Article 1.--POWERS OF STATE CORPORATION COMMISSION
66-128g.Determination of "prudence" in determining reasonable valueof electric generating property; factors to be considered; presumption oflack of prudence of costs in excess of 200% of "original cost estimate";definition of "original cost estimate"; when costs exceeding 200% may be included.(a) The factors which shall be considered by the commissionin making the determination of "prudence" or lack thereof in determiningthe reasonable value of electric generating property, ascontemplated by this act shall include without limitation the following:
(1) A comparison of the existing rates of the utility with rates thatwould result if the entire cost of the facility were included in the ratebase for that facility;
(2) a comparison of the rates of any other utility in the state which hasno ownership interest in the facility under consideration with the ratesthat would result if the entire cost of the facility were included in the rate base;
(3) a comparison of the final cost of the facility under consideration tothe final cost of other facilities constructed within a reasonable timebefore or after construction of the facility under consideration;
(4) a comparison of the original cost estimates made by the owners of thefacility under consideration with the final cost of such facility;
(5) the ability of the owners of the facility underconsideration to sell on the competitive wholesale or other market electrical powergenerated by such facility if the rates for such power were determined byinclusion of the entire cost of the facility in the rate base;
(6) a comparison of any overruns in the construction cost of the facilityunder consideration with any cost overruns of any other electric generatingfacility constructed within a reasonable time before or after constructionof the facility under consideration;
(7) whether the utility having an ownership interest in the facilitybeing considered has provided a method to ensure that the cost of anydecommissioning, any waste disposal or any cost of clean up of any incidentin construction or operation of such facility is to be paid by the utility;
(8) inappropriate or poor management decisions in construction oroperation of the facility being considered;
(9) whether inclusion of all or any part of the cost of construction ofthe facility under consideration, and the resulting rates of the utilitytherefrom, would have an adverse economic impact upon the people of Kansas;
(10) whether the utility acted in the general public interest inmanagement decisions in the acquisition, construction or operation of the facility;
(11) whether the utility accepted risks in the construction of thefacility which were inappropriate to the general public interest to Kansas;
(12) any other fact, factor or relationship which may indicate prudenceor lack thereof as that term is commonly used.
(b) The portion of the cost of a plant or facility which exceeds 200% ofthe "original cost estimate" thereof shall be presumed to have beenincurred due to a lack of prudence. The commission may include any or allof the portion of cost in excess of 200% of the "original cost estimate" ifthe commission finds by a preponderance of the evidence that such costswere prudently incurred. As used in this act "original cost estimate" means:
(1) For property of an electric utility which has been constructed withoutobtaining an advance permit under K.S.A. 66-1,159 et seq., and amendmentsthereto, the "definitive estimate"; and
(2) for property of an electric utility which has been constructed afterobtaining an advance permit under K.S.A. 66-1,159 et seq., and amendmentsthereto, the cost estimate made by the utility in the process of obtainingthe advance permit.
Article 1.--POWERS OF STATE CORPORATION COMMISSION
66-128g.Determination of "prudence" in determining reasonable valueof electric generating property; factors to be considered; presumption oflack of prudence of costs in excess of 200% of "original cost estimate";definition of "original cost estimate"; when costs exceeding 200% may be included.(a) The factors which shall be considered by the commissionin making the determination of "prudence" or lack thereof in determiningthe reasonable value of electric generating property, ascontemplated by this act shall include without limitation the following:
(1) A comparison of the existing rates of the utility with rates thatwould result if the entire cost of the facility were included in the ratebase for that facility;
(2) a comparison of the rates of any other utility in the state which hasno ownership interest in the facility under consideration with the ratesthat would result if the entire cost of the facility were included in the rate base;
(3) a comparison of the final cost of the facility under consideration tothe final cost of other facilities constructed within a reasonable timebefore or after construction of the facility under consideration;
(4) a comparison of the original cost estimates made by the owners of thefacility under consideration with the final cost of such facility;
(5) the ability of the owners of the facility underconsideration to sell on the competitive wholesale or other market electrical powergenerated by such facility if the rates for such power were determined byinclusion of the entire cost of the facility in the rate base;
(6) a comparison of any overruns in the construction cost of the facilityunder consideration with any cost overruns of any other electric generatingfacility constructed within a reasonable time before or after constructionof the facility under consideration;
(7) whether the utility having an ownership interest in the facilitybeing considered has provided a method to ensure that the cost of anydecommissioning, any waste disposal or any cost of clean up of any incidentin construction or operation of such facility is to be paid by the utility;
(8) inappropriate or poor management decisions in construction oroperation of the facility being considered;
(9) whether inclusion of all or any part of the cost of construction ofthe facility under consideration, and the resulting rates of the utilitytherefrom, would have an adverse economic impact upon the people of Kansas;
(10) whether the utility acted in the general public interest inmanagement decisions in the acquisition, construction or operation of the facility;
(11) whether the utility accepted risks in the construction of thefacility which were inappropriate to the general public interest to Kansas;
(12) any other fact, factor or relationship which may indicate prudenceor lack thereof as that term is commonly used.
