Kansas Senate Bill SB348

Kansas 2025-2026 Regular Session

• Introduced: 1/21/26
• Refer: 1/21/26
• Report Pass: 1/27/26
• Engrossed: 2/9/26
• Refer: 2/9/26
• Report Pass: 2/25/26
• Enrolled: 3/6/26
• Passed: 3/12/26

Caption

Exempting any electric public utility that is a not-for-profit wholly owned subsidiary of an electric cooperative public utility from the jurisdiction of the state corporation commission.

Summary

SB 348 creates a new statutory exemption from Kansas Corporation Commission jurisdiction for electric public utilities that are not-for-profit, wholly owned subsidiaries of electric cooperative public utilities, so long as they provide retail electric service in Kansas. In effect, these subsidiary utilities would generally operate outside the Commission’s normal rate-making and regulatory oversight, while still remaining subject to certain targeted requirements and exceptions set out in the bill. The bill preserves a customer-driven check on rates. If enough customers petition within one year of a rate change, the Commission must investigate the utility’s rates, charges, classifications, and schedules, and may order new rates if it finds them unjust, unreasonable, discriminatory, or preferential. The bill also requires advance notice of meetings where rate changes are discussed, public access to those meetings, maintenance of posted rate schedules, and limits on certain equity-transferring payments to the parent cooperative without Commission approval. It also makes clear that these utilities remain subject to the Renewable Energy Standards Act and to several other Commission authorities, including service territory, certificates of convenience and necessity, transmission-related matters, and certain siting and relief proceedings. SB 348 also gives customers a direct mechanism to end the exemption. If at least 10% of customers petition, an election can be held among customers of the exempt utility, with notice and mail-ballot procedures specified in the bill. If a majority of voting customers approve, the parent cooperative must notify the Commission and the exemption terminates. This creates a hybrid regulatory model: broad exemption from routine Commission oversight, but with retained oversight for specific issues and a customer-triggered path back into regulation. The overall sentiment reflected in the bill’s voting history was strongly favorable and noncontroversial. The Senate passed the bill 38-0, and the House passed it 119-0, indicating broad bipartisan support. No committee transcript was provided, so there is no recorded floor or committee debate in the supplied materials to suggest organized opposition. The main point of potential contention is the balance between deregulation and consumer protection. Supporters appear to have accepted the exemption for cooperative subsidiaries while preserving customer remedies, notice requirements, and limited Commission review. Any concerns would likely center on whether the petition thresholds and election procedures are sufficient to protect customers, and whether exempting these utilities from ordinary Commission jurisdiction could reduce oversight of rates and governance.

Impact

The bill amends Kansas utility regulation by carving out a new class of electric public utilities from the State Corporation Commission’s general jurisdiction: not-for-profit, wholly owned subsidiaries of electric cooperative public utilities serving retail customers in Kansas. It also adds new statutory procedures for customer petitions, rate investigations, notice of rate meetings, public access to rate information, limits on equity transfers to parent cooperatives, and a customer election process to terminate the exemption. Existing Commission authority over several utility matters is preserved, and the bill expressly keeps these utilities subject to the Renewable Energy Standards Act.

Sentiment

The bill appears to have been received positively and without significant controversy in the legislative process. It passed the Senate unanimously and then passed the House unanimously as well, suggesting broad agreement across chambers and parties. Because no committee discussion transcript was provided, the available record does not show detailed debate, but the voting history indicates strong support for the measure as amended.

Contention

The principal policy tension in SB 348 is between granting regulatory relief to cooperative-owned subsidiary utilities and preserving protections for customers who might otherwise lose ordinary Commission oversight. The bill addresses that concern by allowing customer petitions for rate review, requiring notice and access to meetings, and providing a customer vote to terminate the exemption. Any opposition would likely focus on whether those safeguards are strong enough, whether the petition thresholds are too high, and whether exempting these utilities could reduce transparency or weaken rate oversight.