Division of the Budget
Landon State Office Building Phone: (785) 296-2436
900 SW Jackson Street, Room 504 adam.c.proffitt@ks.gov
Topeka, KS 66612 Division of the Budget http://budget.kansas.gov
Adam C. Proffitt, Director Laura Kelly, Governor


February 14, 2024


The Honorable Michael Fagg, Chairperson
Senate Committee on Utilities
300 SW 10th Avenue, Room 548-S
Topeka, Kansas 66612
Dear Senator Fagg:
SUBJECT: Fiscal Note for SB 456 by Senate Committee on Utilities
In accordance with KSA 75-3715a, the following fiscal note concerning SB 456 is
respectfully submitted to your committee.
SB 456 would amend current law pertaining to public utilities. The bill would establish a
rebuttable presumption against the retirement of fossil fuel-fired electric generating units. Also,
the bill would, require the Kansas Corporation Commission (KCC) to submit an annual report to
the Legislature on the retirements, and extend the timelines for the KCC to make a determination
regarding the rate-making treatment for generating or transmission facilities.
To overcome the rebuttable presumption, the bill would require the KCC to make a finding
upon the evidence entered in a pertinent KCC proceeding. The evidence to overcome the
rebuttable presumption would include: (1) The utility will replace the abandoned or retired electric
generating unit with new electric generating capacity that is dispatchable, maintains or improves
the reliability and resilience of the electric transmission grid, and maintains the minimum reserve
capacity requirement established by the utility’s reliability coordinator; (2) The abandonment or
retirement will not harm the utility’s ratepayers or decrease the utility’s regional rate
competitiveness; (3) The abandonment or retirement is for economic purposes and for the benefit
of ratepayers and not solely based on achieving environmental, social, or governmental goals,
laws, rules or regulations; and (4) The cost savings to customers as a result of the abandonment or
retirement of the electric generating unit will occur.
The Honorable Michael Fagg, Chairperson
Page 2—SB 456

The Kansas Corporation Commission and the Citizens’ Utility Ratepayer Board indicate
that the enactment of the bill would not have a fiscal effect.

Sincerely,

Adam C. Proffitt
Director of the Budget


cc: Shonda Rabb, Citizens Utility Ratepayer Board
Peter Barstad, Kansas Corporation Commission


Statutes affected:
As introduced: 66-1239