KCC budget hearing spotlights docket-system overhaul, federal grant timing and ETC backlog

At a legislative budget hearing, analysts from the Kansas Legislative Research Department and Kansas Corporation Commission (KCC) officials reviewed the KCC’s fee-funded budget, saying the agency plans to continue a multi-year overhaul of its docket management system and is adjusting federal grant estimates tied to recent federal infrastructure and energy legislation.

The presentation to the committee by Luke Drury, senior fiscal analyst, said the KCC’s FY2025 budget includes a fee-fund increase of about $1,900,000 "mostly attributable to the, contractual services as it specifically relates to updating the agency's docket system." Drury told the committee that the increase was delayed from an earlier fiscal year because of procurement problems and is expected to be largely expended in FY2025.

The hearing also covered changes in federal funding estimates. Drury said the agency is deleting about $14,700,000 in federal funds from the FY2025 estimate, largely because of uncertainty and timing related to the Inflation Reduction Act and the Bipartisan Infrastructure Law, and because some prior budgeted funds were tied to federal initiatives that are not active. He also said one prior-cycle budgeting error of about $3,200,000 was zeroed out. For FY2026, Drury said the KCC is projecting an increase of $25,400,000 in federal funds as some federal initiatives are expected to roll into that year.

KCC Chair Andrew French gave a high‑level overview of agency structure and duties, describing the commission as ‘‘a quasi judicial agency’’ that must manage and make accessible filings and records for proceedings. He described the docket-management system as "basically a software, a piece of software, that needs to be customized to our particular needs to receive filings, to interface with the public, to interface with our stakeholders, and then to make those documents available on our website." The commission reported it is coordinating project reporting through JCIT/OITS and will provide quarterly updates per IT project reporting requirements.

Committee members pressed KCC staff about a growing backlog of ETC (eligible telecommunications carrier) designation applications in the utilities division. Jeff McClanahan, director of the utilities division, said the agency "does have a backlog" of ETC applications and that staffing turnover left much of the telecommunications team inexperienced. He said the division has five staff assigned to telecommunication work, with two considered to have prior relevant experience, and that many ETC dockets are being handled alongside other docket types rather than by dedicated ETC staff. McClanahan said the division had hired a consultant who became unavailable and that the KCC is seeking another consultant to help clear the backlog.

Representatives on the committee asked the KCC to provide a report on the backlog, including a timeline and suggested remedies. The committee chair asked for a report and the KCC agreed: "Okay. We'll we'll put together that report for the committee," Drury said.

Other budget details noted to the committee: the KCC’s budget is primarily fee and federal funded and contains no State General Fund appropriations; the agency proposed a reduction of 0.25 FTE in all-other adjustments; and the agency provided historical tables showing large recent percentage changes in expenditures tied in part to orphaned-well plugging programs funded from federal sources.

The committee did not take a formal vote on the KCC budget during the hearing. Instead, members asked for follow-up detail and for the KCC to provide the requested backlog report and regular JCIT project updates.

The hearing then moved to the Citizens Utility Ratepayer Board (CURB) presentation.