The bill establishes a framework for adjusting the return on equity for electric public utilities in Kansas based on their all-in average retail rates. If an electric public utility demonstrates to the state corporation commission that its average retail rate has not increased by more than 1% in the previous calendar year, the commission may authorize an increase in the utility's return on equity by up to 0.5%. Conversely, if the utility's average retail rate has increased by more than 1%, the commission may order a decrease in the return on equity by up to 0.5%. These adjustments will be valid for a period of 12 months following the commission's order.

Additionally, the bill mandates that the state corporation commission amend the retail rates of the electric public utility to reflect any changes ordered under this section. The term "all-in average retail rate" is defined to encompass the total cost of electricity per kilowatt-hour, including all associated charges and fees. The act will take effect upon its publication in the statute book.