Bill > SB289

This bill modifies existing Kansas law regarding economic development electric rate discounts offered by public utilities, introducing a key requirement that starting July 1, 2025, any new discounted electric rates must cover the actual incremental and variable costs of serving the customer. The bill maintains existing provisions that allow electric utilities to offer rate discounts to new or expanded industrial or commercial facilities that meet specific criteria, such as having a minimum peak electricity demand (ranging from 200 kilowatts to 25 megawatts) and maintaining certain load factors. The discounts can be applied for up to five or ten years, depending on the facility's size and characteristics, with discount percentages varying from 5% to 50% depending on the facility type. The bill also requires the Kansas Corporation Commission to provide biennial reports to the legislature detailing the economic impact of these discounted rates, including information about the number of entities receiving discounts, changes in load, total subsidies, and economic development outcomes. Additionally, the bill limits the implementation of large facility discounts (those qualifying under the 25 megawatt category) until December 31, 2030, with a potential extension to December 31, 2036, subject to commission approval. The goal of these provisions is to support economic development while ensuring that utility rate discounts do not unfairly burden other ratepayers.

Transportation and Infrastructure

Federal and State Affairs (Senate)

https://kslegislature.gov/li/b2025_26/measures/sb289/