HS HB 700 -- ELECTRICAL CORPORATIONS (Mays, 50)

This substitute allows electrical corporations to recover in a
timely manner purchased capacity and energy and related costs
that have been reasonably and prudently incurred in the
provision of electricity, according to rate schedules approved
by the Public Service Commission.  Once the rate schedules have
been established, the commission will examine the schedules
independently of that company's other rate schedules.  The rate
schedules will be considered separately from other factors that
may affect overall rates or other costs.

An electrical corporation may file proposed rate schedules with
the commission up to 12 times per calendar year, and upon a
prima facie showing of the accuracy of the costs, the rate
schedule will take effect on 30 days' notice on an interim and
subject to refund basis, pending investigation by the
commission.  If no reason to challenge the charges is found, the
commission will allow them to become final.  If a reason is
found to challenge the charges, the commission will hold
evidentiary hearings and make a determination.

This substitute has an emergency clause.

FISCAL NOTE:  Estimated Net Effect on Public Service Commission
Fund of $0 in FY 2000, FY 2001, FY 2002.  Estimated Net Cost to
General Revenue of $100,000 in FY 2000, $100,000 in FY 2001, and
$0 in FY 2002.

HB 700 -- ELECTRICAL CORPORATIONS

CO-SPONSORS:  Mays (50), Hegeman, Burton, Kelly (27)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Utilities
Regulation by a vote of 15 to 3.

This bill allows electrical corporations to recover in a timely
manner purchased capacity and energy costs that have been
reasonably and prudently incurred in the provision of
electricity and steam, according to rate schedules approved by
the Public Service Commission.

This bill has an emergency clause.

FISCAL NOTE:  Estimated Net Cost to Public Service Commission
Fund of $396,092 in FY 2000, $369,104 in FY 2001, and $378,618
in FY 2002.  The net effect to the Public Service Commission
Fund could be $0 if the PSC increases the PSC assessment and
appropriation is made.

PROPONENTS:  Supporters say that the ratemaking process does not
allow changes in rates quickly enough to recover the cost of
purchased energy.  Current law does not authorize the PSC to
consider purchased energy recovery.

Testifying for the bill were Representative Mays; Empire
District Electric Co.; St. Joseph Light & Power; Kansas City
Power & Light; AmerenUE; and Utilicorp United.

OPPONENTS:  Those who oppose the bill say that not allowing fuel
adjustment since the late 1970s has served the consumer well.
They say that recovery of these costs will increase costs to
consumers.

Testifying against the bill was Office of Public Counsel.

Donna Schlosser, Legislative Analyst

HB 700 -- Electrical Corporations

Co-Sponsors:  Mays (50), Hegeman, Burton, Kelly (27)

This bill allows electrical corporations to recover in a timely
manner purchased capacity and energy costs that have been
reasonably and prudently incurred in the provision of
electricity and steam, according to rate schedules approved by
the Public Service Commission.

This bill has an emergency clause.