HOUSE BILL No. 2374*
An Act concerning public utilities;
relating to procedures to recover certain security
Be it enacted by the Legislature of the State of Kansas:
Section 1. This act may be cited as
the Kansas energy security act.
Sec. 2. The legislature finds
(a) Actual and threatened acts of
terrorism directed at the American
people make it clear that government must take enhanced measures
protect its citizens and provide for greater security of services
to the public welfare.
(b) The threat of terrorism extends to
utilities that provide basic serv-
ices upon which individual citizens, schools, hospitals, nursing
care centers, businesses and industry rely.
(c) Under these extraordinary
circumstances, practices and proce-
dures that would otherwise apply in regulatory proceedings shall
per the government in performing its most basic purposes: Providing
the security of its citizens and protecting the public welfare.
Sec. 3. (a) In adopting procedures
applicable in proceedings pursu-
ant to K.S.A. 66-1233, and amendments thereto, the state
commission shall provide for:
(1) Confidentiality of information so
that the amount of recovery re-
quested, the amount of recovery allowed, the method of cost
requested and the method of cost recovery allowed is not
(2) protective orders for all filings so
that the citizens' utility ratepayer
board may receive and review documents if the board intervenes;
(3) procedures to reflect rules of the
United States nuclear regulatory
commission or other regulatory bodies that govern the release of
mation and documentation which an applicant is required to submit
support the application or supply to the commission, commission
(4) the security cost recovery charge to
be unidentifiable on custom-
(5) the security cost recovery charge
shall be allocated and added to
all wholesale and retail rates and future contracts. Any contract
on the effective date of this act, which does not specifically
addition of such charges, shall have such charges added;
(6) review of security-related filings in
an expedited manner with ref-
erence only to security-related items to assure that the proposed
provide enhanced security;
(7) denial of any expenditure that the
commission determines is not
prudent or is not for security measures and approval of all other
(8) recovery of capital expenditures over
a period equal to not more
than 1/2 the usable lifetime of the capital investment.
(b) A determination by the commission of
the prudence of an ex-
penditure for security measures shall not be based on standard
principles and methods of recovery and shall take fully into
findings and intent of the legislature as stated in section 2, and
(c) The provisions of this act and K.S.A.
66-1233, and amendments
thereto, shall apply recovery of prudent expenditures for enhanced
curity incurred after September 11, 2001.
Sec. 4. This act shall take effect and be in force
from and after its
publication in the Kansas register.
Approved April 21, 2003.
Published in the Kansas Register May 1, 2003.