sections 1
and 2, and amendments thereto:
(a) ``Public right-of-way'' means only
the area of real property in
which the city has a dedicated or acquired right-of-way interest in
real property. It shall include the area on, below or above the
and future streets, alleys, avenues, roads, highways, parkways or
vards dedicated or acquired as right-of-way. The term does not
the easements obtained by utilities or private easements in platted
divisions or tracts.
(b) ``Public utility'' means all public
utilities as defined in K.S.A. 66-
104, and amendments thereto, except that it does not include any
utilities included in the definitions set forth in K.S.A. 66-1,187,
Sec. 2. (a) Without prejudice to a
public utility's other rights and
authorities, a public utility which is assessed by a city and
remits fees associated with the utility's use, occupancy or
such utility's facilities in the public right-of-way may file a
tariff with the
state corporation commission to add to such utility's end-user
bill, statement or invoice a surcharge equal to the pro rata share
(b) Costs which are incurred by a public
utility in excess of those
normal and reasonable costs incurred by a public utility applying
utility practices due to actions of a city's governing body may
file a tariff
with the state corporation commission to add to the bill, statement
invoice of each end-user customer located within such city through
surcharge equal to a pro rata share of such costs.
(c) For purposes of this section and
section 2, and amendments
thereto, costs shall not include expenses specifically covered by
cost recovery mechanism in existence as of April 1, 2002, including
not limited to franchise fees and relocation expenses.
(d) The fees and costs incurred by the
utility identified in subsections
(a) and (b) in excess of the amount included in the utility's
shall be subject to review by the state corporation commission upon
for recovery of the costs in a surcharge. Upon a finding by the
that (1) the fees included for recovery in such surcharge were
to be paid by the utility as the result of action of the governing
a city, (2) the costs were incurred as a result of action of the
body of such city, (3) such costs were reasonably incurred to meet
requirements imposed by the governing body of such city and (4)
surcharge is applied to bills in a reasonable manner and is
substantially collect the increase in fees and costs charged on the
and records of the utility, or reduce any existing surcharge based
decrease in fees and costs incurred on the books and records of the
the commission shall approve such tariffs within 30 days of the
the commission determines that the surcharge is not applied to
bills in a
reasonable manner, the costs or portions thereof do not meet the
requirements or that the calculation is not adequately supported by
documentation provided in the filing, the commission, at its
either disapprove such tariff within 30 days of the filing and
submission by the utility, suspend the effective date of the tariff
additional 60 days to receive appropriate documentation from the
and/or modify such tariff in a manner that recovers in a reasonable
ner the costs or portions thereof which meet the above
Any over or under collection of the actual fees and costs charged
pense on the books of the utility shall be either credited or
through the surcharge in subsequent periods. The establishment of
surcharge under this section shall not be deemed to be a rate
for purposes of this act.
(e) Upon the filing of a tariff with the
corporation commission pur-
suant to this act, the utility shall deliver to the affected city a
copy of the filing. Such copy shall be delivered within 10 days of
with the corporation commission.
Sec. 3. (a) Section 1, and
amendments thereto, shall affect only such
costs and fees which are incurred between April 1, 2002, and June
(b) The provisions of this section and
sections 1 and 2, and amend-
ments thereto, shall expire on June 30, 2003.
Sec. 4. (a) As used in this
(1) ``Electric public utility'' means any
electric public utility, as de-
fined in K.S.A. 66-101a, and amendments thereto.
(2) ``Natural gas public utility'' means
any natural gas public utility,
as defined in K.S.A. 66-1,200, and amendments thereto.
(b) On and after July 1, 2002, the state
corporation commission, upon
application and request, shall authorize electric public utilities
gas public utilities to recover the utility's prudent expenditures
curity measures reasonably required to protect the utility's
eration and transmission assets or natural gas production and
tation assets by an adjustment to the utility's customers' bills.
application and request shall be subject to such procedures and
tions, including review, in an expedited manner, of the prudence of
expenditures and the reasonableness of the measures, as the
deems appropriate. Such application and request shall be
subject to protective order of the commission.
(c) The provisions of this section shall
expire on July 1, 2004.
Sec. 5. This act shall take effect and be in force
from and after its
publication in the Kansas register.
Approved May 17, 2002.
Published in the Kansas Register May 23, 2002.