SCS/SB 1013 - This act allows Kansas City Power and Light to transfer existing generating facilities to an affiliated entity.

An IOU must receive approval for the transfer assets to an affiliated entity from the Public Service Commission (PSC). The IOU must enter a purchase power agreement (PPA) with the affiliated entity. The PPA provide for provision of power to meet the retail load of the IOU at cost-of-service rates regulated by FERC and provide for operation and maintenance fo the transferred facilities. If FERC no longer regulates the rates established under the PPA the PSC will have authority to review and establish the cost-of-service rates in the PPA.

The act details certain information which must be included in its application to transfer assets which is filed with the PSC. The PSC is required to approve the asset transfer if certain findings are made. The PSC must approve or disapprove the transaction within 120 days. If there are to be any changes to the PPA the IOU must file information regarding the proposed changes with the PSC at least 180 days before the changes are to go into effect.

Subsequent transfers of assets must be approved in the same manner as the initial transfer of assets. The affiliated entities are require to hire a sufficient number of nonsupervisory employees to operate and maintain the stations, division or unit and offers of employment must first be made to the current employees of the IOU and under substantially the same terms of employment and continue such employment and terms for 30 months.

Nuclear decommissioning costs shall be recovered through unbundled charges or bundled rates.

Any transferred assets shall continue to be treated as property of the IOU for purposes of assessment and taxation. The State Tax Commission shall adopt rules to ensure the property transferred are valued and allocated in manner that is used for distributable property in effect August 28, 2002.
CINDY KADLEC