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Minutes for SB455 - Committee on Energy, Utilities and Telecommunications
Short Title
Authorizing electric public utilities to retain certain electric generating facilities in the utility's rate base, prohibiting the state corporation commission from authorizing the retirement of fossil fuel-fired electric generating facilities unless certain requirements are met, requiring the commission to report annually on retirements of fossil fuel-fired facilities and revising commission procedures when conducting proceedings for predeterminations of ratemaking principles and treatment.
Minutes Content for Thu, Mar 14, 2024
Chairman Delperdang opened the hearing on SB455.
Nick Myers provided an overview of the bill (Attachment1) and the balloon amendment.(Attachment2) Mr. Myers responded to questions from the committee members.
Chair recognized proponent testimony as follows:
Jason Klindt, Evergy (Attachment3) who testified in support of the bill as amended. Mr. Klindt said before going further on the bill he wanted to mention that Evergy is proud of its coal-fired, natural gas and nuclear generation facilities, they are workhorses that provide a reliable form of flexible and dispatchable energy that other sources of generation simply cannot replace. Mr. Klindt explained the bill allows for a fossil-fuel plant to run less but still be available during winter and summer peaks when needed for reliability that would provide flexibility in how Evergy manages its generation fleet.
Eric Stafford, Kansas Chamber (Attachment4) who testified in support of the bill as amended. Mr. Stafford added the bill would set clear guidelines for the corporation commission to follow to consider the impact on ratepayers by a utility's decision to retire a fossil fuel electric generation facility.
Jim Zakoura, Kansans for Lower Electric Rates (KLER) and Kansas Industrial Consumer Group (KIC) (Attachment5) who testified in support of the bill as amended. Mr. Zakoura explained the bill is straight forward approach to ensure that fossil fuel generating assets that customers have paid for will not be prematurely retired or abandoned without thorough consideration by the Kansas Corporation Commission (KCC). He added concerns about electric generation capacity has grown considerably since Winter Storm Uri in 2021, the bill simply provides certainty to all stakeholder, including customer, that Kansas will have sufficient generating resources in the future.
Reagan McCloud, Kansas Electric Cooperatives, Inc. (Attachment6) who testified in support of the bill as amended. Mr. McCloud said grid reliability cannot be taken for granted, it requires a diverse mix of dispatchable generation resources, robust physical and cyber security protections, and crucial and timely investments into electric infrastructure. He added while renewable generation sources play an increasing role in our electric grid, base-load, always available power remains the bedrock to grid reliability.
David Nickel, Citizens Utility Ratepayer Board (CURB) (Attachment7) who testified in support of the bill as amended. Mr. Nickel explained CURB believes that the bill attempts to protect residential and small commercial ratepayers from a utility's abandonment of a fossil-fuel fired electric generating unit when it would result in less reliability and higher costs.
The conferees responded to questions from committee members.
Chair recognized opponent testimony:
Zack Pistora, Kansas Sierra Club (Attachment8) who testified as an opponent of the bill. Mr. Pistora explained the bill is highly unnecessary because utilities and regulators already consider a robust set of criteria relating to reliability and rate impacts in their evaluations of utility plans, generating units, power plant retirement, and rate recovery thereof.
The conferee responded to questions from committee members.
Chair recognized neutral testimony:
Jeff McClanahan, Kansas Corporation Commission (KCC) (Attachment9) who testified as neutral on the bill as amended. Mr. McClanahan explained the KCC staff's original concerns were addressed by the proposed balloon amendment and continues to view the bill as a policy decision for the legislature.
The conferee responded to questions from the committee members.
Chairman Delperdang asked the committee for any further questions.
Chair closed the hearing on SB455.
The next committee meeting is scheduled for Tuesday March 19.
March 21, Southwest Power Pool and KCC will be here providing information on Kansas Electric Generation, Future Regional Electric Transmission Projects and Transmission Cost Allocation.
Chair adjourned the meeting at 10:22am.
