Article 22.--GAS SAFETY AND RELIABILITY POLICY ACT
66-2204.GSRS charges; requirements; procedure;commission authority.(a) At the time that a natural gas public utility files apetition withthe commissionseeking to establish or change a GSRS, it shall submit proposed GSRS rateschedules and itssupporting documentation regarding the calculation of the proposed GSRS withthe petition andshall serve commission staff and the citizens utility ratepayer board with acopy of itspetition, its proposed rate schedules and its supporting documentation.
(b) (1) When a petition, along with any associated proposed rateschedules, is filedpursuant to the provisions ofK.S.A. 2009 Supp.66-2202 through 66-2204, andamendments thereto, thecommission shall conduct anexamination of the proposed GSRS;
(2) the staff of the commission shall examine information of the natural gaspublic utility to confirm that the underlying costs are in accordance with theprovisions ofK.S.A. 2009 Supp.66-2202 through 66-2204, and amendmentsthereto, and to confirmproper calculation of the proposed charge. The staff shall submit areport regarding its examination to the commission not later than 60 daysafter the petition isfiled. No other revenue requirement or ratemaking issues may be examined inconsideration ofthe petition or associated proposed rate schedules filed pursuant to theprovisions ofK.S.A. 2009 Supp.66-2202 and 66-2204, and amendments thereto;
(3) the commission may hold a hearing on the petition and anyassociated rateschedules and shall issue an order to become effective not later than 120daysafter the petition is filed; and
(4) if the commission finds that a petition complies with therequirementsofK.S.A. 2009 Supp.66-2202 through 66-2204, and amendments thereto, thecommission shall enter anorder authorizing the natural gas publicutility to impose a GSRS that is sufficient to recover appropriate pretaxrevenue, as determinedby the commission pursuant to the provisions ofK.S.A. 2009 Supp.66-2202through 66-2204, andamendments thereto.
(c) A natural gas utility may effectuate a change in its rate pursuant tothe provisions ofthis section no more often than once every 12 months.
(d) In determining the appropriate pretax revenue, the commission shallconsider onlythe following factors:
(1) The net original cost of eligible infrastructure system replacements. Thenetoriginal cost shall be defined as the original cost of eligible infrastructuresystem replacementsless associated retirements of existing infrastructure;
(2) the accumulated deferred income taxes associated with the eligibleinfrastructure system replacements;
(3) the accumulated depreciation associated with the eligible infrastructuresystem replacements;
(4) the current state, federal and local income tax or excise rates;
(5) the natural gas public utility's actual regulatory capital structure asdetermined during the most recent general rate proceeding of the natural gaspublic utility;
(6) the actual cost rates for the natural gas public utility's debt andpreferredstock as determined during the most recent general rate proceeding of thenatural gas publicutility;
(7) the natural gas public utility's cost of common equity as determinedduringthe most recent general rate proceeding of the natural gas public utility;
(8) the current depreciation rates applicable to the eligible infrastructuresystemreplacements; and
(9) in the event information pursuant to paragraphs (5), (6) and (7)are unavailable and the commission is not provided with suchinformation on an agreed-upon basis, the commission shall utilize the averageof the recommendations containedin the testimony submitted by the natural gas public utility and commissionstaff during the mostrecent general rate proceeding of the natural gas public utility to determinethe capital structure,recommended cost rates for debt and preferred stock and recommended cost ofcommon equityto determine the average weighted cost of capital.
