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Senate committee approves bill letting cooperative-owned utility escape KCC rate regulation
Summary
Senators advanced SB 348, which would exempt a not-for-profit, cooperative-owned utility (Southern Pioneer Electric Company) from Kansas Corporation Commission jurisdiction and return certain governance to its parent cooperative; supporters said it corrects an inequitable regulatory burden.
The Committee of the Whole reported SB 348 favorably after Sen. Fagg (Butler) explained the bill would exempt certain nonprofit utilities that are wholly owned subsidiaries of electric cooperatives from Kansas Corporation Commission regulation.
"SB 348 basically enables a Southern Pioneer company, it's a not for profit, to be exempt from the KCC jurisdiction and instead be governed by its parent cooperative," Sen. Fagg said, adding that customers would retain certain protections including KCC backstop authority and notice rights.
Supporters on the floor emphasized local cooperative backing. Sen. Bowser said five electric cooperatives from his district supported the bill; Sen. Clifford described an example in which regulatory delays forced Southern Pioneer to bear tens of thousands in credit card fees for a large-load customer, arguing that local governance would allow faster operational fixes.
Sen. Fagg moved adoption of the committee report and the Committee approved the motion by voice vote. The bill was advanced by the Committee of the Whole and will proceed through the Senate’s floor process.
Next steps: SB 348 is reported favorably and will move forward for final Senate consideration or further action as scheduled.
