KCC outlines federal-fund uncertainty, docket overhaul costs and regulatory responsibilities

Kansas Corporation Commission leaders briefed the Utilities Committee on budget changes driven by federal program timing, a multi-year docket overhaul and the agency’s regulatory structure.

Luke Drury, senior fiscal analyst with the Legislative Research Department, told the committee that the KCC’s FY2025 request shows a roughly $1.9 million increase in agency fee funds largely attributable to a docket-overhaul project. He also described a projected deletion of about $14.7 million in federal funds for FY2025 and an estimated increase of $25.4 million in federal funds for FY2026; Drury tied those swings to timing and uncertainty around federal programs funded through the Inflation Reduction Act and the Bipartisan Infrastructure Law and to earlier procurement delays.

Andrew French, chair of the Kansas Corporation Commission, described the commission’s mission and divisions and highlighted that the KCC operates without state general funds, relying mainly on assessments, registration fees and operating charges assessed on regulated industries. “We have the responsibility to regulate natural gas, electricity, telephone, commercial motor carriers and also oil and gas producers,” French said, and he stressed that the commission does not generally regulate municipal utilities, most electric cooperatives or wireless and internet services.

Committee members asked about federal funding uncertainty. Drury said an executive order has paused some releases of federal monies related to certain green-energy programs and that appropriations-language authority in state budget bills would remain in place pending federal action. The agency explained that some federal monies anticipated under IRA/BIL have been re‑timed or re‑estimated as federal award timing becomes clearer.

The KCC described several program-level details: the energy division’s expansion of federally funded programs, continued federal funding for an orphaned-well plugging program, and the use of contractual services to administer some large federal grant programs because state staff do not always have grant-administration capacity. The agency also provided enforcement metrics: in FY2024 the commission held 95 business meetings, 17 evidentiary hearings, six public hearings, issued 3,748 orders and recorded penalty orders whose total approaches roughly $1 million; the agency noted those penalties are remitted to the state general fund rather than retained by the commission.

Transportation-division enforcement drew specific questions. Mike Hamey, the KCC transportation director, said the division has intensified compliance work and that many carriers are noncompliant with Unified Carrier Registration and other federal requirements; that enforcement focus has increased the number of penalty orders. Hamey said a high out-of-service rate among targeted carriers (the division cited a 55% noncompliance/out-of-service figure in its remarks) accounts for the increase in enforcement orders.

On energy policy, Senator Bowser asked whether Kansas needs a state strategic energy plan. French said setting a statewide energy strategy is a legislative policy choice and that the KCC’s role is as a traditional utility regulator that reviews and, when necessary, approves cost recovery and resource plans submitted by utilities. He added that no single technology is a clear “silver bullet” and that most analysts favor a diversified mix of resources to meet growing demand.

The committee did not take votes at the hearing; presenters invited follow-up questions and emphasized the continuing uncertainty tied to federal program timing and the administrative work needed to implement large federal grants.