An Act concerning transmission of electric power; relating to siting of certain transmission
lines; concerning recovery of certain costs of certain utilities; amending K.S.A. 66-1,180
and repealing the existing section.

Be it enacted by the Legislature of the State of Kansas:

      Section  1. K.S.A. 66-1,180 is hereby amended to read as follows: 66-
1,180. All hearings conducted pursuant to this act shall be in accordance
with the provisions of the Kansas administrative procedure act. All such
hearings shall be completed within 30 days after the commencement
thereof, unless the electric utility requests a continuance of any such
hearing. All costs of any hearing pursuant to this act shall be taxed against
the electric utility. The commission shall make its decision with respect
to the necessity for and the reasonableness of the location of the proposed
electric transmission line and, taking into consideration the benefit to both
consumers in Kansas and consumers outside the state and economic de-
velopment benefits in Kansas. The commission shall issue or withhold the
permit applied for. The commission and may condition such permit as it
the commission may deem just and reasonable and as may, in its judg-
ment, best protect the rights of all interested parties and those of the
general public.

      New Sec.  2. (a) Any electric utility subject to the regulation of the
state corporation commission pursuant to K.S.A. 66-101, and amend-
ments thereto, may seek to recover costs associated with transmission of
electric power, in a manner consistent with the determination of trans-
mission related costs from an order of a regulatory authority having legal
jurisdiction, through a separate transmission delivery charge included in
customers' bills. The electric utility's initial transmission delivery charge
resulting from this section shall be determined by the commission from
transmission-related costs approved in the electric utility's most recent
retail rate filing. If an electric utility elects to recover its transmission-
related costs through a transmission delivery charge, the commission
shall, effective the same date as the effective date of the initial transmis-
sion delivery charge, reduce the electric utility's retail rates to such a level
that the sum of the revenue recovered from such retail rates and the
initial transmission delivery charge is equal to the revenue recovered from
the retail rates in effect immediately prior to the effective date of the
initial transmission delivery charge.

      (b) All transmission-related costs incurred by an electric utility and
resulting from an order of a regulatory authority having legal jurisdiction
over transmission matters shall be conclusively presumed prudent for
purposes of the transmission delivery charge and an electric utility may
change its transmission delivery charge whenever there is a change in
transmission-related costs resulting from such an order. An electric utility
shall submit a report to the commission at least 30 business days before
changing the utility's transmission delivery charge. If the commission sub-
sequently determines that all or part of such charge did not result from
an order described by this subsection, the commission may require
changes in the transmission delivery charge and impose appropriate rem-
edies. The retail rates in effect at the time an electric utility changes its
transmission delivery charge shall not be subject to review or change as
a result of a change in the transmission delivery charge.

 Sec.  3. K.S.A. 66-1,180 is hereby repealed.

 Sec.  4. This act shall take effect and be in force from and after its
publication in the statute book.

Approved April 16, 2003.