Industry group tells Senate Utilities Committee energy storage is ‘here’ and urged clear tax, safety rules

Representatives of the Kansas Advanced Power Alliance told the Senate Utilities Committee that utility‑scale energy storage is arriving rapidly in Kansas, is already providing operational benefits in the state, and warrants clear tax and safety treatment by state and local authorities.

“Because energy storage is here, and it genuinely is, beginning to transform the utility space,” said Kimberly Genscher Swati, who identified herself as representing the Kansas Advanced Power Alliance. Swati said a community‑owned 4‑megawatt battery system in Minneapolis, Kansas, has operated positively for about two years and has performed in ways not anticipated when installed.

Swati and a colleague, identified in the transcript as Josh, described how most near‑term utility‑scale installations are containerized battery racks (commonly lithium‑ion chemistries such as iron phosphate) that are clustered on‑site; she said the industry expects rapidly evolving chemistries and longer duration systems in coming years. Josh said the highest near‑term value for storage is at transmission choke points, adjacent to large substations and near generation sites, where batteries can absorb excess generation during low‑price periods and dispatch energy during peak demand.

The presenters cited national and regional trends: a large share of generator interconnection requests involve hybrid and storage projects, and Texas in particular has added large amounts of storage capacity and used it to reduce volatility and help avoid calls for conservation. Swati noted that on March 10 the Texas grid re‑injected about 4,955 megawatts of stored energy and said storage contributed to roughly $750 million in ratepayer savings in recent reporting cited to the committee. The presenters also described longer‑duration storage technologies under development and non‑battery thermal approaches that industrial customers may adopt.

On policy issues, Swati said Kansas currently treats generation and transmission assets as eligible for a 10‑year property tax exemption while Department of Revenue guidance treats storage as machinery and equipment with a different (lifetime) exemption. She urged parity — a 10‑year property tax treatment for storage — to align tax treatment across generation, transmission and storage.

On safety and siting, presenters recommended counties and municipalities adopt the National Fire Protection Association code for stationary energy storage (NFPA 855) and noted that most projects will follow a county permitting process or conditional‑use review; presenters emphasized that projects are voluntary agreements with willing landowners and are not subject to eminent domain. Committee members asked technical and operational questions, including about round‑trip efficiency and how 2‑ to 4‑hour systems are actually used to deliver value. The presenters recommended model policies, fact sheets and codes to help local governments review proposals.

Committee members did not take formal action on energy storage during the hearing; the session concluded after a question period and committee housekeeping.