(b) The portion of the cost of a plant or facility which exceeds 200% ofthe "original cost estimate" thereof shall be presumed to have beenincurred due to a lack of prudence. The commission may include any or allof the portion of cost in excess of 200% of the "original cost estimate" ifthe commission finds by a preponderance of the evidence that such costswere prudently incurred. As used in this act "original cost estimate" means:
(1) For property of an electric utility which has been constructed withoutobtaining an advance permit under K.S.A. 66-1,159 et seq., and amendmentsthereto, the "definitive estimate"; and
(2) for property of an electric utility which has been constructed afterobtaining an advance permit under K.S.A. 66-1,159 et seq., and amendmentsthereto, the cost estimate made by the utility in the process of obtainingthe advance permit.
Article 1.--POWERS OF STATE CORPORATION COMMISSION
66-128g.Determination of "prudence" in determining reasonable valueof electric generating property; factors to be considered; presumption oflack of prudence of costs in excess of 200% of "original cost estimate";definition of "original cost estimate"; when costs exceeding 200% may be included.(a) The factors which shall be considered by the commissionin making the determination of "prudence" or lack thereof in determiningthe reasonable value of electric generating property, ascontemplated by this act shall include without limitation the following:
(1) A comparison of the existing rates of the utility with rates thatwould result if the entire cost of the facility were included in the ratebase for that facility;
(2) a comparison of the rates of any other utility in the state which hasno ownership interest in the facility under consideration with the ratesthat would result if the entire cost of the facility were included in the rate base;
(3) a comparison of the final cost of the facility under consideration tothe final cost of other facilities constructed within a reasonable timebefore or after construction of the facility under consideration;
(4) a comparison of the original cost estimates made by the owners of thefacility under consideration with the final cost of such facility;
(5) the ability of the owners of the facility underconsideration to sell on the competitive wholesale or other market electrical powergenerated by such facility if the rates for such power were determined byinclusion of the entire cost of the facility in the rate base;
(6) a comparison of any overruns in the construction cost of the facilityunder consideration with any cost overruns of any other electric generatingfacility constructed within a reasonable time before or after constructionof the facility under consideration;
(7) whether the utility having an ownership interest in the facilitybeing considered has provided a method to ensure that the cost of anydecommissioning, any waste disposal or any cost of clean up of any incidentin construction or operation of such facility is to be paid by the utility;
(8) inappropriate or poor management decisions in construction oroperation of the facility being considered;
(9) whether inclusion of all or any part of the cost of construction ofthe facility under consideration, and the resulting rates of the utilitytherefrom, would have an adverse economic impact upon the people of Kansas;
(10) whether the utility acted in the general public interest inmanagement decisions in the acquisition, construction or operation of the facility;
(11) whether the utility accepted risks in the construction of thefacility which were inappropriate to the general public interest to Kansas;
(12) any other fact, factor or relationship which may indicate prudenceor lack thereof as that term is commonly used.
(b) The portion of the cost of a plant or facility which exceeds 200% ofthe "original cost estimate" thereof shall be presumed to have beenincurred due to a lack of prudence. The commission may include any or allof the portion of cost in excess of 200% of the "original cost estimate" ifthe commission finds by a preponderance of the evidence that such costswere prudently incurred. As used in this act "original cost estimate" means:
(1) For property of an electric utility which has been constructed withoutobtaining an advance permit under K.S.A. 66-1,159 et seq., and amendmentsthereto, the "definitive estimate"; and
(2) for property of an electric utility which has been constructed afterobtaining an advance permit under K.S.A. 66-1,159 et seq., and amendmentsthereto, the cost estimate made by the utility in the process of obtainingthe advance permit.
