KansasSB 3482025–2026 Regular SessionSenate

Exempting any electric public utility that is a not-for-profit wholly owned subsidiary of an electric cooperative public utility from the jurisdiction of the state corporation commission.

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 3 benefits, 1 costs, 1 mixed.

Customers can restore state utility oversight

Customers can seek an election to end their utility's exemption by filing a petition with the parent cooperative's board. At least 10% of customers must sign. The proposal must be presented at an open meeting in the utility's service area, with written notice to cooperative members and utility customers 21–45 days beforehand. The exemption ends if a majority of customers voting by mail ballot approve. The cooperative must report results to the Commission within 10 days, and elections can occur no more than once every two years.

Customers get rate notices and access

Exempt utilities must give retail customers at least 10 days' notice before meetings to discuss and vote on rate changes. Notices must state the time and place, and parent-cooperative meetings must be open to the utility's customers. Meeting-rule violations face enforcement and civil penalties under Kansas open-meetings laws. Utilities must also keep rate and charge schedules at headquarters, with copies available to the public during regular business hours. The Commission can fine utilities up to $500 per violation of the rate-schedule requirement.

State safeguards remain for exempt utilities

The Kansas Corporation Commission keeps its existing powers over service areas, required operating certificates, transmission-line siting, wire stringing, and relief petitions. It also keeps oversight of specified transmission charges, except federally approved charges recovered through a regional transmission organization's open-access tariff. Power sales for resale remain covered, except sales between the exempt utility and a qualifying non-retail utility owned and governed by four or more electric cooperatives. Exempt utilities must still follow the Kansas Renewable Energy Standards Act. They need Commission approval for dividends, stock buybacks, or direct cash payments intended to transfer equity to their parent cooperative.

Less state oversight for qualifying utilities

The law removes most Kansas Corporation Commission oversight from qualifying electric utilities. The utility must be a nonprofit wholly owned by a corporation organized under the Kansas Electric Cooperative Act. It must also provide retail electric service in Kansas. Separate rules preserve specific state powers and customer protections. The law takes effect upon publication in the Kansas Register.

Customers can seek state rate reviews

Exempt-utility customers can petition the Kansas Corporation Commission to investigate changed rates, charges, rate classes, or schedules within one year. Signatures must cover at least 5% of all customers or 3% of customers in one rate class. Rates stay in effect during review, subject to change or refund; the Commission can replace unjust, unreasonable, discriminatory, or preferential terms. Customers preparing a petition can request customer names, addresses, and rate classes. The utility must provide that information within 21 days but may charge reasonable costs.

Sponsors & Cosponsors

Sponsor

Committee on Utilities
Affiliation unavailable

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 314 • No: 0

Senate vote • 4/23/2026

Yea: 38 Nay: 0

Yes: 38 • No: 0

Senate vote • 4/23/2026

Yea: 119 Nay: 0

Yes: 119 • No: 0

House vote • 3/3/2026

Final Action - Passed