(e) (1) The monthly GSRS charge shall be allocated among the natural gaspublicutility's classes of customers in the same manner as costs for the same typeof facilities wasallocated among classes of customers in the natural gas public utility's mostrecent general rateproceeding. If that allocation is not available or determinable, thecommission shall utilize theaverage of the recommendations contained in the testimony submitted by thenatural gas publicutility and the commission staff regarding class allocation of costs. A GSRSshall be charged to customers as a monthly fixed charge and not basedon volumetric consumption. Such monthly charge shall not increase more than$.40 perresidential customer over the base rates in effect for the initialfiling of a GSRS. Thereafter, each filing shall not increase the monthly chargemore than $.40 perresidential customer over the most recent filing of a GSRS;
(2) at the end of each twelve-month calendar period the GSRS is in effect,thenatural gas public utility shall reconcile the differences between the revenuesresulting from aGSRS and the appropriate pretax revenues as found by the commission for thatperiod and shallsubmit the reconciliation and a proposed GSRS adjustment to the commission forapproval torecover or refund the difference, as appropriate, through adjustments of theGSRS charge.
(f) (1) A natural gas public utility that has implemented a GSRSpursuant to theprovisions ofK.S.A. 2009 Supp.66-2202 through 66-2204, and amendmentsthereto, shall file revisedrate schedules toreset the GSRS tozero when new base rates and charges become effective for the natural gaspublic utilityfollowing a commission order establishing customer rates in a general rateproceeding thatincorporates in the utility's base rates, subject to subsections (h) and (i),eligiblecosts previously reflected in the currently effective GSRS;
(2) upon the inclusion in a natural gas public utility's base rates subjecttosubsections (h) and (i) of eligible costs previously reflectedin a GSRS, the naturalgas public utility shall immediately thereafter reconcile any previouslyunreconciled GSRSrevenues as necessary to ensure that revenues resulting from the GSRS match asclosely aspossible the appropriate pretax revenues as found by the commission for thatperiod.
(g) A natural gas public utility's filing of a petition or change to a GSRSpursuant to theprovisions ofK.S.A. 2009 Supp.66-2202 through 66-2204, and amendmentsthereto, shall not be deemedto be a rateincrease for purposes ofK.S.A. 66-117, and amendments thereto.
(h) Commission approval of a petition, and any associated rate schedules, toestablish orchange a GSRS pursuant to the provisions ofK.S.A. 2009 Supp.66-2202 through66-2204, and amendments thereto, shall inno way bebinding upon the commission in determining the ratemaking treatment to beapplied to eligibleinfrastructure system replacements during a subsequent general rate proceedingwhen thecommission may undertake to review the reasonableness and prudence of suchcosts. In theevent the commission disallows, during a subsequent general rate proceeding,recovery of costsassociated with eligible infrastructure system replacements previously includedin a GSRS, thenatural gas public utility shall offset its GSRS in the future as necessary torecognize andaccount for any such over collections.
(i) Nothing in this section shall be construed as limiting the authority ofthe commissionto review and consider infrastructure system replacement costs along with othercosts during anygeneral rate proceeding of any natural gas public utility.
Article 22.--GAS SAFETY AND RELIABILITY POLICY ACT
66-2204.GSRS charges; requirements; procedure;commission authority.(a) At the time that a natural gas public utility files apetition withthe commissionseeking to establish or change a GSRS, it shall submit proposed GSRS rateschedules and itssupporting documentation regarding the calculation of the proposed GSRS withthe petition andshall serve commission staff and the citizens utility ratepayer board with acopy of itspetition, its proposed rate schedules and its supporting documentation.
(b) (1) When a petition, along with any associated proposed rateschedules, is filedpursuant to the provisions ofK.S.A. 2009 Supp.66-2202 through 66-2204, andamendments thereto, thecommission shall conduct anexamination of the proposed GSRS;
(2) the staff of the commission shall examine information of the natural gaspublic utility to confirm that the underlying costs are in accordance with theprovisions ofK.S.A. 2009 Supp.66-2202 through 66-2204, and amendmentsthereto, and to confirmproper calculation of the proposed charge. The staff shall submit areport regarding its examination to the commission not later than 60 daysafter the petition isfiled. No other revenue requirement or ratemaking issues may be examined inconsideration ofthe petition or associated proposed rate schedules filed pursuant to theprovisions ofK.S.A. 2009 Supp.66-2202 and 66-2204, and amendments thereto;
(3) the commission may hold a hearing on the petition and anyassociated rateschedules and shall issue an order to become effective not later than 120daysafter the petition is filed; and
(4) if the commission finds that a petition complies with therequirementsofK.S.A. 2009 Supp.66-2202 through 66-2204, and amendments thereto, thecommission shall enter anorder authorizing the natural gas publicutility to impose a GSRS that is sufficient to recover appropriate pretaxrevenue, as determinedby the commission pursuant to the provisions ofK.S.A. 2009 Supp.66-2202through 66-2204, andamendments thereto.
