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Minutes for SB348 - Committee on Energy, Utilities and Telecommunications
Short Title
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.
Minutes Content for Tue, Feb 24, 2026
Chairman Delperdang opened the hearing on SB348.
Nick Myers, Office of Revisor of Statutes, provided an overview of the bill (Attachment1) and responded to questions from the committee members.
Proponents:
Reagan McCloud, Kansas Electric Cooperatives, Inc., KEC, (Attachment2) explained KEC members have discussed at length and stands united in support of the bill. He added the electric cooperatives are different from other utilities, which is why removing cooperatives from Kansas Corporation Commission, KCC, rate regulation corrects a regulatory inequity, reduces unnecessary costs for cooperative members and upholds the cooperative principles that have served Kansas communities so well for decades.
Lindsay Campbell, Southern Pioneer Electric Company (Attachment3) stated the bill would allow Southern Pioneer, as a not-for-profit wholly-owned subsidiary on an electric cooperative, the opportunity to self-regulate from the jurisdiction of the KCC the same as the electric cooperatives. She added Southern Pioneer respects the KCC and appreciate the Commission Staff's willingness to work with them over the years recognizing their unique structure and found ways within current statutory framework to provide Southern Pioneer with reduced regulatory lag for dockets involving revenue requirement rate changes.
No Opponent Testimony
Neutrals:
Justin Grady, Kansas Corporation Commission, KCC, (Attachment4) explained Southern Pioneer does not operate with a traditional profit motive in the same fashion as an Investor-Owned Utility. (IOU) The Commission has regulated Southern Pioneer differently than a traditional IOU, affording Southern Pioneer more flexibility and deference in rate cases, formula rate proceedings, and other regulatory matters. However, there have been times when Southern Pioneer felt it was not receiving enough KCC deference to its managerial decisions, and this has caused friction and frustration at times. He added the KCC worked with Southern Pioneer to add the language which requires KCC approval of any dividend payment, stock repurchase, or direct cash payment from Southern Pioneer to Pioneer for the purpose for transferring Southern Pioneer's Equity to Pioneer to properly protect the Equity in Southern Pioneer.
Joseph Astrab, Citizen's Utility Ratepayer Board, CURB, (Attachment5) believes the focus of the analysis on the bill should be the impact on ratepayers that would be affected with such a change likely to impact rates and services and should be done to reflect the will of the utility's customers, especially residential and small commercial. He added CURB had reservations about the automatic exemption from KCC review aimed towards a specific utility when the bill was first introduced, but since learned the request to be unregulated by the KCC was informed by ratepayer outreach groups and committees.
Conferees responded to questions from the committee members.
WRITTEN ONLY TESTIMONY:
Tom Walters, Southern Pioneer Electric Company Customer Advisory Council (Attachment6)
Caleb Tschetter, National Beef Packing Company (Attachment7)
Chairman Delperdang closed the hearing on SB348.
