Bill Summary – FastDemocracy

Division of the Budget
Landon State Office Building                                                                        Phone: (785) 296-2436
900 SW Jackson Street, Room 504                                                                     larry.campbell@ks.gov
Topeka, KS 66612                                Division of the Budget                             http://budget.kansas.gov
Larry L. Campbell, Director                                                                       Laura Kelly, Governor


                                                   March 11, 2019


         The Honorable Ty Masterson, Chairperson
         Senate Committee on Utilities
         Statehouse, Room 224-E
         Topeka, Kansas 66612
         Dear Senator Masterson:
                   SUBJECT:       Fiscal Note for SB 198 by Senate Committee on Utilities
                 In accordance with KSA 75-3715a, the following fiscal note concerning SB 198 is
         respectfully submitted to your committee.
                  SB 198 would give the Kansas Corporation Commission (KCC) the authority to oversee
         and authorize the issuance of low-cost ratepayer-backed securitized bonds (K-EBRA bonds) in
         order to finance the retirement of existing generating assets in the state and any replacement
         generation facilities necessary to replace the lost capacity and energy from the retired generation
         facilities. The bill would require that the proceeds of these bonds be used to lower rates paid by
         electric utility customers by reducing costs of certain retired generating facilities; provide
         transition assistance to Kansas communities and electric generation facility workers that would be
         directly affected by the retirement of these facilities; make available capital investment for
         renewable facilities and services; and pay for reviews by the KCC and independent credit rating
         agencies as necessary to achieve the highest possible bond ratings. The bill specifies how these
         requirements would be accomplished.

                                            Estimated State Fiscal Effect
                                       FY 2019         FY 2019            FY 2020           FY 2020
                                        SGF            All Funds           SGF              All Funds
            Revenue                             --                 --             --            $500,000
            Expenditure                         --                 --             --            $500,000
            FTE Pos.                            --                 --             --                   --
The Honorable Ty Masterson, Chairperson
Page 2—SB 198

       According to the Kansas Corporation Commission, enactment of SB 198 would result in
$500,000 in expenditures for outside consulting and legal fees necessary to review each application
and meet the statutory standards set out in the bill. These expenditures would be paid from
financing costs that would be included in the K-EBRA charge. Any fiscal effect associated with
SB 198 is not reflected in The FY 2020 Governor’s Budget Report.


                                                     Sincerely,

                                                     Larry L. Campbell
                                                     Director of the Budget


cc: Jake Fisher, KCC