(c) A natural gas utility may effectuate a change in its rate pursuant tothe provisions ofthis section no more often than once every 12 months.
(d) In determining the appropriate pretax revenue, the commission shallconsider onlythe following factors:
(1) The net original cost of eligible infrastructure system replacements. Thenetoriginal cost shall be defined as the original cost of eligible infrastructuresystem replacementsless associated retirements of existing infrastructure;
(2) the accumulated deferred income taxes associated with the eligibleinfrastructure system replacements;
(3) the accumulated depreciation associated with the eligible infrastructuresystem replacements;
(4) the current state, federal and local income tax or excise rates;
(5) the natural gas public utility's actual regulatory capital structure asdetermined during the most recent general rate proceeding of the natural gaspublic utility;
(6) the actual cost rates for the natural gas public utility's debt andpreferredstock as determined during the most recent general rate proceeding of thenatural gas publicutility;
(7) the natural gas public utility's cost of common equity as determinedduringthe most recent general rate proceeding of the natural gas public utility;
(8) the current depreciation rates applicable to the eligible infrastructuresystemreplacements; and
(9) in the event information pursuant to paragraphs (5), (6) and (7)are unavailable and the commission is not provided with suchinformation on an agreed-upon basis, the commission shall utilize the averageof the recommendations containedin the testimony submitted by the natural gas public utility and commissionstaff during the mostrecent general rate proceeding of the natural gas public utility to determinethe capital structure,recommended cost rates for debt and preferred stock and recommended cost ofcommon equityto determine the average weighted cost of capital.
(e) (1) The monthly GSRS charge shall be allocated among the natural gaspublicutility's classes of customers in the same manner as costs for the same typeof facilities wasallocated among classes of customers in the natural gas public utility's mostrecent general rateproceeding. If that allocation is not available or determinable, thecommission shall utilize theaverage of the recommendations contained in the testimony submitted by thenatural gas publicutility and the commission staff regarding class allocation of costs. A GSRSshall be charged to customers as a monthly fixed charge and not basedon volumetric consumption. Such monthly charge shall not increase more than$.40 perresidential customer over the base rates in effect for the initialfiling of a GSRS. Thereafter, each filing shall not increase the monthly chargemore than $.40 perresidential customer over the most recent filing of a GSRS;
(2) at the end of each twelve-month calendar period the GSRS is in effect,thenatural gas public utility shall reconcile the differences between the revenuesresulting from aGSRS and the appropriate pretax revenues as found by the commission for thatperiod and shallsubmit the reconciliation and a proposed GSRS adjustment to the commission forapproval torecover or refund the difference, as appropriate, through adjustments of theGSRS charge.
(f) (1) A natural gas public utility that has implemented a GSRSpursuant to theprovisions ofK.S.A. 2009 Supp.66-2202 through 66-2204, and amendmentsthereto, shall file revisedrate schedules toreset the GSRS tozero when new base rates and charges become effective for the natural gaspublic utilityfollowing a commission order establishing customer rates in a general rateproceeding thatincorporates in the utility's base rates, subject to subsections (h) and (i),eligiblecosts previously reflected in the currently effective GSRS;
(2) upon the inclusion in a natural gas public utility's base rates subjecttosubsections (h) and (i) of eligible costs previously reflectedin a GSRS, the naturalgas public utility shall immediately thereafter reconcile any previouslyunreconciled GSRSrevenues as necessary to ensure that revenues resulting from the GSRS match asclosely aspossible the appropriate pretax revenues as found by the commission for thatperiod.
(g) A natural gas public utility's filing of a petition or change to a GSRSpursuant to theprovisions ofK.S.A. 2009 Supp.66-2202 through 66-2204, and amendmentsthereto, shall not be deemedto be a rateincrease for purposes ofK.S.A. 66-117, and amendments thereto.
(h) Commission approval of a petition, and any associated rate schedules, toestablish orchange a GSRS pursuant to the provisions ofK.S.A. 2009 Supp.66-2202 through66-2204, and amendments thereto, shall inno way bebinding upon the commission in determining the ratemaking treatment to beapplied to eligibleinfrastructure system replacements during a subsequent general rate proceedingwhen thecommission may undertake to review the reasonableness and prudence of suchcosts. In theevent the commission disallows, during a subsequent general rate proceeding,recovery of costsassociated with eligible infrastructure system replacements previously includedin a GSRS, thenatural gas public utility shall offset its GSRS in the future as necessary torecognize andaccount for any such over collections.
(i) Nothing in this section shall be construed as limiting the authority ofthe commissionto review and consider infrastructure system replacement costs along with othercosts during anygeneral rate proceeding of any natural gas public utility.
Article 22.--GAS SAFETY AND RELIABILITY POLICY ACT
66-2204.GSRS charges; requirements; procedure;commission authority.(a) At the time that a natural gas public utility files apetition withthe commissionseeking to establish or change a GSRS, it shall submit proposed GSRS rateschedules and itssupporting documentation regarding the calculation of the proposed GSRS withthe petition andshall serve commission staff and the citizens utility ratepayer board with acopy of itspetition, its proposed rate schedules and its supporting documentation.
(b) (1) When a petition, along with any associated proposed rateschedules, is filedpursuant to the provisions ofK.S.A. 2009 Supp.66-2202 through 66-2204, andamendments thereto, thecommission shall conduct anexamination of the proposed GSRS;
(2) the staff of the commission shall examine information of the natural gaspublic utility to confirm that the underlying costs are in accordance with theprovisions ofK.S.A. 2009 Supp.66-2202 through 66-2204, and amendmentsthereto, and to confirmproper calculation of the proposed charge. The staff shall submit areport regarding its examination to the commission not later than 60 daysafter the petition isfiled. No other revenue requirement or ratemaking issues may be examined inconsideration ofthe petition or associated proposed rate schedules filed pursuant to theprovisions ofK.S.A. 2009 Supp.66-2202 and 66-2204, and amendments thereto;
(3) the commission may hold a hearing on the petition and anyassociated rateschedules and shall issue an order to become effective not later than 120daysafter the petition is filed; and
(4) if the commission finds that a petition complies with therequirementsofK.S.A. 2009 Supp.66-2202 through 66-2204, and amendments thereto, thecommission shall enter anorder authorizing the natural gas publicutility to impose a GSRS that is sufficient to recover appropriate pretaxrevenue, as determinedby the commission pursuant to the provisions ofK.S.A. 2009 Supp.66-2202through 66-2204, andamendments thereto.
(c) A natural gas utility may effectuate a change in its rate pursuant tothe provisions ofthis section no more often than once every 12 months.
(d) In determining the appropriate pretax revenue, the commission shallconsider onlythe following factors:
(1) The net original cost of eligible infrastructure system replacements. Thenetoriginal cost shall be defined as the original cost of eligible infrastructuresystem replacementsless associated retirements of existing infrastructure;
(2) the accumulated deferred income taxes associated with the eligibleinfrastructure system replacements;
(3) the accumulated depreciation associated with the eligible infrastructuresystem replacements;
(4) the current state, federal and local income tax or excise rates;
(5) the natural gas public utility's actual regulatory capital structure asdetermined during the most recent general rate proceeding of the natural gaspublic utility;
(6) the actual cost rates for the natural gas public utility's debt andpreferredstock as determined during the most recent general rate proceeding of thenatural gas publicutility;
(7) the natural gas public utility's cost of common equity as determinedduringthe most recent general rate proceeding of the natural gas public utility;
(8) the current depreciation rates applicable to the eligible infrastructuresystemreplacements; and
(9) in the event information pursuant to paragraphs (5), (6) and (7)are unavailable and the commission is not provided with suchinformation on an agreed-upon basis, the commission shall utilize the averageof the recommendations containedin the testimony submitted by the natural gas public utility and commissionstaff during the mostrecent general rate proceeding of the natural gas public utility to determinethe capital structure,recommended cost rates for debt and preferred stock and recommended cost ofcommon equityto determine the average weighted cost of capital.
(e) (1) The monthly GSRS charge shall be allocated among the natural gaspublicutility's classes of customers in the same manner as costs for the same typeof facilities wasallocated among classes of customers in the natural gas public utility's mostrecent general rateproceeding. If that allocation is not available or determinable, thecommission shall utilize theaverage of the recommendations contained in the testimony submitted by thenatural gas publicutility and the commission staff regarding class allocation of costs. A GSRSshall be charged to customers as a monthly fixed charge and not basedon volumetric consumption. Such monthly charge shall not increase more than$.40 perresidential customer over the base rates in effect for the initialfiling of a GSRS. Thereafter, each filing shall not increase the monthly chargemore than $.40 perresidential customer over the most recent filing of a GSRS;
(2) at the end of each twelve-month calendar period the GSRS is in effect,thenatural gas public utility shall reconcile the differences between the revenuesresulting from aGSRS and the appropriate pretax revenues as found by the commission for thatperiod and shallsubmit the reconciliation and a proposed GSRS adjustment to the commission forapproval torecover or refund the difference, as appropriate, through adjustments of theGSRS charge.
(f) (1) A natural gas public utility that has implemented a GSRSpursuant to theprovisions ofK.S.A. 2009 Supp.66-2202 through 66-2204, and amendmentsthereto, shall file revisedrate schedules toreset the GSRS tozero when new base rates and charges become effective for the natural gaspublic utilityfollowing a commission order establishing customer rates in a general rateproceeding thatincorporates in the utility's base rates, subject to subsections (h) and (i),eligiblecosts previously reflected in the currently effective GSRS;
(2) upon the inclusion in a natural gas public utility's base rates subjecttosubsections (h) and (i) of eligible costs previously reflectedin a GSRS, the naturalgas public utility shall immediately thereafter reconcile any previouslyunreconciled GSRSrevenues as necessary to ensure that revenues resulting from the GSRS match asclosely aspossible the appropriate pretax revenues as found by the commission for thatperiod.
(g) A natural gas public utility's filing of a petition or change to a GSRSpursuant to theprovisions ofK.S.A. 2009 Supp.66-2202 through 66-2204, and amendmentsthereto, shall not be deemedto be a rateincrease for purposes ofK.S.A. 66-117, and amendments thereto.
(h) Commission approval of a petition, and any associated rate schedules, toestablish orchange a GSRS pursuant to the provisions ofK.S.A. 2009 Supp.66-2202 through66-2204, and amendments thereto, shall inno way bebinding upon the commission in determining the ratemaking treatment to beapplied to eligibleinfrastructure system replacements during a subsequent general rate proceedingwhen thecommission may undertake to review the reasonableness and prudence of suchcosts. In theevent the commission disallows, during a subsequent general rate proceeding,recovery of costsassociated with eligible infrastructure system replacements previously includedin a GSRS, thenatural gas public utility shall offset its GSRS in the future as necessary torecognize andaccount for any such over collections.
(i) Nothing in this section shall be construed as limiting the authority ofthe commissionto review and consider infrastructure system replacement costs along with othercosts during anygeneral rate proceeding of any natural gas public utility.
